White-collar Workforce Continues to Drive the Flathead Valley’s Economy
A Montana Department of Labor and Industry report revealed the financial and professional services sector is responsible for nearly one third of the state’s economic production as banking and real estate dominate the Flathead Valley
By Maggie Dresser
In the Flathead Valley, where industries have historically centered around blue-collar jobs like logging and manufacturing, a shift has taken place to white-collar sectors like banking, real estate and tourism, which have become the region’s modern economic drivers, according to an April 406 JOBS Sector Analysis compiled by the Montana Department of Labor and Industry (DLI).
Experts say the financial and professional services sector, which includes positions in banks, insurance companies, real estate agencies, healthcare administration, law firms and more, was propelled by entrepreneurialism and a surge of in-migration starting in 2020, driving nearly one-third of the state’s economic production.
In 2024, more than 66,000 Montanans were employed in the financial and professional services sector, which comprised 13% of statewide jobs, bolstering a workforce that has grown an average of 2.4% per year over the last decade.
In northwest Montana, where growth and development has boomed in recent years, experts say finance and bank expansions have responded to the demand.
“In the Flathead, the strengths are on the finance side related to banking and real estate,” University of Montana Bureau of Business and Economic Research (BBER) Director Jeff Michael said. “Glacier Bank has been pretty successful and that’s the primary reason the banking presence in jobs are higher in the Flathead area.”
Glacier Bank Market President Mike Smith said that while the company’s employee count of 260 has been relatively stable in recent years, deposits are growing at a “very healthy rate” as northwest Montana’s population grows.
“The entire banking community is pretty healthy,” Smith said.
With branches in Flathead, Lincoln and Lake counties, Smith said commercial development in north Kalispell has significantly contributed to the bank’s portfolio, 70% of which is commercial lending while 15% represents residential and 15% is consumer.
“The Flathead is doing really well right now,” Smith said. “I think our customers are all in a good position.”
As one of Glacier Bancorp, Inc.’s 18 independent divisions, Smith said the holding company is in a strong position as it continues to meet the community’s needs.
According to the Glacier Bancorp, Inc. 2026 first quarter report, the company’s net income increased 51% year-over-year from $54.6 million to $82.1 million.
As of the quarter’s end-period on March 31, the loan portfolio had increased by 2% to $25 billion from the prior quarter.
“We opened 2026 with strong results, delivering record net income, net interest margin expansion and loan and deposit growth,” President and CEO Randy Chesler said in a press release.
While rising borrowing costs hampered demand for financial services and real estate in 2023, employment rebounded in 2024 and has been concentrated in Flathead and Gallatin counties.
Between 2019 and 2024, financial and professional services employment grew by 41% in Gallatin County and by 32% in Flathead County as strong in-migration and a hot real estate market have contributed to the rise. Urban areas also account for 72% of total sector employment where diverse labor pools, proximity to higher education and access to professional networks exist, according to the DLI report.
“It’s generally a weak sector of rural areas,” Michael said. “When you think about lawyers and marketing executives, they tend to be found in larger urban settings, and it’s historically been a small sector in a rural economy. Montana has been growing a more professional economy alongside more technical jobs.”
As the professional and finance sector grows, Michael said the natural resources sector has steadily declined while wood product prices remain low.
High mortgage rates of roughly 6.5% in recent years have led to a drop in building demand, with the framing lumber composite price per 1,000 board feet dropping to $388 in 2024, compared to $1,400 in 2021 during the pandemic-era boom.
The weak demand led to a dip in production and a decreased output while the forestry industry in Montana saw its earnings sink 5% in the second quarter of 2025 compared to the year prior, according to the U.S. Bureau of Economic Analysis.
“We’re seeing quite a bit of decline in natural resources in the Flathead,” Michael said.
In 2025, timber harvests totaled 263 million board feet compared to 653 million board feet in 2005, while last year’s earnings per worker in the forest products industry were estimated at $59,573 compared to $58,865 two decades ago.
By comparison, the average wage for a finance and insurance worker averaged $94,800 in 2024, while professional services employees earned an average of $80,500 per year, which was driven by demand in areas like engineering, information technology and consulting.
As Montana’s financial and professional services continue to generate a large share of the gross domestic product, economists say continued growth depends on the availability of a highly trained workforce.
The DLI estimates there will be 6,700 annual job openings statewide in the finance and professional services sector over the next decade, with the highest demand in administration, where more than 2,500 job openings are anticipated each year.