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Quarterly
Monitor
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Volume 2, Number 1  August 1997
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The purpose of the Quarterly Monitor is to summarize key
economic indicators and reports relating to Oklahoma State
Government. The Senate Staff will continue to regularly update and
upgrade our economic data as it becomes available. Comments and
suggestions are welcomed. Please contact Eren Hays at 405/521-5671 or
e-mail at
hays@lsb.state.ok.us.
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Newest Report on Oklahoma's
Per Capita Personal Income
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Oklahoma continues to experience increases in gross state
product. Job creation figures and unemployment rates are
superior to national levels. However, another important
economic indicator -- Oklahoma's Per Capita Personal Income
(PCPI)-- remains a concern.
The Oklahoma 2000 report published in State Policy and
Economic Development in Oklahoma: 1997 shows that PCPI lags
behind some neighboring states and the nation. Several
contributing factors are identified in the report:
- Oklahoma's occupational mix is very different than
that of high earnings states. The occupations that have
the highest earnings per worker are the executive/
administrative/managerial and professional specialty
occupations. These positions are underrepresented in
Oklahoma in comparison to states with high PCPIs. These
states also have a higher concentration of
finance/insurance/real estate, and services occupations
(for example doctors, accountants, and engineers) than
Oklahoma does. In Oklahoma, lower paying occupations such
as farming/fisheries/forestry categories are
overrepresented as well as mining, retail trade, and
government (see graph below).
- Earnings per job in most occupations are lower for
Oklahoma than for higher personal income states.
- Our low cost of living significantly offsets lower
earnings, but not enough to balance them out.
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Previous analyses have pointed to additional
reasons for Oklahoma income gaps:
- Oklahoma has fewer of its citizens in the
labor force than the average state. Oklahoma ranks 45th in the
nation with 48 percent of our population working as compared to
the national average of 51 percent. Our state has 13.6 percent of
our population over the age of 65. The national average of seniors
over 65 per state is 12.7 percent. Oklahoma also has 27 percent of
people under the age of 17 as compared to the national average of
26 percent. We have the third fewest women in the labor force of
any state with 43.8 percent whereas the national average of women
in the labor force is 48 percent. All of these factors contribute
to our relatively low number of workers. If Oklahoma's labor force
was at the national average, an additional $1.9 billion could be
added to the total personal income of our state, an additional
$557 per capita in income.
- Oklahoma is much more rural than the average
state. Only 60 percent of Oklahoma's population lives in
metropolitan areas, whereas the national average of population in
metropolitan areas is 80 percent. Generally, incomes are much
lower in rural areas than in metropolitan areas. The city of Tulsa
for example, has a higher PCPI than the national average. Tulsa's
PCPI averages $24,147 (Tulsa Chamber of Commerce). If Oklahoma was
urbanized to match the national average, more than $3 billion
would be added to state income or $900 per capita.
- Oklahoma's cost of living index is well below
the national average mainly due to low housing and energy costs.
This cost of living advantage translates into an additional $6
billion or $1800 per capita.
- Oklahoma has an education and training gap.
Data shows that in high earning states, workers receive larger
increments in wages for completing additional levels of education.
To bring our educational attainment ratios to national levels, 3.7
percent of Oklahomans would need additional education. If this
education attainment level was met, an additional 34,600 people
with Bachelor's degrees and $1 billion would be added to
Oklahoma's income, $294 per capita.
Oklahoma Stats:
Roundup of Economic and Financial Data
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Oklahoma's economy continues to significantly
outperform the national economy on the employment front. May
unemployment in Oklahoma was 3.6 percent compared to 5.4 percent
nationally. The current U.S. unemployment rate is considered low by
national standards.
According to the nationally recognized
Blue Chip Job Growth Update, Oklahoma created 2.62 percent more jobs in April 1997
than the previous month ranking it 14th in overall job growth
nationally. Oklahoma ranked 13th nationally in job creation for the
past year, according to the Blue Chip Job
Growth Update, and 7th in manufacturing
job growth.
Bank savings rates for Oklahomans moved up by 1
percent in the latest data available and the General Business Index
prepared by the OU Center for Economic and Management Research
continued a long, steady increase signaling a healthy economy.
Published by Oklahoma State Senate Staff. Tony
Hutchison, Policy Advisor, Eren Hays, Research Assistant and Sara
Lassiter, Administrative Assistant.
