Grant County labor economy 'slow but steady'

Health services gains most jobs, food processing biggest loss

GRANT COUNTY — A regional labor economist has bad news and good news for the county's labor economy. But mostly good news.

In a report prepared June 27, regional labor economist Don Meseck, with the labor market and economic analysis branch of Washington State Employment Security, announced that total nonagricultural employment in the county added 540 jobs during May 2005, approximately 190 more jobs than in May 2004.

"The bad news is that the job growth rate has been slow and steady," Meseck said, noting that in 2003, the county was adding jobs at a faster pace than the state of Washington did. In 2004, the state and the county were about the same, as the labor economy began to recover state-wide that year, driven by hiring in the Puget Sound area. "The county is adding jobs at a rate a little slower than the state."

But Meseck said that overall there's good news, and cause for cautious optimism, because the county is still adding jobs at a steady pace, with a steady pick-up beginning in the first quarter of 2005, January through March. During that quarter, the state job growth rate was around 2.7 percent, and the county's job growth rate was up to 2 percent.

"I can't say things are booming — they're not — but on the other hand, there's slow steady growth," Meseck said, pointing at the arrival of Katana Industries on Port of Ephrata property as another good sign. "When jobs come in tens and twenties and stay, it's as good as when they come in in hundreds but don't stay."

Another indicator that looks much better than last year, Meseck said, is the unemployment rate, down to 6.8 percent in May 2005 from 8 percent in May 2004. Meseck said 3,020 people were unemployed in May 2004 and 2,570 in May 2005.

"That's another indicator that the job market is improving in the county," he said.

Several industries in Grant County showed substantial employment gains over the year, while two categories saw a loss. Non-durable goods provided 210 fewer jobs in May 2005 than in May 2004, primarily in the food processing industry.

"That's the big loss area," Meseck said.

Accomodation and food services, primarily hotel and restaurant employment, slipped by 50 jobs as well. It's up statewide, but down in Grant County, Meseck said.

Health services is the big gainer, up 120 jobs, he added. "Everything from private hospitals to doctors' offices, clinics, nursing homes and assisted living. That's the industry that gained the most jobs this May over last."

Scott Campbell, marketing director for Samaritan Healthcare, said he was not surprised by the numbers. Demand for certain types of health care workers has been high the last few years, he said, and that is expected to continue.

Campbell said that there are several reasons for the increase in jobs, including the fact that Moses Lake has both a growing population and an aging population, which will drive the need for health care services, and the current trends in health care delivery.

"One of the professions in very high demand right now is pharmacists," Campbell said. "There's just so many drugs coming onto the market that pharmacists need to handle, plus the supply has changed because pharmacy programs now go to the doctorate level. There's more training."

Pharmacists are probably the most chronic shortage in health care services, Campbell said, adding that registered nurses, operating room technicians and such subspecialties in radiology and X-ray as ultrasound and nuclear medicine.

For local government jobs, two-thirds of the 60 job gain is mostly in schools, primary and secondary, Meseck noted.

"Construction is up quite strongly, about 50 jobs, manufacturing durable goods is up a little and firms like Katana are probably going to add to that," he continued. "Retail is up 60 jobs. That means people are buying more products, and more money (is going) into the sales tax."

Wholesale trade is also up, related to agriculture, Meseck said, noting that part of those increases are left over from last year's "huge" apple harvest.

In looking at the county's labor economy, Meseck said one also has to look at the agricultural sector. While he was unable to definitively say, there has generally been a lot of agricultural development in the county, and Meseck said he thought that the acreage of many crops seems to be holding steady, if not increasing.

Meseck said it's always harder to predict the future, adding that one or two major events — such as the loss or gain of a company — can skew the numbers.

"I think Grant County will continue to see slow, steady growth and I'd like to emphasize the 'steady,'" he said. "Nothing earth-shattering, but at the same time, nothing catastrophic, either. I think this year may actually be a better economic year than last year in terms of job growth rate."