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18 | APRIL 1, 2015 NEW ECONOMY FLATHEADBEACON.COM
CLIMBING MONTANA’S ECONOMIC LADDER
Jobs in Montana have historically paid among the lowest wages in the U.S. But recent improvement means workers across the state could see better standards of living
Kayla Stinger.
GREG LINDSTROM | FLATHEAD BEACON
Slight improvements do continue to be made, though.
“Wage growth has occurred across all wage classes, suggesting the stan- dard of living has improved for all Mon- tanans regardless of their income level,” Amy Watson, an economist, wrote in the January economic outlook report for the state’s labor department. “As a percent- age, wages have been growing the fastest for people in the lowest wage class.”
An improving economy can help spark wage growth, as employers need to remain competitive and offer higher salaries to attract employees.
In recent years the local economy has bounced back with some of the best job growth in the state. The Flathead Job Service in Kalispell reported over 500 job orders in February.
“In comparison, in the depths of the recession, there were months in the win- ter in 2011 when we might have 40 jobs posted,” Nelson said. “To exceed 500, to us that’s a good sign.”
Nelson said the jobs are in a variety of fields, reflecting the overall improve- ment of the county’s economy.
But as these jobs sit vacant, the ques- tion emerges: why isn’t the labor force quickly snatching them up?
Besides low wages, another common message that Nelson frequently hears is that employers are having a hard time finding employees with proper training or skills. For example, manufacturing companies need employees who know how to work the necessary machinery. This is where FVCC has emerged as a vi- tal partner in helping retrain the work- force, adding programs that are relevant to the local economy.
“If you improve the education level, that will raise all boats,” Eldredge said. “Not only will folks who used to be mak- ing low wages start to earn higher wages, but there will be less low-wage people to go around.”
This is the strategy Stinger took.
“I talk to other working moms and I tell them, ‘It’s tough but you’re going to feel great at the end of it when you ac- complishment your goal,’” Stinger said. “What I see for me and Kwynn in the fu- ture will definitely outweigh what I have going on right now.”
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By DILLON TABISH of the Beacon
At 24, Kayla Stinger is a single mother going to school and working a full-time job.
Fortunately, she found work in the health care industry, which pays bet- ter-than-average wages, and two years ago she decided to try to improve her and her daughter’s life by adding new job skills. She enrolled at Flathead Valley Community College and has attended classes during the week and worked the night shift as a nurse at North Valley Hospital in Whitefish from 7 p.m. to 7 a.m.
“It’s been a battle and it’s been a daze because I don’t get a day off,” she said. “It’s tough because I miss a lot with (my daughter) Kwynn. I’m still there for her but I feel absent.”
This May, Stinger will graduate with an associate’s degree in surgical technology, which she hopes will help her find a career that supports her and her daughter in the long-term.
Stinger’s story is a familiar one in the Flathead Valley, where wages are the second lowest in a state already plagued by some of the lowest paying
jobs in the U.S.
According to the latest data, Mon-
tana ranks 47th in the U.S. for average wages, behind only Mississippi, Idaho and South Dakota. A decade ago, Mon- tana ranked last.
Efforts to improve the wage situa- tion have made progress, as the state’s wage growth has outpaced the nation- al average for the last 10 years, signal- ing economic growth and an increase in the standard of living for working Montanans.
But the problem remains far from solved.
“We keep hearing from employees about wages being so low,” Bill Nelson, manager of the Flathead Job Service, said. “It’s a battle we’ve been fighting for a long time. It’s embarrassing, real- ly. We talk a lot about losing our work- force. Our young people go to college here and then go out of state to find good jobs.”
The average hourly wage for all oc- cupations in Montana was $18.79 an hour and $39,090 annually in 2014, according to Montana Department of Labor and Industry data. The Flat- head Valley has the second lowest av-
erage wages in the state by region — $17.79 per hour and $37,000 annually.
Economists cite several reasons for Montana’s struggles. For starters, rural states tend to struggle with this problem worse than metropolitan ar- eas where large corporate headquar- ters and other big businesses build up a solid foundation for the economy.
There’s also something economists call the “window tax,” which referenc- es the high quality of life that scenic places like Western Montana offer.
“It’s an actual thing. People are willing to take a discount on their wag- es to live in a place like this,” said Brad Eldredge, a former economist and the current director of institutional re- search, assessment and planning at FVCC.
The types of industries in the labor market also play a role. Places such as the Gallatin Valley are seeing higher wage gains due to a growth in technol- ogy jobs, which tend to pay more.
On the other hand, some of the lowest paying jobs, on average, are in food service, accommodations and retail, which are large sectors in the Flathead Valley.
FVCC HOSTS JOB FAIR
WITH OVER 75 EMPLOYERS
Job seekers are welcome to attend the 2015 Flathead Valley Job Fair at Flathead Valley Community College on April 16. The free event is from 3-7 p.m. inside the Arts & Technology Building.
Last year’s event attracted more than 600 active job seekers and 75 employers.
For more information, visit www.fvcc.edu/ flathead-valley-job-fair.html.