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Published on Wednesday, August 16, 2006 Gazette Opinion: Surprising details of Montana's
economic growth
Montana's economy is growing. Unemployment is
low, wages are rising, and state government is projecting hundreds of
millions in unanticipated tax revenues by 2007.To understand the source of this good news, it's important to look carefully at economic data. Larry Swanson, an economist at the Center for the Rocky Mountain West at the University of Montana, reviews quarterly data from the U.S Department of Commerce to gauge economic activity. Data shows that over the past five years Montana has ranked ninth among the 50 states for personal income growth. Montana's total personal income grew 14.3 percent over five years, compared a national average of 9.1 percent. "The Montana economy, where it has been growing, has been growing fairly aggressively," Swanson said last week. Where it's been growing is mostly in the state's larger cities, including Billings. The highest growth industries - construction, health care, professional services, retail, wholesale, finance, government - all tend to be centered in cities. Construction powerhouse The powerhouse of Montana's growth in labor income has been the construction industry, followed by health care. Construction-sector income grew by $520 million between the first quarter of 2001 and the first quarter of 2006. Meanwhile, health labor income grew by $422 million. The next biggest chunk of labor income growth was $216 million in professional and technical services. Growth in mining-sector labor income, which includes oil and gas, was 12th among among 24 sectors at $126 million for the five-year period. Farm labor income actually decreased. Labor income accounts for the biggest part of personal income, but not all of it. Personal income includes investment income and transfer payments, such as Medicare and Social Security. These sources will continue to increase as the population ages. Swanson says that by 2020, Montana and Wyoming will have two of the oldest populations in the nation, rivaling such traditional retirement states as Florida and Arizona. Those demographic changes have huge implications. Older adults will want and need more health care and different housing options, and many retirees will have more disposable income as well as leisure time. Workforce training It's no coincidence that construction and health care, the two biggest labor-income growth sectors, are the focus of new and expanded educational offerings at Montana State University-Billings. These are high-demand fields for which Montana needs a well-trained workforce. Billings is growing to meet the needs of aging residents and an influx of senior citizens. Two new West End developments, Sweetwater retirement community and Autumn Springs assisted living, opened this year, as well as Magic City Terrace, a subsidized apartment complex off Main Street for older adults. A major construction project is under way at St. John's Lutheran Ministries to replace older nursing-home units with new skilled nursing cottages. Nearby on Shiloh Road, St. Vincent Healthcare is completing a clinic dedicated to geriatric patients. Last week, St. John's broke ground for a senior-living development in Laurel, while Ernest Health Inc. broke ground along Gabel Road for a 40-bed hospital for acute long-term patients. Those facilities are additions to what is already the state's largest array of senior services, health services and older adult housing. Public-policy makers, business people and educators must understand the diverse sources of Montana's economic growth. To plan well for economic development, Montana shouldn't put all its eggs in a one-sector basket. Copyright © The Billings Gazette, a division of Lee Enterprises. Talk Back!Post your comments, opinion or feedback about this story.
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Gazette or Lee Enterprises.
oh I get it wrote on August 16, 2006 9:18 AM
We have all these old people that harldy but work and don't generate tax revenus(income) and you say that is growth? As I see it, the low middle class and the poor working don't come into play within your stats, Mr. Swanson. If Montana is so robust, then how do you explain MT at the 46th position for poverty in the US???AND how do you explain that MT is ranked the 49th out of the 50 for the LOWEST WAGES in the country??? Seems to me you only handed out your "surveys" to the upper middle class and the wealthy and retired. So if we don't pound a nail-we are screwed. Of course, there are all those $6 an hr jobs cooking and cleaning for the "retired"(retirement villas) that is to keep the Mantanans just piling up profit(not)!!!If this isn't biased, then I am not alive-just a ghost walking around- typing on a keyboard!   Then why.... wrote on August 16, 2006 9:29 AM
if things are so rosy, all the whining and wringing of hands by the liberals and democrats? They all live miserable lives and are more than willing to share their misery with others. I don't understand it, but then I don't understand how the government can, with a straight face, release a report that says inflation is "tame"....or that ACT test scores are up, highest since 1991. Of course they don't say anything about dumbing down the test so any graduating moron could score well. Parents, listen up.... a friend and I were talking to four or five college students at the fair last night....they all bragged about being on the "7 Year Plan." Which is basically milking their parents for 7 years to pay for college. One bragged about skiing over 60 days last winter while "attending" U of M. Said he doesn't attend classes but is still able to get "passing" grades from his professors. Meanwhile he had, so far, spent $42,000 of his Dad's money at UofM. Some education. But I digress.....its good that everything is rosy since the democrats campaign plan is to b____ and complain about everything. |
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