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LABOR FORCE & EMPLOYMENT IN SOUTH CENTRAL IDAHO

South Central Idaho consists of eight diverse counties: Blaine, Camas, Cassia, Gooding, Jerome, Lincoln, Minidoka and Twin Falls with total population estimates released July 2008 at 176,400, growing 10.7 percent over the last decade. The largest county in the region is Twin Falls County which grew steadily from 1998, increasing from 63,020 to 75,296 in 2009. Recreation opportunities are abundant in the south central region from world famous ski resorts to golf courses cradled in the Snake River Canyon, hunting, fishing, white water rafting of Class IV rapids, base jumping and rock climbing. The College of Southern Idaho custom designs reasonably-priced educational and training programs based on projected needs of area employers and students, with satellite campuses throughout the region. Major industries include manufacturing, tourism, dairy production and farming.

*Idaho Department of Labor, 2011

South Central Labor Market Information

Although the economy in TWIN FALLS COUNTY remains heavily tied to agriculture, economic developers have succeeded in diversification. Concerted efforts by community partnerships yielded new jobs in various economic sectors. These investments spurred development of new subdivisions that sent new housing permits to a peak of over 650 in 2005, slowing to under 200 in recent years.

Before the recession, unemployment peaked at 6.9 percent in 1992 and gradually fell to a record low of 2.4 percent in 2007. The area experienced a lag going into the current recession with job losses not occurring until the fourth quarter 2008 and a doubling of unemployment estimates in 2009. Even as the civilian labor force has steadily grown, Twin Falls County remains below the U.S. and Idaho unemployment rates. In the fallout from the 2001 recession, Twin Falls and Jerome counties consistently outperformed the rest of the state.

Twin Falls County posted a strong gain in retail and service jobs as big box retailers converged on the entrance to the city and its main artery. A Wal-Mart super center opened in summer 2009 along with two hotels and a long-awaited new high school. The new regional medical center is scheduled to open in 2011 with strong prospects for additional medical office development in the vicinity. The College of Southern Idaho’s new health science building opened in February 2010.

*Idaho Department of Labor, November 2010

Twin Falls County Work Force Trends

Seasonally adjusted unemployment in JEROME COUNTY was falling prior to the recession. It dropped from a high of 4.6 percent in 1998 to a low of 2.5 percent in 2007, driven by economic diversification, development and growth in the dairy industry. The current downturn has unemployment creeping back up but not to the record levels of 1983 when the average adjusted rate was 9.7 percent. While dairy has provided many stable jobs directly and indirectly, it remains a volatile commodity. Jerome County should continue to outperform the nation and state. The economic outlook remains optimistic with continued development of Crossroads Point Business Center. Work on a new St. Benedict’s Hospital should start in 2011. The concerted efforts of economic development professionals toward green energy industry is expected to pay off over the next decade with the help of Jerome’s convenient location on Interstate 84 and job creation efforts emphasizing industry clusters.

Hilex Poly, an advanced plastics manufacturer that makes grocery bags, and Idaho Milk Products with its new state-of-the-art milk processing plant are examples of new companies requiring workers with high skill sets. The dairy industry continues to be a major factor in the economy and community, drawing feeder businesses such as Jerome Cheese, West Farm Foods Inc. and WOW Logistics.

*Idaho Department of Labor, November 2010

Jerome County Work Force Trends

MINIDOKA COUNTY traditionally has a high unemployment rate. Still heavily dependent on agriculture and food processing, the county economy has diversified to include durable manufacturing and wholesale and retail trade tied to agriculture. Wages tend toward the low end which makes the area appealing to new businesses. New employers have been willing to pay higher wages than the norm. Still the new jobs provide much-needed health benefits. Gossner Cheese was lured to Burley’s industrial park that has developed a list of tenants that belies its agricultural base. Renewed economic vitality, the area’s scenic beauty and the lure of nearby recreation are drawing new residents. Minidoka County is commonly combined with Cassia County and referred to as the Mini -Cassia area. The city of Burley lies in both counties and is divided by the Snake River but both counties are linked economically, politically and socially. The area offers a labor pool with a strong work ethic and a strategic location with convenient access to commercial rail and truck transportation.

*Idaho Department of Labor, November 2010

Minidoka County Work Force Trends

CASSIA COUNTY has traditionally experienced higher unemployment than the rest of south central Idaho. Since 2004, companies such as Dutchmen Manufacturing, a large scale RV manufacturer, and Mulholland Positioning Systems Inc., which makes gait assistance devices for disabled children and adults, have opened. DOT Foods, a national re-distribution company, opened its state-of-the art warehouse in 2008, attracted by convenient shipping access along Interstate 84. Packaging Specialties opened its shrink wrap and printing operation in 2008. Hy-Line North America, an egg hatching operation, is shipping chicks from its new plant in Burley.

