Tag Archives: idaho economy

Job Creation and New Business Startups in Idaho

Idaho’s new business establishments have added more than 10,000 private sector jobs per year over the past two decades, accounting for between 20 to 30 percent of private sector gross job gains and nearly all net private sector job growth. Since the end of the last recession, the share of private sector new businesses in Idaho’s economy has risen faster than surrounding states and the nation as a whole, growing from 7 percent of all establishments in 2010 to more than 11 percent in 2016. Job creation by these private startup businesses, however, remains in decline.

Idaho startup rates and failure rates are higher than national averages

In Idaho, as with the rest of the nation, the rise in the number of businesses entering the economy was significantly stymied by the most recent recession that started in December 2007. At the end of the first quarter of 2010, the number of establishment entries in Idaho had sunk to less than 3,000 from its prerecession peak of 5,073. Since then, the downward trend reversed and establishment entries have returned to pre-recession levels.

Source: Bureau of Labor Statistic – Business Employment Dynamics. Startups are establishments less than a year old and do not include non-employer establishments

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Idaho’s Construction Resurges Post Recession

The construction industry suffered disproportionate job losses during the course of the Great Recession as property values plummeted and the over-heated housing market contracted. An oversupply of housing in many parts of the country caused construction to shrink for several quarters even after other industries had begun to grow again. During the post-recession growth period, however, Idaho’s construction industry has outperformed the rest of the country, fueled by the state’s high rate of population growth and the associated demand for housing and commercial space.

Beginning in late 2007, construction in Idaho began to shed jobs at an alarming rate. The industry contracted by almost 24,000 jobs between October 2007 and March 2009 – about 42 percent of the industry’s total pre-recession employment. While construction suffered across the country, Idaho’s sufferings were particularly acute; the state’s 42 percent industry contraction dwarfed the 29 percent loss experienced nationwide. Continue reading

Around Idaho: July 2017 Economic Activity

Information provided in this article is from professional sources, news releases, weekly and daily newspapers, television and other media.

Northern Idaho
North Central Idaho
Southwestern Idaho
South Central Idaho
Southeastern
Eastern Idaho

NORTHERN IDAHO – Benewah, Bonner, Boundary, Kootenai & Shoshone counties

Region

  • Northern Idaho witnessed at least 21 reported wildfires in July. While the actions of the forest service and other authorities prevented any of the fires from forcing evacuations or threatening structures, the number of fires was above average for July. Source: Coeur d’Alene Press

Kootenai County:

  • Construction work began on a new commercial complex in Athol, which will eventually include the town’s first grocery store as well as a hardware store, a hotel and additional light industrial and commercial space. Source: Coeur d’Alene Press
  • The Idaho Transportation Department and North Idaho College are partnering to offer a free three-week heavy equipment operator course, which aims both to fill labor needs in the construction industry and offer career opportunities to veterans, women and minorities. Source: Coeur d’Alene Press

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Idaho’s Lumber Industry Gets Boost from Trade Tariffs

Recent tariffs imposed on Canadian softwood lumber should reduce the amount of lumber the U.S. imports from Canada and boost the Idaho lumber industry this year. Softwood lumber — made from pine, fir, cedar and spruce — is mostly used for framing new houses.

Last year, according to Wood Resources Quarterly, imports from Canada accounted for 32 percent of lumber used in the United States. Less competition from Canada should boost U.S. mills’ profits, production and employment.

The countervailing duties on Canadian lumber imported to the United States range from 3 percent to 24.12 percent, averaging 19.88 percent. The U.S. Commerce Department plans to impose additional fees that would mean some lumber importers would face duties as high as 30.88 percent. Commerce says Canada is unfairly selling lumber in the U.S. below production costs, aided in part by improper government subsidies.

The new tariff is the latest step in a 35-year-old trade dispute between the two nations. U.S. lumber producers argue that the Canadian government unfairly subsidizes its lumber industry, since most timber cut in Canada comes from provincial forests. Provincial governments set prices administratively and are lower than if they were set in a competitive market. Under U.S. trade remedy laws, foreign trade benefiting from subsidies can be subject to a countervailing duty tariff to offset the subsidy and bring the price of the commodity back up to market rates.

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Washington State’s Minimum Wage Hike Affects Idaho Businesses

The state of Washington’s high minimum wage puts pressure on wages in northern Idaho, especially in the communities closest to the border — Lewiston, Moscow, Coeur d’Alene, Post Falls and the Priest River area. With Washington’s jump from $9.47 to $11 per hour on Jan. 1, 2017, wage pressures on the Idaho side increased.

In November 2015, the Washington Legislature approved Initiative 1433, which will increase its minimum wage incrementally until it reaches $13.50 an hour in 2020. After that, it will automatically increase with the cost of living. Three other states – Arizona, Colorado and Maine – also passed initiatives in November increasing their minimum wages. All three will raise their wages incrementally until they reach $12 in 2020. Prior to the election, California, New York and Oregon already established pathways to $12 an hour or more in the coming years. Altogether, 29 states and the District of Columbia now have minimum wages above the federal minimum wage of $7.25 per hour. In addition, some cities impose minimum wages above their states’ minimum wages. For example, Seattle’s minimum wage for larger employers is set to increase to $15 by 2020.

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Idaho’s Alternative Measures of Unemployment Show Significant Improvement in 2016

While the number of unemployed Idahoans has steadily declined since May 2009, jobless rates for broader definitions of unemployed – such as discouraged, underemployed and marginally attached workers – improved significantly in 2016.

The U.S. Bureau of Labor Statistics (BLS) identifies six measures, or categories, of unemployment rates based on varying components of the labor force – U-1, U-2, U-3, U-4, U-5 and U-6. (See Figure 1 for definitions.) In Idaho, the official unemployment rate falls into the U-3 category.

Idaho’s broadest measure, U-6, improved to No. 12 in the nation in 2016, three spots better than last year and 23 spots better than the No.35 ranking in 2009 as the nation was coming out of the Great Recession. The U-6 rate is the broadest formal measure of labor underutilization – or underemployment – the BLS reports. It’s determined by the total number of unemployed persons, plus all marginally attached workers, plus the total number of workers who are employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers, Many economists use this definition as the most statistically reliable measure because it uses the most robust protocols for sampling and data collection. Continue reading

Around Idaho: April 2017 Economic Activity

Information provided in this article is from professional sources, news releases, weekly and daily newspapers, television and other media.

Northern Idaho
North Central Idaho
Southwestern Idaho
South Central Idaho
Southeastern
Eastern Idaho

NORTHERN IDAHO – Benewah, Bonner, Boundary, Kootenai & Shoshone counties

Kootenai County

  • North Idaho College received a $482,000 grant from the Idaho Department of Labor to train more than 200 workers in wood products manufacturing. The grant is a partnership with Lewis-Clark State College and a consortium of wood product manufacturers in northern Idaho. Source: Coeur d’Alene Press
  • Work has begun on a $5.44 million revitalization of the Seltice Way arterial. The project – which is expected to continue into 2018 – will provide a new streetscape, roundabouts and bike lanes, as well as upgraded water and waste utilities. Source: Coeur d’Alene Press
  • Kootenai County continues to have a banner year for building permits in 2017. At the conclusion of the first quarter, the cities of Hayden, Rathdrum and Post Falls were all at or near record paces for issued building permits. Source: Coeur d’Alene Press

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