Whatcom’s job market is still in disarray. These industries are bouncing back
.jpg "Construction started in spring 2021 on a $31 million project to build a new Sunnyland Elementary School, 2800 James St. The construction industry is experiencing one of the biggest worker rebounds during the pandemic as contracts and projects were in place before work stopped.")
While the overall numbers give the appearance of stability, Whatcom County’s job market is still a bit chaotic as the local economy attempts to bounce back from the COVID-19 pandemic.
Washington’s Employment Security Department reports that Whatcom’s unemployment rate was 5.4% in June, which is about the same as the previous month and in line with much of 2019 before the pandemic.
Underneath that number, however, are signs that Whatcom still has a long way to go to get back to 2019 job market conditions. Whatcom County had 6,200 fewer non-farm jobs in June 2021 compared to June 2019, yet companies throughout the area are posting all over social media and job websites looking for residents to come work for them. Local restaurants continue to shorten hours or close on slower days to give their overworked staff members a break while they look for more workers.
What’s going on?
It’s become clear that from an economic standpoint the pandemic had an impact on workers that continues to take time to shake out. One of the biggest issues would-be workers face is childcare, said Anneliese Vance-Sherman, a regional labor economist for the state.
With summer vacation underway, children are generally at home. The state recently reinstated the rule that those who are unemployed must actively look for work. That puts parents, particularly mothers, in a tough spot: Do they look for a job that pays enough to cover child care, or wait until after school is back in session?
Along with child care costs, safety is a concern. While most Whatcom County adults are vaccinated, there is a fear of bringing the virus home from a job and spreading it to their unvaccinated children.
“Vaccines for younger children will play a part in making employment possible for people, as will the way in which school resumes,” Vance-Sherman said in an email, adding that she doesn’t expect to see a major shift in the labor shortage issue until after school starts and students are able to go to class.
Would-be workers are also taking some time to return to the workforce, especially those who lost a low-wage job and are considering whether they want to do something different that might offer a higher wage, said Hart Hodges, co-director of the Center for Economic and Business Research at Western Washington University. Hodges spoke on the topic with other panelists during a Western Insights presentation on June 11.
“That job sorting is a good thing, but it takes time,” Hodges said, noting that the more jobs that are available, the longer it might take someone to settle on one they want.
Bounce-back industries
Given the uneven economic bounce back, some Whatcom County industries are doing better than others in terms of job recovery. Here’s a rundown:
▪ Construction: Given all the construction taking place on the roads and neighborhoods, it’s clear this industry is experiencing one of the biggest rebounds during the pandemic. According to the data, Whatcom County had 8,400 construction jobs in June, way up from 7,400 jobs in June 2020 and even more than the 8,000 jobs in pre-pandemic June 2019.
Vance-Sherman said construction was relatively strong heading into the pandemic and had contracts and projects in place, so it was just a matter of getting the safety protocols in place. Construction has also benefited from the continued strong housing market.
▪ Retail trade: With 10,900 jobs in Whatcom County in June, this industry is nearly back to the pre-pandemic total of 11,200 jobs in June 2019.
This is a very diverse industry, so some pockets are doing better than others, Vance-Sherman said. Clothing stores, which had a big drop in sales, had a different experience than grocery stores. There’s also quite a bit of innovation taking place that has led to different types of jobs, including managing online orders and preparing curbside pickup.
▪ Manufacturing: Whatcom County was dealt a huge blow in this sector with the closure of the Intalco Works aluminum smelter plant near Ferndale last summer. About 700 direct jobs disappeared as a result of that closure; currently Whatcom County manufacturing is down 1,400 jobs overall when compared to June 2019.
▪ Leisure/hospitality: This industry was the hardest hit in terms of job losses, with more than 30% disappearing between June 2019 and June 2020. Last month Whatcom County had 9,800 jobs in this industry, an increase of 2,000 from June 2000’s 7,800 jobs, but down from 11,200 jobs in June 2019.
▪ Government: According to the data there were 17,200 government jobs in Whatcom County last month, down from 19,000 in June 2019. All of the job losses were in the state and local positions, while the number of federal jobs remained unchanged.
Vance-Sherman said a lot of state and local government employment is tied to public education. While a lot of teachers were able to work remotely, a number of jobs like bus drivers and building maintenance positions were not needed to the same extent.
“There were also a number of local government jobs outside of education that were impacted when there were concerns about falling retail sales and the availability of local government revenues,” Vance-Sherman said.
