About MU Extension


Significant Trends
Affecting the State and Its Localities

Despite the diversity of locations, some general trends are producing state, regional and local effects. It is necessary for University of Missouri Extension program planning and delivery to assess how general trends are affecting each region of the state. This environmental scanning and analysis function will be strengthened to include development of a "state-of-the-county" format, making local information and change available throughout the state. Following are recent "state of the state" trends identified from data-based environmental scanning:

  • Regional Centers
  • Employment
  • Labor Shortages
  • Economic Expansion
  • Devolution
  • Residential Preference
  • Land Use
  • Transfer Payments
  • Diversity

Regional centers are increasingly more important in the lives of rural Missourians. Regional centers are towns of about 10,000 or greater population that attract workers, shoppers and seekers of health and other professional services from surrounding counties. About 15 such centers exist in the state, and it is likely that new economic and population data will confirm a strong and growing role of regional centers. In 1990, there were 65 Missouri counties in which more than 25 percent of employed residents held jobs outside their county of residence, a trend likely to become more prominent.

Employment has been increasing more rapidly than population. Employment in Missouri increased by 15.8 percent during the 1990s, far greater than the 9.3 percent rate of population growth. Growth in employment began to increase rapidly during the 1980s and continued through the 1990s. Women entered the work force in large numbers. However by the mid-1990s, as employment growth accelerated, relatively few women were left to meet the growing demand. Consequences included continuation of a relatively great high school dropout rate as students left school for employment and a significant increase in immigration among persons coming to Missouri for work.

The future labor force will face shortages. With the baby boomers beginning to reach retirement age by 2008, coupled with the currently small Missouri population in the 18-35 age cohort, it is likely that there will be a labor shortage, especially in higher-skill and higher-wage jobs. In response, it is likely that the currently employed labor force will continue employment to a much more advanced age. It is probable that telecommunication technology will replace travel for many participants in the workforce and that a larger proportion of the labor force will become telecommuters. Assuming that pattern of employment occurs, there will be corresponding change in where economically active persons choose to reside.

Economic expansion, significant through the 1990s, may or may not continue. Missouri's gross domestic product increased by 23 percent (in constant dollars) from 1990-97. Expansion continued at the same rate during the remainder of the 1990s. The number of private-sector employers increased from 129,606 in 1990 to 144,874 in 2000 - an increase of 11.8 percent. Businesses employing more than 20 workers increased by 18 percent. New business formation was greatest in places with the greatest population growth attributable to immigration. The number of non-farm proprietors (which includes self-employed) increased from 398,000 in 1990 to 495,000 in 1999 - an increase of 24.4 percent.

Local governments are affected by devolution and changes. Missouri ranks seventh nationally in the number of local governments. States with greater numbers of local governments include California, Texas and Pennsylvania - which have much greater populations. Missouri ranks high in the number of counties, school districts, municipalities, special districts, etc. The number of special districts very likely will continue to increase as local governments seek ways of meeting emerging needs. Changes in the population distribution are placing greater responsibilities on local governments, but so too is national devolution, which is passing on more programs and responsibility for distribution and management to local governments.

New trends in residential preferences challenge local governments. During the 1990s, metropolitan areas (e.g., Kansas City, St. Louis and Springfield) continued to expand into the countryside. Concurrently throughout the state, population living outside the city limits of any town (open country) increased by 12.8 percent statewide, while population living within city and town limits increased by 8.4 percent. This trend is creating new challenges for local governments, which are confronted with problems of water quality, solid waste disposal, emergency services, etc.

Land use shifts affect agriculture. A growing proportion of Missouri land has been shifting from agricultural to residential. More than 80 percent of Missouri's 100,000 rural places classified as farms can best be described as places to live rather than places to make a living. These trends will continue to have an influence on Missouri agriculture and will have an impact on local tax revenues.

Health care systems are dependent on transfer payments. Transfer payments (entitlements) are a major source of personal income and a financial basis of support for health care providers, especially in rural areas. In 2000, transfer payments accounted for more than 20 percent of total personal income in about two-thirds of Missouri counties. The total value of those transfer payments was in excess of $22 billion - about 17 percent of Missouri's total economy. Forty percent is tied to Medicare and Medicaid. If a person age 65 or older moves to another locality, they take their entitlement with them. If an older person dies, Medicare is lost to the locality. This trend is very important, especially to rural north Missouri.

Increased diversity affects local communities. According to the 2000 Census, every Missouri county has at least some African-American population, some Asian population, some American Indian population, some mixed-race population and some Hispanic population. During the 1990s, the African-American population increased by 15 percent, American Indian population by 30 percent, Asian population by 56 percent and Hispanic population by 92 percent. Missouri's racial minority population increased from 14 percent of total population in 1990 to 17 percent in 2000. The racial and ethnic population has been increasing in every U.S. state and will likely continue. Rural and urban Missouri will continue to become more racially and ethnically diverse.