Economic Indicators for Greater Cheyenne

1 Economic Indicators FOR Greater Cheyenne Volume XXXII - Number 3 September 2016 Wyoming Center for Business & Economic Analysis @ LCCC 1400 East College Drive Cheyenne , WY 82007307-778-1151 Table of Contents Front Matter Preface .. ii Economic Indicators for the Second Quarter of 2016 Overview .. 2 Labor Market .. 4 General Business Activity .. 8 Government Finances .. 12 Financial Sector .. 14 Residential Construction .. 18 Commercial Property Vacancies .. 24 Residential Housing Market .. 26 Apartment Vacancies .. 29 Demographics and Tourism .. 32 Detailed Tables .. 35 Cheyenne /Laramie County Profile .. 39 Data Sources .. 41 Editor .. Denise Rogers Research Assistance.

2 Jo McGuire Editorial Assistance .. O Gara Cover Design .. Cheyenne LEADS The articles appearing in this publication represent the opinions of the author and do not necessarily reflect the views of funding agencies and organizations. Duplication or quotation of material in this publication is welcomed; we request that you credit WCBEA WCBEA Phone: Editor email: Staff email: Website: Mailing Address: Wyoming Center for Business and Economic Analysis @ LCCC 1400 E College Drive Cheyenne , WY 82007 ii Preface Hard copies of this publication are no longer available. This publication and past publications are available in PDF format on our website: Sign up for notification of publication releases at or send us an email at WCBEA @ LCCC sincerely appreciates past and continuing cooperation of the entities listed in our data sources throughout the report.

3 This report would not be possible without the financial support of the Cheyenne -Laramie County Economic Development Joint Powers Board and Cheyenne Economic Indicators Analysis 2 Economic Indicators for the Second Quarter 2016 Overview The data from the second quarter of 2016 confirm that Laramie County s economy continued to weaken. This decline remains relatively modest compared to other counties in the state, and the state as a whole, largely because our local economy is protected by the stabilizing influence of significant public sector employment. Again this quarter, labor market Indicators in Laramie County were down compared to a year ago. From the second quarter of 2015 to the second quarter of 2016 there was a decline in the number of jobs, and an increase in the number of unemployed workers.

4 While we have also seen an increase in the unemployment rate over the last year, it is important to remember that Laramie County s unemployment rate remained below both the national and the state unemployment rates through the second quarter of 2016, and is still at or below what economists call full employment. The general level of Economic activity as measured by retailed sales -- showed a decline. Estimated retail sales were down percent from one year ago and down percent from the first to the second quarter of 2016. Oil production was up in Laramie County in the second quarter of 2016 compared to both the first quarter of this year ( percent) and one year ago ( percent). The number of active wells in the county also increased -- by percent over the last year.

5 The number of spuds defined as a newly drilled oil well is an indicator of future activity in this sector. In 2014 there were 115 spuds in Laramie County. In 2015 the number of spuds fell to 62 ( percent) and year-to-date 2016 only three spuds have been drilled. Both sales tax collections and tax receipts to local government entities declined over the last year. Tax collections declined by percent and tax receipts declined percent from the second quarter of 2015 to the second quarter of 2016. As Laramie county officials have indicated, sales tax revenue from both mining operations and wholesale trade, (largely related to the mining activity), was down significantly. In Laramie County mining operations are largely made up of oil and gas activity.

6 Residential construction was relatively robust while the number of single-family building permits fell over the last year in the City of Cheyenne , there was evidence of a significant level of residential construction in the pipeline . According to the City of Cheyenne Planning Department, there were approximately 600 single-family platted lots for which the plat was approved from 2015 through the first quarter of 2016. The Laramie County Planning Commission reported that about 45 single-family platted lots received plat approval in 2015, and an additional 50 single-family platted lots were approved in the first two quarters of 2016 in the County. In addition to this single-family housing development, building permits for a total of 93 multi-family apartment units were issued in the second quarter of 2016.

7 3 There was a significant increase in the value of authorized construction in the City of Cheyenne in the second quarter of 2016 the single largest part of this increase was the almost $12 million for the renovation of the Herschler Building. The continued threat to the local economy is the impact of sustained low energy prices and their effect on the state economy. The state of Wyoming has absorbed significant budget cuts for the biennium that began on July 1, and faces the prospect of additional cuts when the Legislature convenes in January 2017. This report contains detailed information and analysis on a wide range of Economic Indicators for the Greater Cheyenne area. Please feel free to contact the WCBEA@LCCC with any questions.

8 4 Labor Market The June 2016 Economic Indicators report described a weakening labor market for the first quarter of 2016. Data from the second quarter of 2016 confirmed that, again this quarter, labor market Indicators in Laramie County are down compared to a year ago. From the second quarter of 2015 to the second quarter of 2016, Local Area Unemployment Statistics (LAUS) data showed a decrease of 1,337 jobs ( percent) and Current Employment Statistics (CES) data a decrease of 200 jobs ( percent). According to the LAUS data, 460 jobs were lost from first quarter 2016 to second quarter 2016 ( percent), while CES data showed an increase of 533 jobs ( percent). This appears contradictory, but it s important to remember the difference between the LAUS data and the CES data.

9 LAUS data are based on a survey of households and CES data are based on a survey of employers. CES data reflect a count of jobs, not workers. The increase in jobs over the last quarter may have been an increase in multiple job holding, one person with more than one job. The number of unemployed workers rose over the last year, from 1,796 in the second quarter of 2015 to 1,990 in the second quarter of 2016 ( percent), but fell from the first quarter to the second quarter of 2016. The number of unemployed workers fell from 2,249 in the first quarter of 2016 to 1,990 in the first quarter of this year ( percent). The unemployment rate for Laramie County rose over the last year, from in the second quarter of 2015 to in the second quarter of 2016.

10 However, the unemployment rate fell from percent in the first quarter of 2016 to percent in the second quarter of 2016. The unemployment rate reported in Table 1 is an average monthly unemployment rate for the quarter. For the second quarter of 2016 it is worth noting that the monthly unemployment rate for both April 2016 and May 2016 was percent, but this rose to percent in June. It s too early to know if this is anything more than an isolated one month increase. Over the last quarter initial unemployment claims were down and the number of help wanted ads were up. Initial unemployment claims fell from a monthly average of 61 in the second quarter of 2015 to 56 in the second quarter of 2016 ( percent).