Tri-City Area and Real Estate Blog

Job growth in the Tri-Cities continues to increase on a monthly basis, with 96,800 nonfarm jobs, which is a 3.9 percent increase over the same month in 2009.  The fields of manufacturing, professional and business services, retail trade and the government sector saw the most growth during that same period. The cushion for the Tri-Cities that negated some of the effects felt in other parts of the country was federal stimulus money, however, the Tri-Cities will still need to continue it’s drive towards diversification in order to stabilize the economy and create more jobs.

Unemployment in the Tri-Cities dropped marginally from 9.0 percent in February to 8.2 percent last month. Many new workers have been drawn to the Tri-Cities because of  strong job growth and relative stability in the economy.

Ahhh, the arrival of spring in all its glory has reached the Tri Cities, and with it comes the beauty of trees and plants in bloom and tons of sunshine! As this writer drove into work today in Kennewick, my day was instantly brightend with the incredible colors that I drove past, so much so that I made  a U-turn, pulled out my camera a snapped several photos of different trees, bushes and plants I saw. I guess its a good thing I was actually ahead of my usual rushed schedule each morning.  It good to stop and smell the roses on occasion – or in my case, stop and snap a few photos.  I have lived many beautiful places across this country and seen many lovely communities, as have many of you. Sometimes I wonder about my decision to return to the Tri Cities after being away so long. Yet I find that we have so much to offer here weather-wise, activities-wise, employment and job growth-wise, and each time I stop and think about why I’m here, I find that with all those other things aside, just having the opportunity to enjoy such simple beauty each day feeds into the easy pace of life here.   Come join us here in the beautiful Tri-Cities region where there is so much to do and see…………..or not, if you so choose.

The words “jobless recovery” and “recession” have been tossed around a great deal over the past year or so, but here in the Tri Cities community leaders are delighted to announce that our area leads the nation in job growth during these difficult times. Garner Economics, a consulting firm from Atlanta published a report for March indicating that the Tri Cities is at the top of the list for the nation as far as job growth is concerned.  From January to June 2009, the Tri Cities was one of 9 metrolpolitan areas compared for positive job growth. The report also indicates that the Tri Cities actually was a top performing economy for the entire year 2009. This writer believes that this proves that the folks who have worked so diligently over the past couple of decades to diversify the Tri Cities, have been very successful and kudos to them!

A strong gain of 3,100 jobs over 2008 was seen recently in the Tri Cities, according to the Washington Employment Securty Department.  This increase represents a continuous growth in the Tri Cities.

Government money fuels this job growth, especially at Hanford with increases seen at the vitrification site and with support services personnel.

Health services, food processing, construction, finance and the hospitality industries have all seen increases this past year, and in addition to local school districts.

The national economic slowdown is seemingly catching up with the Tri-Cities if the latest job numbers are any indication.

But despite losing 800 nonfarm jobs in July, the Tri-Cities is the only major community in the state to see job growth in the last year, said Dean Schau, regional labor economist.

Most of the monthly job losses were in construction, financial services, education and health services and the public sector, he said.

Also, modest gains were reported in professional and business services, manufacturing, retail and the trade, transportaion and warehousing sector last month.

That helped bring down the unemployment rate in the Tri-Cities from 6.7 percent in June to 6.1 percent in July.

Since July 2008, the Tri-Cities gained 1,300 nonfarm jobs, an increase of nearly 1.4 percent, Schau said.

About 68,000 nonfarm jobs were lost over the year in the Seattle-Bellevue-Everett metro area, he said. And, Tacoma lost 13,500 nonfarm positions and Spokane was down 12,100 nonfarm jobs, bringing the tally of lost nonfarm jobs in the state to about 125,000.

The year-over-year numbers are a better indicator of economic trends, Schau said, adding the core of the Tri-Cities’ economic health lies primarily in agriculture production, food processing and electricity generation that provide consistent employment opportunities.

“We’ve an absolutely great economy to go into this recession,” he said. Yet, a lot of people, particularily in construction, real estate and finance are hurting, adding to the number of jobless workers in the community.

Amazon.com held a job fair Tuesday in Kennewick to hire seasonal help, said Candice Bluechel, business services outreach manager at WorkSource Columbia Basin.

But otherwise hiring in the retail industry has remained slower compared with last year, she said, adding that many local retailers didn’t hire lots of workers for the back to school shopping season.

Cosumers have been cutting back on major purchases like cars and appliances, which may explain the loss of about 400 jobs in the retail sector since July 2008, Schau said.

The federal stimulus programs like Cash for Clunkers are helping the local economy, but they haven’t immediately translated into jobs, Bluechel said.

WorkSource has about 600 job openings, and 300 of them came in July, she said. Most are farm-related jobs for laborers, mechanics, and truck drivers, she said. Also, employers continue to look for technical writers, invoice clerks and office support staff.

