Banking and Financial Institutions
The Cleveland Metropolitan Statistical Area
By Kyle Fee and Bob Sadowski
The Cleveland metropolitan area is located along the southern shores of Lake Erie . Counties within the MSA include Cuyahoga, Geauga, Lake , Lorain , and Medina . Ever since the turn of the 20 th century, Cleveland has been recognized as a manufacturing center and despite the sector’s downturn, the region retains a high concentration of manufacturing jobs. In 2006, Cleveland ’s concentration of manufacturing employment was 31 percent higher than the nation as a whole. The location quotient shows the percentage above or below the national average a given industry in geographic area represents. A value of one indicates that the sector mimics the national industry share.
In recent years, the region has built an international reputation as a major player in the health care sector. Employment within the sector has grown rapidly to the point where health care edged past manufacturing as Cleveland’s largest sector employer. The region’s employment concentration in health services and education is about 22 percent greater than is found nationally. However, the rise in the number of health care jobs is not characteristic of the overall employment picture.
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Since the employment turnaround began after the last recession, total non-farm employment in the U.S. grew by over six percent. In Cleveland, employment growth has been flat. Decomposing the employment data into manufacturing and non-manufacturing sectors, we see that the U.S. outperformed the local area in both categories. Since the last business cycle peak through 2006, the U.S. shed 16.6 percent of its manufacturing jobs compared to Cleveland’s 23.4 percent loss. Likewise in all non-manufacturing sectors, employment in the U.S. rose 6.6 percent while Cleveland’s declined 1.4 percent.
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