Missoula News

Montana Economy

Montana Loses Jobs as Construction and Support Services Decline

By Robert Struckman, 11-24-08

Montana’s unemployment rate has inched upward to a still-healthy 4.8 percent, according to the most recent figures from the Montana Department of Labor and Industry, as every sector but healthcare and hospitality services contracted.

“Overall, Montana has been weathering the economic situation pretty well,” said state economist Aaron McNay. “I see Montana following a path similar to the rest of the nation.”

Montana’s economy, it seems, is slightly better—or its downturn is delayed—compared to the national economy. The national unemployment rate in October hit 6.5 percent, up 0.4 percent from the previous month. Montana’s rate increased at half that rate, at 0.2 percent. Montana actually added 900 jobs, according to one set of statistics, from September to October.

From January to October this year, the hardest hit areas have been the construction, manufacturing and business services industries as well as another category that’s harder to track—self-employment and farm labor.

Construction lost more than 2,000 jobs, according to seasonally adjusted numbers from the state. That decline has been expected, as the construction industry nationwide has been collapsing without a sign of recovery.

The housing downturn tugged at other categories as well, as the professional and business category (which includes legal services, tax preparation, payroll services, engineering, landscape architecture and other professional and business fields) lost 1,500 jobs, McNay said.

Administrative and support services also declined, losing 1,000 jobs over the same time period.

Montana’s Labor and Industry economists use two basic sets of figures to analyze the state economy. The numbers don’t match exactly, McNay explained, because one includes all wage earners and the other excludes the self-employed and farmers.

By comparing the two, McNay estimated that about 1,500 jobs in agriculture and self-employment fields were lost. Those would be related to falling commodity prices and, again, the collapse of the housing industry, which has hammered small businesses. Government employment also saw a slight decrease, seemingly attributed to city governments trimming payrolls.

Healthcare, social services and the jobs falling under the category of leisure and hospitality services have both added jobs since January.

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