Whatcom County Commercial Real Estate
Higher wages in Whatcom County can be a good indicator that business is doing well. Stronger wages help Whatcom County commercial real estate.
Whatcom’s Wages Are Catching Up
DAVE GALLAGHER
It appears some progress is being made when it comes to employee wages, but Whatcom County still lags when compared to the rest of the state.
Last week the Washington state Employment Security Department released its Quarterly Census of Employment and Wages report for the third quarter of 2006.
The report, which draws data from all companies that are mandated to cover workers for unemployment insurance, found that the average weekly wage in Whatcom County was $633, a 3.6 percent increase over the same period last year.
The average weekly wage in the state is $823, a 2.7 percent rise from the third quarter of 2005, ranking 10th highest among all the states. So at least Whatcom County’s rate of increase was ahead of the state average for that time period.
"The weekly average is not seasonably adjusted, so the weekly wage wouldn’t be an accurate number to figure out an annual salary," said Evelina Tainer, an economist for the state.
There’s been a perception that Whatcom County wages are much lower than wages in other parts of the state, and the numbers bear that out.
The difference is particularly striking when compared to the Seattle area: King County’s average weekly wage of $1,043 in the third quarter of 2006 was 65 percent higher than Whatcom’s.
That could be an unfair comparison, however, because the Seattle area dwarfs everyone else when it comes to the weekly wage average and even skews the statewide average. The next counties that have the highest average wage are Benton County ($808), followed by Snohomish ($799), Thurston ($734) and Clark ($723).
Whatcom is tied with Skagit for 12th on the list. The only county with a similar population base that makes less than Whatcom is Yakima, which averaged $537 a week.
Where we are in terms of wages is not only important for employees, but for employers as well.
Higher wages can be a good indicator that business is going well because firms can pay those wages; it also is an indicator of the demand for workers in an industry.
Higher wages are also good news for the overall economy; with higher wages in the pockets of employees, more of the money can be circulated around the community.
Some Whatcom County industries had differing results, compared to the state average.
In the retail trade, which includes food, clothing and gift stores, and gas stations, the average weekly wage in Whatcom County is $465. Statewide, the average is $547. In construction, the average weekly wage in Whatcom County is $905; the state average is $843.
"Those examples make some sense," said Ivars Graudins, who supervises the area labor market program for the state. Construction wages could vary based on what the big projects are and whether companies can find the workers. With all of the construction in the Seattle area, construction firms in other counties have found it challenging to find workers. In retail, Whatcom County has a strong tourism industry, which tends to employ more part-time workers than other retail businesses.
"It’s very much about how much demand there is for that type of worker,” Graudins said.
"The low unemployment rate Whatcom County has experienced may be a reason wages are picking up steam," Graudins said.
For much of the year, Whatcom County’s unemployment rate was less than 5 percent, which constitutes full employment according to some economists.
If unemployment remains low in Whatcom County, it should lead to even higher weekly wages, allowing us to catch up to the other similar size counties that are higher on the list. |