Idaho is a large state with significant land area in mountain ranges, forests, wilderness and cropland. Although beautiful and geologically diverse, the state’s rugged landscape results in low overall population density compared to many U.S. states.
Averaging 24 residents per square mile, the Gem State has a population density that is nearly one-fourth that of the U.S. (96 people per square mile) and holds the No. 6 lowest density per square mile compared to all other states (between No. 5 being New Mexico with 18 people per square mile and No. 7 being Nebraska with 26 people per square mile).
The population density of Idaho’s nine urban counties (Ada, Bannock, Bonneville, Canyon, Kootenai, Latah, Madison, Nez Perce and Twin Falls) combined, averages 143 residents per square mile. The remaining 35 rural counties average significantly lower population density with eight residents per square mile.
Switching from population density to employer density
Population density depicts how a region’s residents are distributed; however, it doesn’t necessarily demonstrate a direct correlation with economic job opportunities. More jobs per square mile help sustain the local and commuting populations while a higher number of employers may build more economic diversity.
On a square mile basis, Idaho’s urban counties have significantly higher ratios of residents, jobs and employers than the rural areas. However, if employer density is instead defined as the number of employers compared to a region’s resident population, Idaho’s rural counties stand out with strong results.
Figure 1. Population, employment and employer density by county type, 2024
*Idaho statewide data includes employers whose location is not geocoded or is unknown
Source: U.S. Census Annual Population Estimates and TIGERweb spatial files, Idaho Department of Labor Quarterly Census of Employment and Wages (QCEW)
For Idaho employers in 2024, the two methods of calculating employer density resulted in very different conclusions. Urban counties, defined by having at least one city with a minimum of 20,000 residents, held eight of the top 10 county spots for employers per square mile.
When the number of employers was instead compared with the number of residents within the county instead of square miles, the result was significantly different as rural counties – specifically those highly dependent on tourism – claimed nine of the top 10 rankings. Commuting rural counties – where at least 25% of the labor force commutes to a neighboring metropolitan county for work – represented five of the 10 lowest counties for the number of employers per 1,000 residents.
Figure 2. Number of employers per square mile
*Idaho statewide data includes employers whose location is not geocoded or is unknown
Source: U.S. Census TIGERweb spatial files, Idaho Department of Labor QCEW
Employer density by county ranges from less than one employer per square mile in 31 rural counties to over 10 employers per square mile in both Ada and Canyon counties. Of the 31 rural counties with less than one employer per square mile, 24 of them have fewer than 0.5 employers per square mile.
Payette and Teton counties (both of which are located within micropolitan areas) represent rural Idaho by placing in the top 10 counties by employers per square mile and each have the smallest land areas of any rural county under 500 square miles. The two counties also have the highest employer density of all rural counties at 1.6 and 1.4 employers per square mile, respectively.
All urban counties, with the exception of Latah at 1.0, are home to at least 1.5 employers per square mile.
Figure 3. Top 10 counties in Idaho by the number of employers per square mile, 2024
Source: U.S. Census Annual Population Estimates and TIGERweb spatial files, Idaho Department of Labor QCEW
The land area of Idaho’s counties ranges significantly from four counties under 500 square land miles to two covering over 5,000 square miles each. The 12 largest counties in square miles are all classified as rural, ranging from more than 2,000 square miles in Bingham County to over 8,400 square miles in Idaho County.
Each county in Idaho covers an average of nearly 1,900 square miles, with urban counties averaging around 1,100 square miles and rural counties averaging over 2,000 square miles. The immense geographical footprint of these areas alone make population and employment density comparisons by square mile difficult with other counties within the state.
Employer density compared to the resident population
If Idaho’s 44 counties were equally distributed over its land area, ratios based on square miles may present a reasonable comparison. However, with some counties in Idaho covering more than 10 times the land area of others, alternative options for comparing employer density should be considered.
If we instead define employer density as a ratio of the number of employers for every 1,000 residents within a county, the top results are all mostly rural counties that follow two main themes. The first is an economy highly dependent on recreation and tourism while the second is counties that are sparsely populated.
Figure 4. Number of employers per 1,000 residents
*Idaho statewide data includes employers whose location is not geocoded or is unknown
Source: U.S. Census Annual Population Estimates, Idaho Department of Labor QCEW
Each of Idaho’s five smallest counties by population (Clark, Camas, Butte, Lewis and Custer) appear in the top 10 counties by the number of employers per 1,000 residents along with four additional rural counties that are highly dependent on tourism (Blaine, Valley, Teton and Lemhi). Combined, the five rural counties of Blaine, Valley, Teton, Custer and Lemhi account for 12 of Idaho’s 21 cities that have implemented an additional local option tax.
These areas are highly dependent on tourism for their local economy and have a higher number of employers per resident than we would normally expect for their population level.
Employers in these counties are not only reliant on the local residential population to support their business, but also on external tourism demand generated within the local area.
Figure 5. Top 10 counties in Idaho by the number of employers per 1,000 residents, 2024
Source: U.S. Census Annual Population Estimates and TIGERweb spatial files, Idaho Department of Labor QCEW
Valley, Blaine and Custer counties have the three highest ratios of leisure and hospitality jobs per 1,000 residents for all Idaho counties at 134, 134 and 83, respectively. This is compared to an average of 47 jobs statewide. Combined, leisure and hospitality employment in these three counties make up 26% of all jobs, more than double the 11% for Idaho statewide. Kootenai County, the urban county ranking the highest by leisure and hospitality jobs per 1,000 residents, comes in at 63 leisure and hospitality jobs per 1,000 residents and its leisure and hospitality jobs comprise 17% of all industry employment.
With the exception of Butte County, all other rural counties that rank highly by employers per 1,000 residents average less than nine jobs per employer, compared to 11.5 jobs per employer for Idaho statewide. This also tells us that jobs in these areas are spread throughout more small employers rather than being concentrated within a limited number of large employer establishments. Idaho’s urban counties range from a low of an average of 11 jobs per employer in Kootenai County to a high of 18 in Nez Perce County.
Although rural counties have a much lower population density than the state’s urban areas, the tourism demand for these areas is a significant aspect of the local economy. With low population density, Idaho’s rural counties are likely to have a higher concentration of small employers than urban areas – some of which employ residents working remotely from home in isolated areas. This aspect, combined with recreational rural areas having a higher share of jobs created by external tourism demand than some of their urban counterparts, allows rural and urban Idaho to report a similar number of employers compared to their resident populations.
Lisa.Grigg@labor.idaho.gov, regional economist
Idaho Department of Labor
208-696-2256
Sources:
U.S. Census Bureau Annual Population Estimates, 2020-2024 and U.S. Census Bureau TIGERweb spatial files
U.S. Census Bureau TIGERweb spatial files and annual population estimates
Idaho Department of Labor QCEW data
This Idaho Department of Labor project is funded by the U.S. Department of Labor for SFY25 as part of a Workforce Information grant (40%) and state/nonfederal funds (60%) totaling $885,703.
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