Changing job market of Flathead

If you look at labor statistics for the past decade, you will see an interesting trend in Flathead County - unemployment has steadily declined.

In March of 1996 it was 9.3 percent. In March of 2006 it was 5 percent. That is a substantial improvement, and a major accomplishment in light of the fact that we have traditionally attracted a labor force in excess of our needs because of the quality of life here.

Clearly, growth in the Flathead has been a good thing for many people - not just developers, but also people in the construction trades, retailers and others. A lot of the wealth has been spread around, meaning more jobs for more people.

But a declining unemployment rate also means a tighter job market, and that gives local employers a problem they haven't had for a long time - hiring and retaining quality workers.

Following the law of supply and demand, that puts upward pressure on wages, which means employers have to be prepared to make adjustments to stay competitive.

Which is why the Flathead County commissioners are being asked to approve a 3.4 percent cost-of-living adjustment in county pay, and more specifically to boost pay grades for 22 job categories. A lot of those jobs are at the lower end of the scale such as building maintenance workers and office assistants, but there has also been evidence of trouble filling slots at the department head level, too. The Office of Emergency Services, for instance, has been without a director since June 2005.

The difficulty in recruiting is easy to understand. Along with a tightening job market in the Flathead, we also have a rising cost of living. Housing, utilities and other basic needs alone account for a large chunk of most people's paychecks. That means potential employees think very carefully about their options before they commit to taking a job here. It also puts added pressure on employers to pay more in order to recruit top candidates.

Unfortunately, there is only so much money available, and budget strictures often put a hard cap on employers' generosity. Flathead County is just like private employers in this respect, too. The commissioners cannot spend money they don't have.

We don't know of any easy answer. Taxes are certainly high enough, and we don't think anyone will suggest increasing the burden on average citizens. But on the other hand, as Commissioner Watne pointed out, the county can't just keep wages artificially low without taking an even bigger hit later.

All in all, it's yet another consequence of growth, which always brings a mix of good and bad.