Jobless rate nears 3-year low

After years of stubbornly high jobless numbers in Flathead County, the pendulum finally may be swinging the other way.

The county’s unemployment rate improved to 9.2 percent in May, the best report since July 2009 when the rate was 9.1 percent. And May’s report comes on the heels of improved jobless numbers in April, too, when the rate went from 10.7 to 10 percent.

“We’re seeing signs of life in the Flathead,” said Patrick Barkey, director of the Bureau of Business and Economic Research at the University of Montana. “It does look like there are some signs of an uptick, which is certainly promising.”

This week’s announcements of a new $8.5 million Hilton Homewood Suites hotel under construction in Kalispell and $3.9 million senior housing complex in the works are among the latest projects indicating an improved local economy.

Barkey said there are better indicators of economic growth other than unemployment rates. The Federal Home Finance Agency’s index of housing prices for non-metro Montana, which includes Flathead County, has seen improvement for the last three quarters running.

“It’s starting to look more and more like the bottom of housing prices was last year,” he said.

Areas such as the Flathead Valley are “coming up off the mat,” he added.

Neighboring counties also saw improved jobless numbers in May. Lake County improved from 8.9 to 8.3 percent, while Lincoln County still posted the highest unemployment in the state, but the rate improved from 14.5 to 13.2 percent. Sanders County’s rate also improved, from 14.5 to 12.8 percent.

In Flathead County there are 39,873 people employed out of a work force of 43,897, leaving just over 4,000 people without a job.

Statewide, 1,300 jobs were added in May, the largest monthly gain since before the recession began more than four years ago, according to Labor Commissioner Keith Kelly.

“However, more job openings and better economic conditions have encouraged many people to enter the labor market,” he noted in a press release. “The increase in the labor force resulted in an increase in the unemployment rate.”

Statewide the seasonally adjusted unemployment rate was up 0.2 percent in May, at 6.3 percent. The national rate also increased slightly, ending at 8.2 percent for May.

County unemployment numbers are not seasonally adjusted.

Barkey said the bureau is about one month away from finalizing midyear economic projects for Northwest Montana. The report will be delivered in Kalispell in conjunction with the Governors’ Cup golf tournament in the Flathead Valley in early August.