Alabama retailers rang up taxable sales totaling $4.0 billion in December 1999, a 4.9 percent increase over the $3.81 billion tallied in December 1998.  Nationally, monthly retail sales rose 11.0 percent for December 1999 compared to December 1998.  In Alabama, December sales gains were strongest in apparel, up 14.6 percent; automotive, which gained 7.2 percent; drug stores, with sales climbing 16.0 percent; and miscellaneous retail, where sales rose 13.6 percent.  December 1999 sales at general merchandise stores were 5.6 percent higher than a year ago.

For 1999 as a whole, Alabama retailers reported $39.7 billion in sales, up 4.7 percent from 1998.  However, Alabama’s annual increase was just over half the national gain of 9.1 percent.  Statewide, apparel sales showed the sharpest rise during the year, climbing 12.4 percent.  Automotive sector sales posted a gain of 8.3 percent during 1999, while sales of lumber and hardware rose 8.2 percent.  The automotive and lumber and hardware sectors were among the U.S. retail sales growth leaders during 1999, with increases of 11.8 and 10.6 percent, respectively.

Across Alabama, retail sales in the miscellaneous category were up 9.9 percent in 1999.  But sales at eating and drinking places increased a modest 3.5 percent for the year, while general merchandise sales rose just 3.2 percent.  Reported food store sales declined by 1.4 percent for 1999 compared to 1998.

CBER calculates monthly retail sales from reports received by the Alabama Department of Revenue.

A periodic disaggregate survey of multi-county firms is administered by the Department of Revenue to collect information needed to allocate sales to individual counties.  CBER’s county-level data series is currently based on the 1996 survey.  Beginning with January 2000 data, results of a 1999 survey will be incorporated.  More frequent disaggregate surveys are planned, enabling a more accurate and continuous county-level retail sales series.  State-level retail sales calculations are not affected by disaggregation.

Carolyn Trent with assistance from Kathryn Rivers

Population estimates for Alabama cities and towns in 1998 ranged from seven people in Gantts Quarry to 252,997 in Birmingham.  Four cities, Birmingham, Mobile, Montgomery, and Huntsville, had populations of more than 100,000.  Forty-nine cities were between 10,000 and 100,000, with nine having populations of more than 30,000.  There were 179 cities and towns with populations of 1,000 to 10,000, and 212 towns with less than 1,000 inhabitants.  We examined fiscal year 1998 city financial reports for a sample of eleven medium-size cities, using revenue and expenditure classifications for governmental accounting, auditing, and financial reporting.

About half of Alabama’s medium-size cities had budget surpluses in 1998.  However, those cities with red ink had deficits that were much deeper than the heights of the surpluses of the other cities.  These deficits seem to be the result of large capital outlays.  Hopefully, even with large capital expenditures, more of our cities will run budget surpluses enabled by the current economic climate.

City revenues come from taxes, charges for services, intergovernmental transfers, licenses and permit fees, fines and forfeitures, interest, and miscellaneous revenues.  From their revenues, cities make expenditures for public safety, public works, and other social services.  There are additional charges for capital projects, debt service, running the government, and miscellaneous charges.

Not surprisingly, taxes are the major source of revenues, about 58 percent.  License and permit fees are the next major component of revenues, and raise about 15 percent on average.  Charges for services and intergovernmental

Social services average 61 percent of total city expenditures, but the range among cities is from 48 to 81 percent.  Running city governments averages 12 percent of expenditures, ranging between 5 and 22 percent.  The remaining 27 percent of total expenditure is allocated to capital outlay, debt service, and miscellaneous expenses.  Expenditures on other services (health and welfare, culture and recreation, education, and economic and urban development) have the widest range, 3.0 to 44.6 percent.

