SILVER
SPRING, MD – While impacted by the widespread downturn in
housing sales, Montgomery County’s economy appears well-positioned to weather
the effects of the slowing national economy, thanks to a stable number of
technology and federal government jobs.
That’s according to a report on the state of the
local economy delivered today to the county Planning Board by its professional
research staff. Researchers, characterizing the county as “relatively stable,” at
the board’s request today provided a snapshot of the $64 billion annual
economy.
The health of the local economy is built upon a
combination of private and public sector jobs, most of which are high-wage
posts held by highly educated staff. Almost a quarter of those jobs are in biotechnology and telecommunications.
Yet, the local economy is reliant on the federal government.
The county’s proximity to Washington, D.C., means that many federal offices are
located here, and they employ more than 68,000. Moreover, the federal
government spent $6.8 billion on Montgomery County goods and services in fiscal
year 2006 and was the largest renter of Montgomery County office space.
County researchers plan to continue to watch federal
government trends, including the annual survey of federal installations that
helps forecast local job growth. Last year, the survey predicted that the
federal workforce in Montgomery County would increase by 80,000 by the year
2020. Researchers also will analyze new statistics on federal procurement,
which had increased after September 11, 2001, but has slowed more recently.
The staff report also reviewed the health of
commercial space and housing markets. Sublet office vacancies – called a key
indicator of declining economic health – are rising, and housing sales have slowed
considerably since a peak in 2003. While median home prices have not fallen, the
average time a house remains on the market has risen sharply, suggesting that
homeowners are waiting longer to sell homes rather than lowering prices.
Montgomery County continues to be a popular place to
live, with most residents both living and working within its borders. Overall,
the local population is home to well-educated people, with more than half of
residents holding bachelor’s and advanced college degrees, and it continues to
attract well-educated residents.