With worker shortages still an issue in Whatcom County, wages are on the rise locally
While the pandemic continues to be a struggle in many ways, one trend for Whatcom residents is that more people who are actively looking for a job are finding them and they are getting paid more to do it.
Three economic reports with local data are showing some positive signs heading to the end of what’s been a very challenging year:
▪ Jobs: Whatcom County’s unemployment rate in October was 4.3%, unchanged from the revised September rate according to the Washington State Employment Security Department. The U.S. federal reserve considers full employment to be around 5%, so workers continue to have leverage in the job market over those doing the hiring.
The 4.3% rate is the lowest Whatcom County has posted since the fall of 2018.
While the unemployment rate is low, the number of jobs in Whatcom County has not returned to pre-pandemic levels. According to the ESD, Whatcom’s non-farm jobs totaled 93,400, which is 5,900 more than in October 2020. It’s still 3,100 fewer jobs than in October 2019 before the pandemic hit. The number of people actively participating in the job market also remains below pre-pandemic levels.
The industries that are taking longer to recover from the pandemic include manufacturing and leisure/hospitality. Manufacturing jobs in October 2021 was down 1,400 compared to October 2019, while leisure/hospitality was down 1,200 for the same period.
▪ Income: Personal income in Whatcom County rose 5.9% in 2020 compared to 2019, according to data from the U.S. Bureau of Economic Analysis. That’s close to the national average increase of 6.2%
On a per capita basis, Whatcom residents averaged $52,787 in personal income last year. That personal income includes government relief payments and other financial stimulus during the pandemic.
Wages continued to rise through the end of September of 2021. The U.S. Bureau of Labor Statistics estimates the average weekly paycheck in Whatcom County in the third quarter was $1,031, a 6.1% increase compared to the same period in 2020.
Whatcom’s wage increase was higher than most of the Washington counties studied, although King County continued its torrid pace, posting a 10.8% increase for an average weekly wage of $2,166.
At this stage of the pandemic, these numbers are to be expected, said Hart Hodges, co-director at the Center for Economic and Business Research at Western Washington University. One thing he would caution with the average wage numbers is that during a shock like the pandemic where a lot of jobs were lost, it’s the higher-wage jobs that tend to come back first, followed by the lower-paying jobs.
“Average wages may fall as more food service, hotel, and other jobs come back,” Hodges said in an email, but also noted that wages in lower-paying jobs are going up because of inflation and the labor squeeze.
Going forward, one thing to watch is whether people who have taken time off of work start to come back soon, Hodges said. Some have left the workforce because of retirement, but others have been hesitant to return because of the pandemic; some are waiting to see what jobs pop up and many are still dealing with child care challenges.