Interestingly, public safety takes up about 25 percent of expenditures, while only 21 percent is spent on health and welfare, culture and recreation, education, and economic and urban development.  If communities could reduce crime, perhaps more attention and resources could be devoted to providing good health, schools, libraries, parks, job training, and other quality-of-life services.  Alternatively, cities could raise more revenues and devote the additional funds solely to providing social services and raising the quality of life.  This look at our medium-size city budgets suggests that if we expect city governments to provide citizens a higher quality of life, the citizenry must expect to pay for it.

What is really impressive is that about half of the cities spend less than 10 percent on running city governments.  In addition, more than a third spend greater than 70 percent of total expenditures on social services.  These are laudable achievements, and for them, kudos to our city governments.  About a fifth of the cities spend more than 20 percent on their governments, and another fifth spend less than 50 percent on social services.  For these last expenditure shares, we must be concerned.

Samuel Addy

Sources: FY 1998 city financial reports; Alabama Department of Public Examiners; and Center for Business and Economic Research, The University of Alabama.

Across Alabama, the number of businesses selling new and/or used cars rose to 1,106 in 1997, a 25 percent increase over the 885 car dealers in the state in 1992.  The number of eating and drinking establishments jumped by 812 to 6,140, a 15.2 percent gain, while the number of businesses selling furniture, furnishings, and consumer electronics and appliances rose to 2,043, an 11.9 percent increase.  Slight declines were reported in the number of food stores, drug stores, and apparel stores.

Data from the 1997 economic censuses were the first based on the North American Industry Classification System (NAICS) rather than the Standard Industrial Classification (SIC).  To permit comparison with the 1992 economic census, the Census Bureau has released summary state and national statistics for 1997 recalculated using SIC categories.  These comparative statistics for all industry categories can be found at on the Internet at www.census.gov/epcd/ec97sic.  The Census Bureau’s economic censuses are based on a survey of firms in each industry.  Thus, these retail data may differ from retail sales data tabulated by CBER.

Carolyn Trent

The city of Hoover gained more new residents than any other Alabama city from 1990 to 1999—20,317 people, according U.S. Census Bureau data released by the Alabama State Data Center at The University of Alabama.

Annette Watters, center director, said the census data also show that while Birmingham has retained its status as the largest city in the state, Birmingham and Gadsden were also the only two cities in Alabama’s Top 10 list that lost population through the decade. Birmingham lost about 16,480 people during the 1990s and Gadsden lost about 1,370.

“Huntsville was a close contender to Hoover in terms of growth,” noted Watters, whose center falls under the direction of the UA College of Commerce and Business Administration and its Center for Business and Economic Research. “Huntsville gained 17,500 people during that time period, going to a population of 160,372.

“Madison and Alabaster were also double-digit gainers in the nineties,” she said. “Madison gained 12,490 and Alabaster gained 10,670, in round numbers.”

However, Watters explained that a surface glance at the numerical growth doesn’t tell the entire story. While Hoover gained the most people, Helena had the biggest percent increase. Helena went from a mere 4,454 in 1990 to 10,950 in 1999—a 145.8 percent increase. Other cities in the state that have grown by more than half again what they had at the 1990 census are Madison, Millbrook, Alabaster, and Pelham. Hoover, Trussville, Fairhope, and Moody each grew more than 40 percent in nine years time.

Watters said, “Population growth of that magnitude puts pressures on the city. Government leaders have to keep up with services and current residents have to make accommodations for new residents. Whether it is a small town that is growing quickly, or a large city that is booming, fast growth usually brings both good and bad news.”

Not every prominent Alabama city saw growth in the last decade. Tuskegee, Fairfield, Homewood, Anniston, Prichard, Selma, and Bessemer, in addition to Birmingham and Gadsden, saw noticeable population declines.

Watters pointed out that these numbers are estimates for the year 1999. Data from Census 2000 have not yet been released. “When we get the actual population counts in a few months, we’ll have a more accurate idea of how our cities and towns are doing. These population estimates will be used until we have more accurate data from the recently completed census.”

The 1999 estimate for every incorporated city or town in Alabama is available from the Alabama State Data Center at UA.

