Philadelphia Fed report: Delaware sees slow job growth, higher income growth

Delaware is recording the slowest employment growth in the three-state territory of the Federal Reserve Bank of Philadelphia.

That disappointing number is offset somewhat by higher income growth.

The bank's Tri-State Tracking report for May showed a 1.2% job growth rate in the First State, below the 1.6 in Pennsylvania and a 1.9 figure in New Jersey.

Delaware's 3.9% jobless rate was above the 3.4% in Pennsylvania, but was well below the 4.6% in New Jersey. Delaware's unemployment rate now matches the national figure after trailing the U.S. number in recent years.

The June unemployment rate for Delaware will be released on Friday.

Total employment dropped slightly in Delaware, which is seeing a low labor participation rate.

Reasons for the lower participation rate remain elusive but may center on an older workforce, some young people staying home and not seeking employment or a lack of day care options.

One bright spot came in income growth, with Delaware ranking first among the trio of states in the bank's footprint. Income growth in Delaware is near the national average.

Delaware is also seeing more building permits per population than Pennsylvania and New Jersey. Gains could be tied to home construction in Sussex County, which is seeing an influx of retirees.

An area of concern for Delaware not covered in the Fed report is the state's GDP (goods and services), which has shown no dollar growth.

The Philadelphia Fed's region takes in the entire state of Delaware and large portions of New Jersey and Pennsylvania outside the Pittsburgh and New York metro areas.See accompanying graphics for the three states.