Industry Analysis

Employment

During the first decade of the 21st Century, employment levels in the LCLG Region remained above or consistent with State and National trends. However, since the 2008 Recession, the LCLG Region employment base has grown by only 1%, while the State grew employment by 12% and the country by 14%.

The economic impact resulting from the COVID-19 pandemic led the LCLGRPB to undertake a regional Economic Resiliency Plan, with support from the EDA, to develop strategies that can improve economic resiliency from future economic disruptions. Additional information can be found in the Economic Resilience section of this plan.

Between Q1 2020 and Q1 2021 shows a 6% decline (6,275 jobs) in regional employment. These employment losses in each county ranged from a low of 5.9% in Washington County and a high of 7.1% in Warren County.

Employment opportunities are concentrated in Warren County (35%) and Clinton County (34%), followed by Washington County (15%), Essex County (14%), and Hamilton County (2%).

Employment distribution

The predominant industry sector in the LCLG Region is Government, providing approximately 21% of all jobs. This is followed by Health Care and Social Assistance (14%), Retail Trade (13%), Accommodation and Food Services (11%), and Manufacturing (9%).

The average earnings per job in the region is $55,751, which is far below that of New York State’s average earnings per job, $88,755.

employment trends

Between 2015 and Q1 2020, the LCLG Region added a net 690 jobs. The majority of these jobs were in Government and Health Care and Social Assistance. Retail Trade and Administrative/Support and Waste Management Services suffered the greatest job losses during that same period.

An assessment of 4-Digit NAICS level data, for the period between 2015 and Q1 2020 was completed to identify employment trends. Education and Hospitals (9036) provides nearly 8,400 jobs in the region, followed by Restaurants and Other Eating Places (7,070 jobs).

Of the region’s top 20 industries, nearly half lost jobs between 2015-2020, particularly Pulp, Paper, and Paperboard Mills, which lost 487 jobs.

An assessment of 6-Digit NAICS level data, for the period between 2015 and Q1 2020 was completed to identify employment trends. Employment in the top 6-digit industries is driven by the following subindustries: Elementary and Secondary Schools; Local Government; State Government (driven in part by State University of New York and State Correctional Facilities); General Medical and Surgical Hospitals (driven in part by Glens Falls Hospital); and Full-Service Restaurants.

sector output

Economic performance in the LCLG Region can be measured by Gross Regional Product (GRP), or the monetary measure of the market value of all goods and services produced, in the LCLG Region.

In the region, the Government sector provides the greatest contribution to GRP (20%). This is followed by Manufacturing (16%), Health Care and Social Assistance (11%), Retail Trade (10%), and Accommodation and Food Services (6%).

Among these industry sectors, Manufacturing offers the greatest potential for export opportunities from the LCLG Region. In addition to offering export benefits to the region, the Manufacturing industry provides the 4th highest average annual earnings ($72,079) in the region.

Average annual earnings of those in the top 5 industry sectors contributing to GRP, range from a high of $76,824 (Government) to a low of $30,176 (Accommodations and Food Services) – a range of about $46,650.

As identified in the table above, Manufacturing is among the top (#2) contributors to Gross Regional Product and offers some of the highest average annual earnings in the LCLG Region. However, Manufacturing only accounts for 9% of the region’s employment.

Three of the top five employing industries (Health Care and Social Assistance, Retail Trade, and Accommodations and Food Services) offer annual earnings of less than $40,000. An analysis of earnings by industry sector on a sub-region basis, finds even greater variation in the average annual earnings for these top five employing industries (see below).