Tri-City employment growth highest in state
Published Wednesday, October 24th, 2007By Pratik Joshi, Herald staff writerThe Tri-City economy has added more than 4,000 nonfarm jobs in the past 12 months for a growth rate of 4.9 percent that is the highest in the state.The growth is amazing, Dean Schau, state regional economist, said Tuesday after the state released its updated employment report for September. In terms of wages and salaries, the Tri-Cities is the second-largest economy in Eastern Washington, Schau said.
In comparison, payroll employment has increased statewide about 2.7 percent since 2006.
The Tri-City labor force grew by 5,830 and employment increased by 6,170 in the past 12 months. That has brought down the number of unemployed from 5,620 to 5,300 in the same time frame.
Nonfarm jobs stood at 91,400 and farm jobs numbered 13,476 last month. And, the rate of unemployment was pegged at 4.4 percent, down from 4.9 percent in September 2006.Population growth, development in Richland’s Queensgate area and along Road 68 in Pasco and the expansion of the prison in Connell have helped sustain the job growth.
The next few months may see a cyclical decline in food processing sector jobs that typically reach a peak in September, Schau said. But he expects the growth to continue.
Economic development consultant C. Mark Smith concurs. But he said it will be interesting to see the impact of rising gas prices on the local economy.
“How long can we go without succumbing to national and international pressures?” asked Smith, Richland’s former economic development manager.
Growth may be slow, “but it’s not turning south on us,” he said.
The Tri-Cities Research District potentially will offer opportunities for future growth, he said. Also, the recent innovation zone designation for the area may help create new possibilities for the scientifically trained in the Tri-Cities, he said.
Jobs at Hanford’s vitrification plant stood at 2,705 last month, up from 2,622 in August. In the past year, the site has added 825 workers.
Also, manufacturing, retail, financial services and food services sector grew over the year. The financial sector added about 100 jobs since September 2006.
There was a marginal decline in restaurant employment from August to September as students returned to college, Schau said. But the local schools helped create new jobs at the beginning of the school year.
“Normally, the local school districts increase their employment by 6.7 percent from August to September and 11.7 percent the following month,” Schau said.
Last month, more than 13,000 workers were employed in the ag sector, about the same count as in September 2006.
In Washington, 78,100 new net jobs have been created since September 2006. Though job growth has remained healthy for the past three years, the state saw a decline of 1,100 nonfarm jobs in the past month.
“State employment and the unemployment rate may wobble a bit, but we are consistently in a good place, and the numbers serve as good indicators of our economy’s stability and strength,” said Evelina Tainer, chief economist for the Employment Security Department.