Home Back Issues July 2007 Northwest fundamentals ahead of nation's

Northwest fundamentals ahead of nation's

| Print |  Email
Archives - July 2007
Sunday, July 01, 2007
0707MarplesChart.gif

Quick, what do the Boeing 787, cheap electricity, Microsoft’s Vista operating system, high-priced oil, the weak dollar and solar-grade polysilicon have in common?

Answer: All help keep the Pacific Northwest economy humming along at a relatively brisk clip. The region finds itself happily out of step with weak U.S. economic fundamentals. 

The U.S. economy has slowed dramatically.  First-quarter GDP growth (1.3%) was the slowest in four years. Yet parts of the Pacific Northwest are flat-out booming.  Montana had the nation’s lowest March unemployment rate (2.0%), and its boom has spread to all sectors of its economy. Part of the credit goes to rising standards of living in “Chindia” — China and India. Rising global demand for raw materials including copper has reinvigorated Montana’s economy.

Most areas in the region not booming are growing at rates well above the U.S. average. The region’s relative prosperity is widespread geographically, as shown in the chart.  (The Seattle area comprises three counties and includes Tacoma and Everett, the Portland area seven counties, including five in Oregon and two in Washington.)

Evidence of the region’s strength is not hard to find. Payroll employment in Idaho in 2006 grew at more than twice the national average.  Idaho’s 2.8% March unemployment rate was the lowest in at least 30 years.

Montana and Idaho are essentially at full employment. Because wages are relatively low in both Montana and Idaho, neither state is pulling in a lot of working-age migrants (as opposed to retirees). Growth in both states may be hampered in the future by slow-growing labor forces.

In Washington, Oregon and Montana, payrolls last year grew roughly 50% faster than average. Unemployment in Washington is also at the lowest in more than 30 years.

Among the five states we track closely, only Alaska turned in sub-par 2006 payroll growth. But don’t fret over Alaska’s economy. The Last Frontier state is an enormous beneficiary of high oil prices and is on track for its 20th consecutive year of employment growth. Job growth slowed considerably in the first quarter in Washington and Idaho. Oregon has slowed even more; it currently grows at only half the 3.0%-plus it averaged during most of 2006.  Yet all three continue to grow employment at above-average rates.

— Excerpted from Marple’s Pacific Northwest Letter, editor Michael Parks. For information about this biweekly report on Northwest economic trends, visit www.marples.com.

 

More Articles

The global challenge

News
Friday, June 27, 2014
062714 thumb globalmarketBY JASON NORRIS | OB BLOGGER

Over the last several months we have seen a wave of cross-border acquisitions, primarily U.S.-based companies looking to purchase non-U.S.-based companies. There are a few reasons for this, but the main culprit is the U.S. corporate tax system. The United States has one of the highest corporate tax rates in the world.


Read more...

Who said we should sell in May?

Contributed Blogs
Friday, July 18, 2014
BullMarketBY JASON NORRIS | OB GUEST CONTRIBUTOR

Back in May, we shared a common Wall Street quote about investing, “Sell in May and go away.” Fast forward to July and the most common question we have been getting from clients is, “When is the market pullback going to occur?”


Read more...

Charged ride

June 2014
Thursday, May 29, 2014
0614launchBY JESSICA RIDGWAY

Brad Baker, CEO and co-founder of Works Electric, is a good husband. His wife, an OHSU employee, sought a more efficient way to commute up Marquam “Pill” Hill, so she asked Baker to build a transportation solution.


Read more...

2014 Best Green Companies to Work For announced

News
Wednesday, May 28, 2014

100BestGreenMore than 350 people turned out today for Oregon Business magazine’s sixth annual celebration of the 100 Best Green Companies to Work For in Oregon.


Read more...

Oregon Business wins awards

News
Monday, June 30, 2014

ASBPEOregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.


Read more...

100 Best Green Companies Keynote Speech

News
Friday, May 30, 2014

green2014-069Watch the 2014 100 Best Green Companies keynote speech by Eric Friedenwald-Fishman.


Read more...

Blips and trends in the housing market

News
Thursday, June 26, 2014
062614 thumb realestateBY ERIC FRUTS | OB BLOGGER

Last year, the housing market in Oregon—and the U.S. as a whole—was blasting off. The Case-Shiller index of home prices ended the year 13% higher than at the beginning of the year. But, was last year a blip, or a trend?


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS