According to recent data from the U.S. Census Bureau, the total number of employees working in Shelby County increased by more than 30 percent over a five-year period to 64,871 in 2003. In Jefferson County, the total number of employees across industries was 339,294, down 4.2 percent from five years earlier.

An analysis of new data compiled by the Census for 2003 in a seven-county region provides further evidence of the tremendous growth of Shelby County compared with neighboring counties.

In 2003, the number of business establishments counted in Shelby County surged 21 percent over 1998 to 4,184. Total payroll in the county grew to more than $2.2 billion, up a whopping 48.3 percent.

Annette Watters, assistant director of the University of Alabama's Center for Business and Economic Research, says the business growth indicated by the Census results parallels strong population surges in the county.

Drops in Jefferson County

Likewise, the population of Birmingham in Jefferson County has continued to decline in recent years, so it's not surprising that the number of businesses and employees there would show a similar decline, she says.

James Dedes, executive director of the Shelby County Economic & Industrial Development Authority, agrees.

"We attribute our positive business environment and rapid population growth as key factors in this trend," Dedes says. "Employers continue to recognize the benefits of having their companies in close proximity to their employees."

Among the seven counties - a group that comprises Jefferson, Shelby, St. Clair, Bibb, Blount, Chilton and Walker counties - Shelby was one of only two that saw growth in the number of people employed there between 1998 and 2003. The other was Chilton County, where the number of employees increased to 6,741, up 4.2 percent.

The other five counties saw declines ranging from 1.4 percent in St. Clair County to 17.5 percent in Bibb County.

Despite gains in some sectors, such as health care and social assistance and transportation and warehousing, Bibb reported losses in a number of areas, including manufacturing and construction.

Most of the seven counties also saw slight decreases in the number of total business establishments over the five years, from a 1.8 percent decrease in Jefferson County to a 6.5 percent decline in Bibb County. St. Clair was the only other county to report an increase, of 3.2 percent.

Watters cautions that growth or decline in the number of businesses in a given area "doesn't give the whole picture." While each business adds to the economic wealth of an area, small and large businesses are all counted together, she says. Their relative impact, certainly, will vary according to their size, the level of wages they provide and other factors.

Boosts in payrolls

Six of the seven counties saw a growth in business payroll, with only Bibb County reporting a decline, of 11.6 percent.

Among Shelby County's successes, Dedes notes that the number of retail businesses there has increased by 42 percent.

"We mirror the national trend of increases in the service sector combined with decreases in manufacturing," he says. "It is interesting to note that, while the number of employees in manufacturing has declined, the number of companies and the annual payroll in this sector has increased by 14 percent and 9 percent respectively. We hope this is an indicator that our strategy to focus on the quality of jobs being created will lead to higher wages for Shelby County residents."

Construction, too, remains strong in Shelby County, Dedes says, noting a 21 percent increase in the number of jobs in that sector.

"Obviously, the county's rapid population growth fuels residential and commercial construction, which has a positive impact on jobs in this category," Dedes says. The number of accommodation and food service establishments increased 26 percent in Shelby County over the five-year period.

"There are over 30 lodging properties in Shelby County, and that number is growing," Dedes notes.

In Jefferson County, the number of employees working in sectors such as finance and insurance, information, and professional, scientific and technical services increased, while employment in construction, wholesale trade, mining and other areas declined.

Though the Census data extend only through 2003, Dedes says he expects to see Shelby County's growth trend continue in subsequent surveys. In particular, Dedes says the county will continue to follow a national trend of increases in the service sector. And with its proximity to the I-65 corridor, Shelby County also will see an expansion in its warehousing and distribution operations, he says.