Department of Economics
  at Ithaca College

February 2009

The Index of Economic Activity in Tompkins County climbed 2.66 percent in February to a level of 151.89 from a revised mark of 147.95 in January. The gain made up for a dip in the first month of the year. Hefty gains in employment and home sales outweighed declines in retail sales, air traffic, and building permits. Help wanted advertising held steady.

On a seasonally adjusted basis, the number of jobs in Tompkins County surged by 1,400 to 64,400 in February. Employment  in the health and education services sector was 600 persons higher than a year earlier. It is good to see our bread and butter industries doing well despite job declines in other sectors. However, the unemployment rate in Tompkins County was 5.9 percent. That compares with 3.5 percent a year ago. It is the County’s highest unemployment rate since 1990. The unemployment rate in New York State was 8.4 percent in February, compared to 8.9 percent nationally.

The volume of retail sales in Tompkins County dipped 2.61 percent in February. Compared to February 2008, retail sales were off 12.74 percent. Employment in the retail sector was down to 4,800 from its typical amount of 5,100.

The number of passengers arriving and departing from Ithaca Tompkins Regional Airport descended 4.74 percent to 15,797 from 16,583 in January. Compared to February 2008 air traffic was up 4.66 percent.

Residential building permits issued in Tompkins County fell 48.89 percent in February. Building permits have a tendency to swing widely from month to month. Nevertheless, the numbers indicate that plans for new home construction are down significantly from last year.

Sales of existing homes soared 92.14 percent in February when 88 homes were sold in Tompkins County on a seasonally adjusted basis. This compares with 46 homes in January and 85 in February 2008. The average sale price was $185,200 compared with $204,000 a year ago. The median sale price was $138,500 compared to $158,500 a year ago.

Help wanted advertising picked up by 4.21 percent in February. Gains in help wanted advertising can signal more demand for workers in the future.

February’s bounce is encouraging, especially the fact that employment in education and health services came back after a poor showing in January. Economic forecasters expect the national economy to hit bottom some time in this summer. Nevertheless, unemployment typically continues to rise for many months after the end of a recession.

Maintained by Elia Kacapyr (kacapyr@ithaca.edu)
Last updated 03/027/09