Wages on rise in Idaho

By JUDD WILSON

Staff Writer

COEUR d’ALENE — Of all 50 states, Idaho had the nation’s largest growth in wages by percentage, with a 5.3 percent boost from 2016-17.

According to the U.S. Department of Commerce’s Bureau of Economic Analysis, the national average was 3.1 percent. The U.S. Census Bureau also said last week that Idaho is the nation’s fastest-growing state by percentage of population growth, with Coeur d’Alene ranking as the fifth-fastest growing metropolis in the nation. The metropolitan area consisting of all Kootenai County grew by 2.9 percent from 2016-17, increasing the number of local residents from 153,144 to 157,637.

Idaho Department of Labor regional economist Sam Wolkenhauer attributed the local increase in wages to the influx of older residents who come from the more expensive Pacific Coast with money to spend. Combined with a low unemployment rate here, the older newcomers’ demand for labor in construction, consumer services, and health care puts upward pressure on wages, Wolkenhauer said.

The state’s seasonally adjusted unemployment rate held at 3 percent for the sixth consecutive month in February, said an IDL press release March 23. The Coeur d’Alene area added 1,600 jobs over the last year, said the release.

Wolkenhauer said many employers have difficulty filling open job positions of all sorts, from seasonal, part-time jobs to full-time jobs requiring advanced education. IDL forecasts about 51 percent of the new jobs in Idaho will require a bachelor’s degree or some sort of certificate over the next decade, he added. Demand for skilled laborers is acute in the trades related to construction.

“There just aren’t enough to keep up with all the permits and all the building,” said the economist.

Wolkenhauer predicted the mix of local labor shortages and increased consumption will continue to raise wages for the foreseeable future.

However, said Coeur d’Alene Chamber of Commerce CEO Steve Wilson, though the area benefits from a net in-migration of retirees, the net out-migration of young locals is cause for concern.

“Young folks that we train and get skilled jump ship” for other parts of the country with more jobs and higher wages, he said.

Wilson said the local economy needs the average wage and average household income to grow, which “puts some businesses in a dichotomy” since they profit from low wages. Wilson said his conversations on the topic of wages have revolved around supporting businesses that can provide living wages for local families.

Despite recent growth in wages, Idaho still ranks 44th out of the 50 states in per capita income, according to the BEA. By comparison, Wyoming ranks 8th, Washington 9th, and Montana 35th. According to MIT’s Living Wage Calculator, the living wage for a family of two adults and two children in Kootenai County is $25.30 per hour.

Hayden Mayor Steve Griffitts serves on the Coeur d’Alene Area Economic Development Corporation Board of Directors. He credited employers such as Kootenai Health for partnering with Jobs Plus to bring in companies that pay higher wages and have benefits.

“We’ve got to bring — and are finding success in bringing — high-tech, medical-related, and manufacturing-related positions to the area,” Griffitts said.

Kootenai Health Executive Vice President Danny Klocko said the institution has had to prioritize employee compensation amid its 40 percent growth since 2011.

“Health care is a very competitive industry and in order to recruit and retain the best employees, we need to offer competitive wages” plus robust benefits, Klocko said.

Coeur d’Alene Area EDC President Gynii Gilliam emphasized that while there is still progress to be made, trends point in the right direction.

“We’re very excited that wages are growing,” she said. “That is one of our goals, to keep bumping up those wages. We want to make sure everyone is able to earn a good living in our area.”