Entering 2009, the St. Louis economy was slowing primarily due to a weakening manufacturing sector. In fact, that sector has been responsible for about 40% of the 23,000 jobs lost during the past year despite the fact that it employs less than 10% of the workforce.

In contrast to many other major metro areas, the St. Louis construction sector has, to date, proven to be quite resilient, given that its job count has fallen by less than 1,000 despite a 45% year-to-date drop in residential building permits. Other sectors which have contributed to the slowdown in employment in St. Louis over the past year include business and professional services (-4,800); transportation and utilities (-3,700); and government services. The one sector which has added jobs is education and health services, on account of increased hiring by Pfizer and bioMerieux.

Looking ahead, the fallout from weak consumer spending and business investment across the country will probably cause the manufacturing sector to continue to act as a significant drag on the St. Louis economy. Moreover, while the recently announced federal government stimulus package will eventually have a positive impact on the metro area's economy, this impact will probably be quite diffuse and not translate into much additional employment until late in 2009 or early in 2010.

In the meantime, according to the most recent Manpower Employment Survey, near term job prospects appear somewhat better in construction, wholesale and retail trade, transportation and utilities and professional and business services. Given the deteriorating outlook for manufacturing, it is not surprising that employers in that sector are planning on further staff reductions.

Although the overall outlook for St Louis is rather bleak, two major projects appear likely to move forward in the near term. The first is the Centre for Emerging Technologies, which recently received a $1 million grant from Monsanto Co. To date, the center has almost $16 million of the $18 million it needs to start construction.

Also, according to the St. Louis Post Dispatch, the St. Louis Board of Aldermen have approved subsidies for the much-debated Ballpark Village next to Busch Stadium. The first phase of this project, once approved, will involve a minimum of 325,000 suare feet of office space and cost an estimated $300 million.