The University of Alabama’s Culverhouse College of Commerce and Business Administration, founded in 1919, first began offering graduate education in 1923. Its Center for Business and Economic Research was created in 1930, and since that time has engaged in research programs to promote economic development in the state while continuously expanding and refining its base of socioeconomic information.

Ten Largest Cities in Alabama

Alabama’s export statistics for 1999 could have been much lower if not for a 437.2 percent increase in exports to Austria. Since 1998, when Mercedes-Benz decided to assemble the M-class vehicle at their plant in Graz, Austria as well as at the Vance, Alabama plant, there has been a phenomenal increase in exports from Alabama to Austria.

Ahmad Ijaz

The youth labor market has recently captured the public’s attention for several reasons. Governments and businesses are interested in the transition from school to work. Teachers and counselors study the “job shopping” process through which youths settle into stable career employment. Labor market analysts are interested in the consequences of youth unemployment and racial differences in youth unemployment. Economists have analyzed the implications of statutory minimum wages. What are some of the findings from these studies?

High School Students. High school students tend to work more hours the older they are. That is, an 18-year-old student with a job might work close to 22 hours a week, whereas a 16-year-old might work only about 16 hours a week. This rise with age occurs among both males and females.

The seasonal variation in high school student employment within the calendar year is even more dramatic than the between-age-group trend. Employment activity rises sharply during the summer months and drops off during the school year. This within-year rise in employment during the summer weeks occurs at all ages for both males and females, although male students are more likely to be employed and to work more hours per week when they are employed.

The academic calendar is not the only factor driving summer employment by high schoolers. Seasonal shifts in labor demand also contribute. High school students tend to work at occupations and in industries that have busy summer seasons. Fully one-fifth of employed high school students work in food service, usually as servers, buspersons, dishwashers, cooks, and so on. The other leading occupations employing high school students include stock handlers (primarily in grocery stores), sales clerks, and recreation and amusement workers. Most high school students working in private households appear to be babysitters.

High School Dropouts. In sharp contrast to the pattern for high school students, the employment activity of young high school dropouts exhibits little seasonal variation. The large summer increase in high school student employment does not make much difference in the employment of high school dropouts.

There is, however, a very large difference in employment rates between male and female high school dropouts. In a typical week, roughly two-thirds of male dropouts are employed while only about one-third of female dropouts have a job. Moreover, employed male dropouts work three to seven hours more per week than employed female dropouts. The employment difference between male and female dropouts is much greater than the male-female difference between students. In fact, female dropouts are even less likely to be working than female students. Among those who are working, however, female dropouts work more hours per week than do female students.

Are dropouts working in the same jobs as similarly-aged students? By far the most common occupation for dropouts is food service worker—the same as for high school students. But there are also differences between the two groups. Dropouts don’t concentrate their jobs as intensely in a few sectors of the economy as do students. For example, there is a bigger percentage of dropouts than students working as cleaning service workers and a much smaller percentage working in private households.

Implications for Alabama Business. The Alabama Commerce Commission recently reported that the tourism industry provides the State of Alabama with one of its best returns on investment and recommended pursuing additional major attractions within the state. Youth workers will provide an important source of labor supply for an enhanced tourism industry. Young people have a history of success at jobs in entertainment, recreation services, eating places, and retail establishments.

The retail sector of Alabama’s economy has been a growth engine in recent years. If retailing continues to prosper, it will continue to rely on young workers to be sales workers, cashiers, and stock persons.

Young workers don’t always have a long employment tenure with their employers. They move on to other stages of their lives. The hope is that the work experiences they have as teen-agers will contribute positively to their futures. An entry-level job can instill a strong work ethic, give a young person a career direction, and teach many lessons not gained in the classroom. Alabama needs its youth workers, and young people need Alabama businesses.

 Annette Jones Watters    

Excerpted in part from Gerald S. Oettinger, “Seasonal and Sectoral Patterns in Youth Employment,” Monthly Labor Review, p. 6-11, U. S. Department of Labor, Bureau of Labor Statistics.