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Labor Department: Montana Wages Post Significant Gains in 2015

Preliminary estimates suggest that Montana’s average wages increased by 3.3 percent in 2015

By Beacon Staff
An excavator moves dirt at the site of a future Hampton Inn & Suites on the south end of Whitefish. Greg Lindstrom | Flathead Beacon

Montana’s unemployment rate increased slightly in February, moving up one-tenth of a percentage point to 4.2 percent, while preliminary data shows the state’s average wages have experienced notable increases, according to state labor officials.

The state added 1,300 jobs last month with payroll gains occurring across most industries. Total employment estimates, which include agricultural and self-employed workers along with payroll workers, indicated a statistically insignificant loss of 151 jobs, according to the Montana Department of Labor & Industry. The labor force expanded by 234 workers.

Preliminary estimates suggest that Montana’s average wage increased by 3.3 percent in 2015, much faster than the 0.7 percent annual increase in inflation, marking real wage growth for Montana’s workers, according to the state labor department.

Any wage gains are welcome news in Montana, a state that typically offers among the lowest average wages in the nation. According to an analysis of 2013 tax return data, Montana ranked 49th in the nation for wages.

The U.S. unemployment rate remained unchanged at 4.9 percent.

“Our state’s economy continues to expand, requiring more workers than ever before,” said Montana Department of Labor & Industry Commissioner Pam Bucy. “With future unemployment rates expected to decline below normal unemployment levels, it becomes even more important for the public and private sector to work together and deploy efficient and effective worker training programs to meet the changing needs of Montana businesses.”

State labor officials say growth in payroll jobs with slow growth in total employment levels is not unusual due to statistical variation inherent in employment estimates, but the result also suggests that self-employed workers are moving into less-risky payroll employment in response to the strong wage gains in payroll jobs that Montana workers have experienced in recent years.

Flathead County’s unemployment rate hit 7.4 percent last month, a slight increase from 7.3 percent in January. The local workforce increased from 41,006 people in January to 41,195 last month.

Lincoln County held the highest jobless rate at 12.7 percent. Sanders County and Glacier County both were tied for second highest at 10.7 percent.

The Consumer Price Index for All Urban Consumers (CPI-U) declined in February due to continued decline in energy prices. Gasoline prices fell sharply by 13 percent over the month, while the indexes for fuel oil and electricity also decreased. Core inflation, measured by the all items less food and energy index, rose 0.3 percent over the month.


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