Local economy a mixed bag:
Improving in some areas, behind in others
Description of indicator:
An overall picture of the economic health of Fresno County and the San Joaquin Valley.
Why is it important?
Positive job growth is the key goal of the Regional Jobs Initiative (RJI) as a way to lower unemployment and poverty rates. In order to accomplish this goal, higher paying jobs must be created to improve the region’s income levels, which, in turn, will increase money reinvested into the local economy and improve the quality of life for residents. By examining job growth sector-by-sector, the RJI is able to compare the region’s major industries and see which are growing. Monitoring this growth will help guide job-training programs, as well as other types of infrastructure required to prepare a highly skilled workforce to meet expanding industry needs.
How are we doing?
Throughout 2005, job growth varied within the RJI-targeted industries and the San Joaquin Valley. Construction universally led the way, while manufacturing did well in Fresno County compared to the Valley as a whole. Food processing decreased in Fresno County, but increased in the Valley. Overall, target-industry growth was positive with growth industries helping to balance those with less activity than expected. In addition, unemployment rates decreased by 2.6% in Fresno County and 2.8% in the San Joaquin Valley — more than double the rate of decrease for California as a whole.
Although the median household income for Fresno County and the Valley continues to rise, it is not increasing as quickly as California’s. In order for poverty levels to significantly decrease and to see an increase in the region’s quality of life, Fresno County’s median household income needs to increase at or above the rate of California as a whole.
Fresno’s plan for the future:
There are many organizations working to improve Fresno County’s economy. One of the major efforts targeted at improving economic viability is RJI’s five-year implementation plan aimed at creating 25,000 to 30,000 net new jobs in the Fresno region, while significantly changing the way Fresno does business and improving the region’s quality of life. The RJI is in the beginning of its third year. The following is a snapshot of its major projects:
• Organizing leaders from 10 different target industries “clusters” that work together to improve the local business climate for the industry.
• Addressing bottlenecks of economic growth through “competitive advantage” task forces in such areas as physical infrastructure, workforce development, technology infrastructure and innovation.
• Encouraging innovation and entrepreneurship through various partners such as the Lyles Center for Innovation and Entrepreneurship at Fresno State, the Central Valley Business Incubator and the Small Business Development Center.
• Assisting the Fresno County Workforce Investment Board in assessing and improving the capacity of the region’s workforce training programs for targeted industries.
• Partnering with local government agencies to streamline customer service processes for business endeavors that will contribute to economic growth.
• Along with others throughout the region, working with the Federal Interagency Task Force and the California Partnership for the San Joaquin Valley in aligning various local, regional, state and federal efforts to address regional economic development issues.
• Encouraging and facilitating the development of a wireless metropolitan area network in the Greater Fresno Area.
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