Montanans are doing all right
Chin up, Montana, it’s a great time to live and work in Big Sky Country.
Don’t take our word for it, the proof is in the pudding.
Despite the grave and downright apocalyptic depiction of the U.S. that political hopefuls are spewing in the lead-up to Election Day, a wide swath of recent economic indicators shows a state and nation that’s on sturdy footing.
Notably, last week the Federal Reserve slashed its interest rate by a half-percentage point, marking its first cut in more than four years. The markets promptly soared, and fiscal analysts say more reductions are likely to follow as the rate of inflation continues to cool closer to the 2% sweet spot.
What does this mean for you? Consumers can borrow more liberally when rates fall, but so can businesses, which positively affects overall hiring and wages.
Wonks will argue over whether the rate cut should have been sooner or later, or been higher or lower – but that’s not as important as the fact that it was cut at all. Dropping the interest rate is a sure sign of economic recovery after a long and rocky road coming out of Covid.
Nationally, hiring gains have stayed steady with another 142,000 jobs added last month, while the U.S. unemployment rate is hovering around just 4.2%. Workers are making more too, with the average hourly earnings ticking up by 3.8% over the last year.
Managing inflation and job growth is a delicate balance, and under Trump-appointee Jerome Powell, the Fed has done a commendable job of navigating serious turbulence while delivering the “soft landing” they have been aiming for.
In Montana, the Department of Labor and Industry’s 2024 “Labor Day Report” reveals even more signs of a steady economy.
According to the report, Montana added over 30,000 jobs through the first half of 2024, while the average wage earned by Montana workers grew by 5% over the last year. The jobless rate remains near record lows at 3.2%, with the state’s labor force hitting a record high of over 580,000 mid-way through 2024.
Looking at a wider timeframe, personal income in Montana has grown by 7.5% annually since 2020 – ranking Montana fourth in the U.S.
Like most of the nation, Montana’s economy is humming along just fine, aside from a stingy labor shortage that is still affecting some industries.
“The Montana economy has shown consistently strong growth under your leadership,” Sarah Swanson, Department of Labor and Industry commissioner, cheered in her message to Gov. Greg Gianforte. “The state’s workforce is at an all-time high, unemployment is near record-lows and very strong wage growth means an increased standard of living for hard-working Montanans.”
High praise for a job well done.
Of course, it’s not a spotless resume. Montana’s housing costs remain out of reach for most and unreasonable property taxes are absolutely affecting the overall economic mood. Nationally, the cost of gas and groceries is falling, but still inflated enough to ding the monthly household budget. (Have you seen the cost of cereal and eggs these days? Ridiculous.)
Yep, there’s work to be done.
Just don’t fall for the ginned-up rhetoric in those ominous political ads. Hit mute, step outside and enjoy these fine late-summer days.
We’re doing all right.