wage manufacturing is replaced by low wage service
activity. Wages per dollar of output dropped one
cent in Alabama to 57 cents in 2000 while rising by a
cent to 58 cents for the nation.
Alabama
Development
1990 - 2000
Many interested parties have been looking at recent
federal statistical data to see the latest detailed demographic, social, economic, and housing data on
Alabama. One use of the data is to see how far we
have come over the last decade. This short article
uses six selected socioeconomic variables from two
different federal agencies to gauge the state’s
progress: output per worker (the value of goods and
services produced in the state), average wage, per
capita income, population growth, child poverty, and
educational attainment.
From 1990 to 2000, Alabama output per employee,
average wage, and per capita income increased. This
is very good news, isn’t it? To measure our development, growth in these variables must be compared to
those of the nation, or some other state. Compared
to national averages, all three economic measures
fell. This retrogression cannot be attributed solely to
the state’s slower population growth. True, more
people can mean stronger demand, more business
startups, a larger labor force, and so on. However,
the relative fall in the economic variables is largely
due to the change in economic structure, as high
On the plus side, although child poverty and educational attainment in Alabama are still worse than
national averages, they showed better improvements.
The percentage of Alabama children in poverty
dropped by 2.9 percent, from 24.1 percent in 1989 to
21.2 percent in 1999, compared to a drop of 0.9 percent for the nation. Educational attainment, based
on the percentage of the population age 25 and over,
shows an 8.4 percent increase for the state and a 5.4
percent increase for the nation.
Of course, a comprehensive study of the state’s
development must consider many more economic,
social, demographic, and institutional indicators.
State-level data often hide stark differences at more
detailed geography, such as county levels. Alabama
has pockets with high levels of economic activity and
large expanses with very low levels of economic
activity where both public and private services are
lacking for many. The selected indicators show
mixed development for Alabama. But with strong
leadership, a highly productive workforce, and the
recent successful recruitment of automotive and
related industries, this author is very optimistic about
the state’s prospects.
Samuel Addy, Ph.D.
Alabama - United States Comparisons
Output per Employee ($)
1990
2000
United States
Alabama
Percent of U.S.
40,929
34,706
85%
59,365
49,365
83%
Population Growth
1990-2000 Percent Change
United States
Alabama
Percent of U.S.
13.2
10.1
76%
Average Wage ($)
1990
2000
23,322
20,107
86%
34,652
28,280
82%
Child Poverty Rate (%)
1989
1999
17.9
24.1
135%
17.0
21.2
125%
Per Capita Income ($)
1990
2000
19,572
15,826
81%
Educational Attainment
(HS+,%)
1990
2000
75.2
66.9
89%
Sources: U.S. Bureau of the Census, 2000 Census of Population and U.S. Bureau of Economic Analysis,
Regional Economic Information System. Special tabulation by the Center for Business and
Economic Research, The University of Alabama.
8
29,469
23,521
80%
81.6
75.3
92%
How Alabama Compares to the United States
Sources: U.S. Bureau of the Census, 2000 Census of Population and U.S. Bureau of Economic Analysis,
Regional Economic Information System. Special tabulation by the Center for Business and
Economic Research, The University of Alabama.
9