The momentum the region began to experience in 1994 is showing signs of weakening as slower growth appears to be the norm in the near-term. The international financial crisis and the resulting decline in markets for exports from the region will undoubtedly slow the growth of the region's manufacturing sector. The financial roots of the crisis may also affect the region through changes in interest rates and other financial variables, as dividends and interest are unusually large in this region as a source of income. Fortunately, while the financial crisis and less demand for exports are important, they are not so pervasive as to cause a major downturn in Southeast Kansas. For example, transfer payments and health care services are not likely to be slowed by international or even domestic recessions.
Labor shortages are likely to present the region with a greater challenge.
Even if the unemployment rate inches lower, there just are not enough workers to allow for a fast-paced expansion over an extended period of time. A migration of workers to Southeast Kansas is not likely with the average earnings per job in the region well below the state or nation as a whole. The outlook for the region is for continued growth, albeit at a slower pace than a few years earlier and somewhat slower than other analysts forecast for the state and nation as a whole. The outlook for the twenty-first century is another story and the next few years may make a significant difference as the region adapts to change.