The Tri-City economy definitely is in better shape compared with other regions of the nation, she said, adding she doesn’t know how it’ll play out longer term. “I’m going to be conservative ’til I see what happens to holiday hires,” Bluechel said.

Yearly gains of about 200 jobs were reported in the food processing industry, 600 jobs in professional and business services and 100 in trade, transportation and warehousing, Schau said.

Major declines came in construction with a loss of 1,100 jobs since July 2008. The financial services sector lost 300 jobs in the same period.

The number of unemployed workers in Benton and Franklin counties increased from 6,450 in July 2008 to 8,180 last month. In contrast, the number of unemployed workers in Washington went up from 178,200 to 315,850 in the same time.

The state’s unemployment rate fell one-tenth of a percentage point, from 9.2 percent in June to 9.1 percent in July, said Dave Wallace, a labor economist with the Washington Employment Security Department. It was partly helped by the gain of an estimated 4,000 nonfarm jobs last month. “(But) it’s too early to call it a trend (of recovery.)” he said.

Employment Security Commissioner Karen Lee said though the July numbers show the recession is slowing. “We expect to see some ups and downs for some time to come.”

Source: Tri-City Herald

The Tri-Cities can thank federal stimulus money and highway construction work for helping the community weather the recession better than many other Washington communities, a state economist says.

Federal stimulus money for Hanford cleanup and ongoing road work helped the Tri-Cities buck the state trend and show an increase in jobs last month, said Dean Schau, regional labor economist.

The latest data released Tuesday by the State Employment Security Department shows Tri-City nonfarm jobs in June grew 1.36 percent over the year, and were up about 1.57 percent since May.

The tally showed 97,200 non-agricultural jobs for the month, an increase of 1,300 jobs over the year.

Gains were reported largely in professional and business services, and administrative and support services. Although construction was down 600 jobs over the year, the sector added 200 jobs in June compared with May, Schau said.

Public sector employment was up 800 since June 2008 and 100 since May. About 60 percent of the increase was at local school districts, which suggests continued economic and population growth, Schau said.

The unemployment rate in the Tri-Cities dropped from 7 percent in May to 6.8 percent in June despite an increase of 5,950 workers in the total labor force of 134,000. There were 9,130 people looking for work in the Tri-Cities last month.

In contrast, the state’s unemployment rate climbed from 9.1 percent in May to 9.3 percent in June. The national unemployment rate was 9.5 percent in June.

Employment Security reported the state also lost an estimated 10,500 nonfarm jobs last month. In all, Washington had 117,800 fewer jobs in June, compared with June 2008, a decline of 4 percent.

The Tri-Cities managed to do OK thanks largely to federal support for Hanford cleanup, Schau said. Agriculture, food processing and power generation provide an additional cushion for the area economy with both seasonal and permanent jobs, he added.

That doesn’t mean some people aren’t hurting, Schau said. “Ask anyone who’s been laid off or is looking for a job and they’ll tell you there’s a lot of pain out there,” he said.

People also aren’t spending money, particularly on big-ticket items, which explains why the retail sector saw a loss of 600 jobs over the year, Schau said. The decline also likely was caused by the recent closure of national chain stores like Circuit City in Richland and Joe’s Sports in Kennewick.

The silver lining is that at least some consumers still are eating out or sipping wine locally, Schau said. He said that perhaps helps account for an increase of 100 jobs in the food service industry in June. Together with leisure and hospitality, the food services sector provided more than 16,000 jobs last month.

That trend was mirrored stateside, where the leisure and hospitality sector added 500 jobs last month and the retail industry lost 2,100 jobs.

Laurin Rogers, who was laid off in October from his $20 an hour job as an aviation technician in Pasco, said the Tri-Cities offers jobs opportunities even during these tough times. Government contract work at Hanford and potential jobs it will create elsewhere will help the community get through the recession, Rogers said.

Instead of choosing a lower-paying job in a different field, Rogers, 49, said he decided to go to Columbia Basin College to pursue a business degree. He said he wants to get into project management and is working to improve his leadership skills.

Candice Bluechel, business services outreach manager at WorkSource Columbia Basin, said she hopes the community can build on the momentum provided by the federal dollars. Lockheed Martin and Washington URS, which recently got non-stimulus federal money, are still looking for skilled workers for local projects, Bluechel said. Most of those jobs are technical, she said.

Hiring for seasonal agricultural jobs also is in full swing, she said. And some restaurants and hotels are trying to hire. Other sectors of the economy aren’t offering many job opportunities, she said. “Nobody is hiring in a big way.”

Bluechel said retailers may start to hire again for the back-to-school season. For example, Amazon.com recently inquired about holding a local job fair, she said. Those looking for jobs can check out the WorkSource website www.go2worksource.com for more than than 1,200 current openings.

Source: Tri-City Herald