In 2007, Cassia County’s unemployment rate dropped almost a full percentage point to a record low 3 percent. Commercial and home construction began to outpace the region, state and nation just prior to the downturn and mortgage lenders saw the lion’s share of 2009’s production originate in the Mini-Cassia area. Cassia County’s low real estate prices, job opportunities, location on I-84 and proximity of outdoor recreation will continue to be a draw. The outlook for the county’s job and labor force is strong over the long run.

Idaho Department of Labor, November 2010

Cassia County Work Force Trends

The civilian labor force has been steadily growing in GOODING COUNTY over the last decade, from more than 6,600 in the late ’90s to 8,400 in 2009. The unemployment rate has fluctuated from a low 2 percent in 2007 to 7.7 percent by the end of 2009 as the recession was hitting bottom. It has remained well below state and national rates. The dairy and cheese processing industries, which provide year-round employment, have provided higher paying, stable jobs. The rapid growth in dairies has slowed in recent years as environmental concerns forced the Gooding County Commission to tighten standards for large livestock operators. The long-term forecast for Gooding County is an eventual return to low unemployment and tempered growth.

Idaho Department of Labor, November 2010

Gooding County Work Force Trends

Sitting at an elevation of 2,569 feet above sea level, GLENNS FERRY has a population of approximately 1,600. Median household income in 2009 was $35,672 and per capita income was $15,509.

BENEFITS & LABOR FORCE COMPARISONS:

Economy.com ranks Idaho the second lowest state in the West in overall cost of doing business.

COMPARISONS - OVERALL BUSINESS COSTS IN WESTERN STATES*
Idaho 90
Arizona 98
California 112
Colorado 102
Nevada 95
Oregon 97
Utah 92
Washington 101
* Moody's economy.com Index

Contact: Jan Roeser, Regional Economist, Magic Valley, Idaho Department of Labor

208-735-2500 ext. 3639


LABOR COST COMPARISONS

Labor Force and Employment
Annual Average Labor Force Data
Area Civilian Labor Force Employed Unemployed Percent Unemployment Rate
Cassia 12,626 11,829 797 6.3%
Gooding 10.934 10,310 624 5.7%
Jerome 10,230 9,266 964 9.4%
Minidoka 11,429 10,635 795 7.0%
Twin Falls County 38,502 35,554 2,949 7.7%

* Idaho Department of Labor - October 2010

UNEMPLOYMENT COSTS:

Idaho’s unemployment insurance program adjusts annual employer rates more equitably. This new structure, adopted in 2005, makes the same percentage change, up or down, in the tax rate of every employer, regardless of the experience rating. This new tax mechanism also triggers lower tax rates than the previous system under similar economic conditions.

Average Unemployment Insurance Costs, New Employers 2008*
 Maximum Wage Base Taxable Amount New Employer Rate Contribution
Idaho $33,200 $6,440,000 1.302% $83,848
Arizona $7,000 $1,400,000 2.0% $28,000
California $7,000 $1,400,000 3.4% $47,600
Colorado $10,000 $2,000,000 3.1% $62,000
Nevada $25,400 $5,050,000 3.0% $151,500
Oregon $30,200 $6,040,000 2.8% $169,120
Utah $26,700 $5,340,000 5.4% $288,360
Washington $34,000 $6,280,000 2.70% $169,560

* Payroll-Taxes.com, May 2009 

WORKERS' COMP RATES:

Idaho employers with workers’ compensation insurance pay some of the lowest premiums in the country. If lower-than-normal rates create a surplus, policyholders save in the form of rate deviations or actual dividends.

Annual Workers’ Compensation Costs in Western States (in thousands) 2008*
  Rate Per $100 of Payroll Average Annual Wage Total Cost
Idaho $0.68 $24,120 $32,320.80
Arizona $0.83 $35,370 $58,714.20
California $3.03 $29,370 $177,982.20
Colorado $1.56 $27,440 $85,612.80
Nevada $1.34 $26,480 $70,966.40
Oregon $0.86 $28,420 $48,882.40
Utah $0.98 $24,980 $48,960.80
Washington $29,590 $128,960.00
*Washington is a composite rate, both employer and employee contribute to the cost.
Idaho State Insurance Fund, U.S. Bureau of Labor Statistics.
Note: Rate shown is for ID Class Code 3681.