Tag Archives: economy

Defining Rural Idaho Presents Challenges

Idaho is comprised of 44 counties – seven urban and 37 rural – as classified by the Idaho Department of Labor. Idaho fits snugly between economic urban powerhouse states Washington and Oregon and more rural neighbors Montana and Wyoming. The geographic placement of Idaho creates a unique situation.

The broad county categories of urban and rural are based mostly on population density. Though a simple classification system, it may have some significant restrictions. As time passes more people are leaving rural areas out of economic necessity such as seeking better job opportunities, education access and health care amenities. Migration out-flow data shows that rural counties like Madison and Clark have the highest rates of out-migration – up to 17 percent annually. Meanwhile, only Canyon and Ada counties have experienced an annual out-migration of only 3 to 6 percent. Though these changes mimic national trends, rural communities throughout Idaho are still active and pushing to thrive. Besides population density, there are many characteristics that separate a rural area from an urban one.

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New Labor Regional Economist Discovers Diverse Character of Eastern Idaho

As a new resident of eastern Idaho, I am quickly learning there is much more to this traditionally rural area than I anticipated. Each region in Idaho is immensely different from one another, but eastern Idaho has vast diversity within itself. The rural, scenic, untouched beauty of Custer and Clark counties is hard for many people to find within a reasonable distance of their daily lives. In Idaho, these scenic views are just a couple of hours drive away. The Idaho Falls metropolitan area is alive, well and the forefront of economic mobility in the region. Although small compared to metro areas nationally, swift and advanced development of medical facilities, retail shopping and restaurants makes the Idaho Falls metro area an ideal place for young families or for a retirement in paradise. Along with the many economic upsides, there are also challenges for this part of the state.

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Eastern Idaho is made up of nine counties; one urban and eight rural. Each county has experienced population growth within the last few years. Teton County, a rural county and close neighbor of Wyoming, has experienced a 34 percent population hike since 2010. After recently visiting the towns of Victor and Driggs, the reasons behind this rapid growth are clear. These quaint towns are infused with rich culture, diverse food and gorgeous views of the Teton Mountains with the kind of outdoor recreational activities most people dream about. For these reasons and more, there is an influx of migrants – retirees, young outdoor enthusiasts and people of all ages – swarming to these towns looking for adventure.

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Forecasting Madison County’s Economy

Community leaders and economic development professionals are typically interested in the types of businesses that should be added to their local economies. Any answer comes against the backdrop of the existing business mix that is the result of a century or more of economic evolution and market forces.

But in some cases industry growth struggles to keep up with population growth.

Madison County was Idaho’s fourth fastest growing county between 2000 and 2012 when its population increased 36 percent – almost 10,000 residents. Much of the growth was spurred by the transition of two-year Rick’s College into four-year Brigham Young University-Idaho. But neighboring Jefferson and Teton counties were also in the top-five fastest growing counties in the state.

A long-range plan called Envision Madison is under way in Madison County to ensure the community remains economically viable while maintaining its quality of life as growth continues. City planners and government leaders – and entrepreneurs looking for the next business idea – are hunting for strategies to facilitate continued natural growth. Fortunately there are a few statistical tools that can aid the process. Continue reading

Per Capita Personal Income Rising in Northern Idaho, Declining Statewide

Personal income is the total of wages, business profits, investment earnings and transfer payments like Social Security and pensions, and in Idaho that total jumped 3.9 percent from 2011 to 2012.

Per capita personal income – that total divided equally among every man, woman and child – was $34,481 in 2012 in Idaho – 79 percent of the national average of $43,735. Idaho’s per capita income has been steadily declining in relation to national per capita income over the past decade, dropping from 83 percent in 2002 when it ranked 40th among the 50 states to 49th among the states in 2012.

During the same period, personal income and per capita income increased for all five northern Idaho counties. The largest increases were in Benewah and Shoshone counties, where there was a significant increase in wages and salaries. Compensation and bonuses from the mining industry was most likely the source in Shoshone County, and earnings in local government probably explains the growth in Benewah. Continue reading

Home, Lawn and Garden Centers Show Signs of Growth

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Punxsutawney Phil took some heat this year for falsely predicting the early onset of spring. All the while thousands of Idaho retail workers were prepping so potential customers can get started on projects around the house.

Home Depot has big hopes this year, announcing plans to hire 80,000 seasonal workers nationwide – 10,000 more than last year. Local media outlets reported plans for Home Depot to add 100 workers in eastern Idaho,  225 in the Boise area and 30 to 40 in Twin Falls.

Employment typically averages a little more than 30 per home center in Idaho. But that average is likely skewed by both the larger number of smaller local business and big box stores like Lowes and Home Depot in more urban areas. Employment at a lawn and garden center, however, barely hits 10 during the peak season between the second and third quarters each year.
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Economic Activity in Idaho

Here is a roundup of economic news compiled by the Idaho Department of Labor in April:

Northern Idaho

  • More than 600 students participated
    Hard Hats, Hammers and Hot Dogs.

    Hard Hats, Hammers and Hot Dogs.

    in this year’s Hard Hats, Hammers and Hot Dogs, a hands-on event sponsored by local businesses, Avista Utilities and the Idaho Department of Labor. Students learn about a variety of careers in trade industries from operating heavy equipment to welding.

  • Spokane-based Seven2 Inc. and 14Four Inc., sister companies that provide digital and Web-based design services, have roughly doubled in employment, growing from 30 to 70 with plans to add 10 more. The companies develop online and mobile application projects for clients such as Disney, Expedia and AT&T.
  • Ground Force, a Post Falls company that manufactures open-pit mining equipment, expects to hire between 100 and 125 new employees. Most of those jobs will be working in the manufacturing plant and some in engineering and administration. In addition to the new 65,000-square-foot plant, CEO Ron Nilson plans to add another 44,000-square-foot factory and an 8,200-square-foot corporate office. The company projects Ground Force’s workforce to top 400 in Post Falls.

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Employment Continues to Elude Youth

Youth unemployment has been a concern throughout this recession and well into the recovery. According to the Current Population Survey, young people are having more trouble finding employment. Labor force participants 2011 unemploymentbetween the ages of 16 and 19 especially face an annual unemployment rate three times the rate for the civilian labor force overall.

This is not just a phenomenon of the current recovery. From 2007 to 2012, younger workers have continued to have a much higher rate than that of the overall population.

While the employment situation for the country is improving, that gap is not. In 2007, unemployment among 16- to 19-year-olds averaged 11 percentage points higher than in the overall labor force. This difference peaked in 2010 at an average of over 16 percentage points. Since then, the difference has stayed roughly the same, losing only a half point in 2012. Over the same span, the unemployment rate for those 16 and older has dropped more than two percentage points.
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