January's unemployment increases slightly

MOSES LAKE - Grant County's unemployment rate for February increased slightly by 1.1 percent from January to reach 13.3 percent.

But the rate improved from one year ago, when it was 14.7 percent, the highest percentage recorded by the state agency in two years.

The percentage translates to 340 more jobs, with some found in the goods producing, construction and manufacturing areas, said Mark Berreth, regional labor economist with the state Employment Security Department, on Tuesday.

"We will be hitting low points in February for month losses, but year over year, Grant County has been leading the way for North Central Washington,"  Berreth said.

He defined North Central Washington as including Chelan, Douglas and Okanogan counties.

Berreth expects construction to pick up more.

In other area counties, year-over-year growth is starting to happen, but Grant County has experienced more significant growth.

There was 3.8 percent job growth in Grant County, while there were 2.4 percent more jobs in Chelan and Douglas counties.

"I think it has a lot to do with the location," Berreth said. "With Chelan and Douglas counties, it depends on winter tourism activities," he said ... The dependence on that makes growth a little bit harder at times, especially now. We have a couple of the big tourist areas. There was a lot of dependence on those outside of the agriculture season. The entire North Central Washington area depends on agriculture in the summer."

He credited Grant County's diversity with helping employment in the manufacturing and goods producing areas.

Overall, economic recovery is slow nationwide.

In a better scenario, the unemployment rate would be about 10 percent now and 6 percent or lower in the summer for recovery, he explained.

Grant County's best growth is seen in the areas of goods producing, trade, transportation, retail and  wholesale.

With job growth, consumer confidence is rising, but at the same time, gas and food prices are increasing, he said.

"It's hard to tell how long it will take to get (consumer confidence) back up," Berreth said.

Terry Brewer, executive director of the Grant County Economic Development Council, said the unemployment rate is still too high.

Very little housing construction is occurring, he said.

But business construction has picked up slightly in Grant County during the past six months, with data center activity in Quincy and the BMW/SGL Automotive Carbon Fibers project in Moses Lake.

With industrial businesses, many companies are back to previous employment levels, he said.

There were significant layoffs in the second and third quarters of 2008, which progressed in 2009.

Employment at Genie Industries, a Moses Lake aerial lift manufacturer, is improving, but not back to where it was, he said.

Ephrata windmill manufacturer Katana Summit recently restarted work at its plant, hiring about 75 workers.

"With SGL doing some hiring and more to come, I think the industrial sector is pretty stable," Brewer commented.

He thinks the area will likely see one more data center project start this year and one more industrial-type project.

Permanent jobs follow nine or 12 months later, after construction jobs.

Permanent data center jobs vary from 40 and 60 new positions, he said.

It is also likely Dell or Sabey could start construction this year in Quincy.

It is a possibility the Titan Group, in Moses Lake, would start an additional facility, he said.

It is hoped Pacific Coast Canola in Warden starts construction.

Another possibility is the restart of Specialty Chemical's project at the old sugar plant in the Moses Lake area.

The company stopped construction in 2008 because of the economic slowdown and the lack of cash needed for construction.

Although it is slow with job numbers improving, Grant County is fortunate.

Brewer said he feels good about Grant County's situation because of the growth.

"We're much better off than those with no growth, no new jobs on the horizon, or no new construction," he said.