Montana State economy shows some growth

HELENA — Despite job losses in several key industries, Montana’s economy continued to grow at a steady pace in August, the state Department of Labor and Industry said Friday.
The agency’s monthly report showed Montana had 3,500 more jobs than a year ago, a 0.9 percent increase that was similar to the improvement seen in the pre vious two months.

By Bob Anez Associated Press Writer

Paul Polzin, director for the Montana Bureau of Business and Economic Research at Missoula, said the state’s growth remains lower than it was for much of the 1990s, but is much better than the economic condition of the nation where the econ omy continues to decline at the rate of about 1 percent.

The reason for the differ ence is that Montana indus tries, slow-growing when the U.S. economy was booming, were equally insulated from the national recession, Polzin said.
“ We used to have our eggs in the wrong basket,” he said. “ But the basket has changed, and now we have our eggs in the right basket.”

The relative health of Montana’s economy is also reflected in a new report by a national economic forecast ing firm called Economy.com.
The company, as it did last month, expects Montana to finish the year with the coun try’s second fastest-growing economy behind Nevada. A new report predicts an annu al job growth of 1.1 percent in Montana, compared with 1.8 percent in Nevada and an overall decline of 0.8 percent nationally.
Only 12 other states are expected to avoid shrinking economies during 2002.

The unemployment rate in Montana in August was 3.1 percent, the lowest for that month in at least 33 years. The estimated 15,000 Montanans out of work were the fewest in August since 1974.
Montana’s modest growth since last August was a result of 2,900 more service-related jobs, 600 more jobs in con struction businesses and 700 more government jobs. General building contractors accounted for 500 new jobs in the construction industry, a benefit of low interest rates, Polzin said.
However, four major industries saw declines in the past year. Mining and trans portation each lost 100 jobs, manufacturing was off by 300, and wholesale and retail trade businesses decreased by 700.

Polzin said the drop in trade jobs mostly occurred in food stores, as part of a national cost-cutting effort to increase efficiency and not a sign of poor local economies.
Earnings of Montanans did not keep up with inflation since August of last year, the labor report said. Average weekly pay for nonagricultur al workers increased to $412.92, but that 1.5 percent improvement lagged behind the 1.8 percent increase in the cost of living.

The counties with the high est unemployment rates were Big Horn. 11.8 percent; Lincoln, 7.9 percent; Glacier, 7.4 percent; Roosevelt, 7.2 percent; and Musselshell, 6.4 percent.
The lowest county jobless rates were McCone, 0.5 per cent; Petroleum, 0.6 percent; Powder River, 0.8 percent; Daniels, 1.5 percent; and Gallatin, 1.6 percent.

Among the most-populous counties, Lake had the high est unemployment at 5.2 per cent, followed by Silver Bow, 3.9 percent; Flathead and Lewis and Clark, 3.4 percent; Hill, 3.3 percent; Cascade and Ravalli, 3.2 percent; Missoula and Yellowstone, 2.6 percent; Park, 2.2 percent; and Gallatin, 1.6 percent.

On the Net:
Economy.com http://www.economy.com