The financial crisis has grabbed headlines over the past few weeks, but it is difficult to assess how this situation will be felt here in the Kansas City area. The crisis is rocking the economy at its core, so virtually everyone who participates in the economy — that is, anyone who uses credit in our credit-based economy — will feel the impact directly or indirectly. While congress is debating what steps to take to ensure this doesn’t happen again, we can assume that there will be some shake-up in the financial sector, a rather important sector for the Kansas City economy.
The location quotient for the financial activities sector is 1.2, meaning that the percent of our workforce employed in the finance sector is 20 percent higher than the nation’s percentage. Overall, Kansas City has nearly 74,000 people employed in financial services. (Learn more about location quotients.)
The location quotient for the financial activities sector is 1.2, meaning that the percent of our workforce employed in the finance sector is 20 percent higher than the nation’s percentage. Overall, Kansas City has nearly 74,000 people employed in financial services. (Learn more about location quotients.)
Employment growth has been slow but steady in recent years, outpacing the nation. But the growth rate dropped dramatically in the end of 2007, and has turned negative over the summer. This is likely due to the problems in the home lending industry. While this industry has already begun to adjust, it is reasonable to expect more losses over the next several months.
With the finance sector’s relative importance to Kansas City, we could feel the impact of its difficulties more than the rest of the nation. We will keep an eye on Financial Activity employment and inform you of any changes in the months to come.
