A glimpse at the state of Kern's economy
| Friday, Nov 20 2009 10:36 AM
Last Updated Friday, Nov 20 2009 10:39 AM
Here are some nuggets on the local economy from Abbas Grammy's reports in the Kern Economic Journal, 2009 third quarter issue, which just came out:
Personal income: Kern County's personal income (in constant 1996 dollars) increased from $15.35 billion in the second quarter to $15.39 billion in the third quarter of 2009. The county's economy gained nearly $45 million of income this quarter. However, the county's personal income was $305 million less than that of the third quarter of 2008.
Growth of personal income: After falling 2.0 percent in the previous quarter, Kern's economy grew at an annual rate of 1.2 percent this quarter. Compared with four quarters ago, economic growth accelerated at a rate of 3 percent.
Personal income per worker: By and large, benefits from economic growth were offset by costs of labor force growth. As a result, personal income per worker fell $100 from $40,500 in the second quarter to $40,400 in the third quarter of 2009. Likewise, personal income per worker was $2,000 less than that of four quarters ago.
Labor force: The civilian labor force increased by 2,500 workers from 378,900 in the second quarter to 381,400 in the third quarter of 2009. Likewise, the labor force has increased by 10,900 workers since the third quarter of 2008.
Housing price: In the third quarter of 2009, Kern County's housing market showed signs of improvement. The median sales price for all residential units appreciated $4,900 (or 3.9 percent) from $127,100 to $132,000. However, the county's median housing price has plunged $50,400 (or 27.6 percent) since the third quarter of last year.
In Bakersfield, the median housing price appreciated $8,400 (or 6.5 percent) from $128,800 to $137,200.
However, the city's median housing price was $53,700 (or 28.1 percent) lower than that of four quarters ago.
Housing sales: In Kern County, 104 fewer homes were sold as the number of residential units sold declined from 3,394 in the second quarter to 3,290 in the third quarter of 2009. However, the number of units sold this quarter was 100 more than that of four quarters ago.
In Bakersfield, 78 fewer homes were sold as sales of all residential units fell from 2,478 in the second quarter to 2,400 in the third quarter of 2009. Since the third quarter of last year, sales have fallen by 62 units.
Housing affordability: The housing affordability indicator declined slightly from 28.3 percent in the second quarter to 28.0 percent in the third quarter of 2009. However, a median-priced home in Kern County was 6.2 percent more affordable this quarter relative to four quarters ago.
Price of oil: The average price of San Joaquin Valley heavy crude was up $7.48 (or 14.2 percent) per barrel from $52.70 in the second quarter to $60.18 in the third quarter of 2009. However, the average price of crude oil was down $45.37 (or 43.0 percent) per barrel relative to the third quarter of 2008.
Price of gasoline: In the Bakersfield metropolitan area, the average retail price of regular gasoline per gallon rose 40 cents (or 14.9 percent) per gallon from $2.68 in the second quarter to $3.08 in the third quarter of 2009. Compared with the third quarter of last year, the average gasoline price was down $1 (or 24.5 percent).
-- Cal State Bakersfield economics professor Abbas Grammy is the publisher and managing editor of the Kern Economic Journal. The entire publication is at csub.edu/kej.
