SEMO REDI Releases Comprehensive 2026 Southeast Missouri Economic Report

Southeast Missouri Regional Economic Development, Inc. (SEMO REDI) has released the 2026 Southeast Missouri Economic Report, one of the region’s most comprehensive, data-driven assessments of economic conditions across its 18-county footprint.

The report pairs nationally available datasets with direct input from nearly 100 employers across the region, offering a detailed look at population trends, workforce dynamics, industry performance, business sentiment, and quality-of-life factors shaping Southeast Missouri’s economy. The effort was commissioned by SEMO REDI and completed in partnership with the Small Business Development Center at Southeast Missouri State University.

The full report can be downloaded here.

Findings from the report challenge many assumptions about rural economies. Despite long-term population decline, nearly 45% of surveyed businesses expanded over the past year, and 65% plan to hire in 2026. Employers continue to invest heavily in their workforce, with 95% reporting employee training investments, even as workforce availability remains the most common constraint on growth.

The report highlights a dual economic structure that defines Southeast Missouri. While 98.8% of establishments (business locations) employ fewer than 100 people, these businesses account for more than 70% of regional jobs, underscoring the importance of small businesses to economic vitality. At the same time, large employers, just over 1% of establishments, anchor nearly 30% of all employment, playing an outsized role in regional stability.

Industry trends largely mirror national patterns, with Healthcare and Social Services remaining the region’s largest employer and Professional, Scientific, and Technical Services posting the fastest growth rate since 2005. Manufacturing employment, often assumed to be in steep decline, has stabilized over the past decade, remaining a foundational part of the regional economy.

The report also addresses emerging issues such as artificial intelligence, finding that AI adoption remains limited, with no surveyed businesses reporting layoffs related to AI in 2025. Quality-of-life factors, including childcare access, housing affordability, and healthcare, are identified as increasingly important influences on workforce participation and business retention.

“This report confirms what many employers already know,” said Shad Burner, CEO of SEMO REDI. “Southeast Missouri’s economy is resilient and adaptive, but long-term success will depend on coordinated action around workforce development, housing, infrastructure, and business support.”

The 2026 Southeast Missouri Economic Report is intended to serve as a foundation for informed decision-making by regional leaders, policymakers, educators, and employers.

National datasets and survey results utilized for this report may be downloaded here.

1 Comment

  • Jamie Frakes February 11, 2026

    This is an excellent report! Building workforce capacity has been a challenge for more than 20 years, and it remains a critical factor in sustaining long-term economic growth. Strengthening partnerships among employers, educational institutions, and workforce training providers is essential to meeting both current and future workforce needs.
    Expanding capacity by developing local talent through articulation agreements between in-state and out-of-state higher education and workforce training providers creates a powerful, two-way benefit. These partnerships broaden access to high-quality education and training while supporting individual career advancement and long-term business sustainability. Through these collaborative efforts, local talent can earn the credentials, skills, and practical experience necessary to strengthen the regional workforce and support the continued success of local business and industry.

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