Kootenai economy falls below statewide growth

With Labor Day just passed, it gives people a chance to look at the local economy, and after experiencing a stagnant economy for the past decade, local and state experts say there are possible silver linings in Lincoln County’s economic future.

As of July, Lincoln County has the second highest rate of unemployment in the state at 7.8 percent, compared to the overall state of Montana, which is 4.2, according to the Bureau of Labor Statistics.

While the percentage of unemployment for Lincoln County is 7.8, Montana Bureau of Business and Economic Research Director Patrick Barkey said that much of the county level data tends to be a little less exact because they’re survey-based. While the number may be unreliable, Barkey said this corner of Montana has had a rough decade in terms of the economy.

“[Northwest Montana] has clearly been one of the more challenged parts of the state for a number of years for a lot of reasons,” Barkey said.

As an economist, Barkey said that looking at one point in time for the economy is unreliable, so it’s important to look at long-term trends. For example, 2015 wasn’t a bad year for the county, Barkey said, but looking at the six year period, the county has remained stagnant, with some decline and recovery periods. In contrast with Montana’s economy, the state at large has grown 16 percent since 2010, according to Barkey.

According to the Bureau of Labor Statistics, Montana’s overall unemployment rate has steadily decreased from 2010, when it reached its peak at 7.4 percent. As of July, Montana’s unemployment rating is 4.2.

According to an Aug. 19 press release from the Montana Department of Labor & Industry, Montana has added over 7,700 jobs since the first quarter of 2016. According to a report released on Sept. 6 by the Montana Department of Labor and Industry, while the state’s wages are still ranked 49th in the country, wages have increased by an annual average of 3.2 percent during the last 10 years, .5 percent greater than the national average.

“Rural northwestern montana has had a pretty tough decade so far,” Barkey said, who noted that the net job growth of 7,700 jobs in Montana hasn’t impacted the state’s struggling counties such as Lincoln.

The job turnover from last year is promising, Libby Job Service Manager Johnette Watkins said, with more open positions this year than last year. According to Watkins, approximately 116 jobs from across the county are posted at the Job Service, with the majority of those jobs located in the Libby area. Watkins noted that the average jobs she’s seen over the past few years is 80 to 90.

According to the Watkins, most of the jobs in Lincoln County are in the medical field, with jobs at Cabinet Peaks Medical Center, various home care and caregiver agency jobs and human service related jobs. While many of these jobs are professional-level, Watkins said that some of them are entry-level positions, including ones in the hotel and food service.

Watkins gave a list of the biggest employers in the county, which include Cabinet Peaks Medical Center and Rosauers, which employ 100-240 people each, followed by the Libby Care Center, Mountain View Manor and Town Pump, which employ 55-99 each.

That list excluded the government, railroad and tribal jobs in the county. According to the County Clerk and Recorder Robin Benson, the county employs 163 people.

Barkey said, that while the economy in Lincoln County may seem grim, there is a silver lining with a market for wood products.

“The market is out there,” Barkey said. “There is a fairly bright future for home building in the U.S.”

Barkey said that the wood industry faces challenges, being certainly different than it was eight to 10 years ago. In terms of mining, Barkey said the economics is complex with local circumstances and the world market influencing the industry.

Another silver lining is that Montana is ranked number one in the Kauffman Index for startup activity in the smaller 25 of the 50 U.S. states.

On a conference call Wednesday, U.S. Sen. Jon Tester, D-Mont., weighed in a range of issues including the economy in Lincoln County compared with Montana.

“You guys have a tremendous opportunity up there with wood products,” Tester said. “You have potential up there being in a beautiful part of the world with the tourism industry.”

Tester then spoke about Montana’s economic growth, including jobs being added due to the Bakken, coming off many years of profitable livestock prices, record-breaking visitorship in the parks and growth in healthcare in the more-urban parts of Montana.

“Libby, because of it’s location, because of God’s infrastructure, has opportunities in the [wood and tourism] industries,” Tester said. “I think things are going to move in the right direction for Libby, I really do.”

Reporter Bethany Rolfson may be reached at 293-4124 or at reporter@thewesternnews.com.