How’s your paycheck looking these days? Here’s why it’s fatter for many in Whatcom.
With the labor market remaining tight, wages continue to climb significantly in Whatcom County.
The average weekly wage in Whatcom was $908 in the second quarter, a 5.5 percent increase compared to a year earlier, according to a new report from the U.S. Bureau of Labor Statistics. That increase ranked 21st highest out of the country’s largest 350 counties.
Many of Washington’s urban counties posted big increases in weekly wages. King County’s weekly wages jumped 9.3 percent to $1,605, the second-highest increase of the counties surveyed. Thurston County had a 5.8 percent increase while Pierce County’s wages rose 5.2 percent, according to the data.
Low employment a factor in pay raises
The tight labor market is a factor in the rising wages, said Anneliese Vance-Sherman, a regional labor economist for the state in an email. With a scarce labor pool, employers have less bargaining power because they need to compete against each other for qualified workers.
“As long as the unemployment rate remains low, I would expect to see wages continue to rise,” Vance-Sherman said.
Unemployment has indeed remained near record lows in Whatcom County. During the second quarter when weekly wages increase, unemployment was below 5 percent. It continued to decline, hitting 3.9 percent in September before rising to 4.2 percent in October, according to data from the state’s Employment Security Department.
That 3.9 unemployment rate in September was the lowest for Whatcom County since the current formula was put into use in 1990.
The reason for the uptick in the unemployment rate between September and October was because more people were returning to the job market, said Scott Bailey, a regional labor economist for the state. According to the data, 109,240 people in Whatcom were employed, an increase of 3,411 people. The number of unemployed people last month was 4,746, up nearly 400 people compared to September.
Who has been doing the hiring in Whatcom County in the past year? Every major industry listed by the state posted gains, according to the data. Leisure/hospitality has added 500 people locally in the past year, while the financial industry added 400 people. The number of people employed in manufacturing rose 300 in the past year, while construction added 200 people.
Whatcom County has long been known for its retail sector jobs, but other higher-paying industries are getting closer to matching that total. In October, retail employed 11,500 people, while manufacturing employed 10,500. Professional services, which includes architects and accountants, employed 8,400 people.
Across the state, seven counties had an unemployment rate under 4 percent last month. King County was the lowest in the state at 3.2 percent.