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Idaho leads nation in job growth
Construction remains hottest sector, with thousands of jobs created in low-paying service industry

Idaho Statesman
The Idaho Statesman | Edition Date: 07-29-2006

Idaho created new jobs at a faster rate than any other state in the nation from the second quarter of 2005 to the second quarter of this year, the Idaho Department of Commerce and Labor reported Friday.

The state created 31,100 new nonfarm jobs during the yearlong period surveyed, a rate of just over 5.1 percent that easily eclipsed the U.S. rate of 1.4 percent. Nevada finished second at 5.1 percent, followed by Arizona at 4.78 percent.

Construction remained the hottest sector of the Idaho economy, with an 18 percent job growth rate. Eight thousand new jobs sprang up to support the state's housing boom.

"The evidence continues to mount on the strength of Idaho's economy," Gov. Jim Risch said in a statement.

Boise economist John Church said Idaho may have been helped to the top of the list by the fact that Arizona and Nevada have recently seen a slowing in the housing markets that have been driving their economies.

How long Idaho can generate construction jobs at its current pace will depend on how long local housing continues to defy the slowdown in U.S. home sales. "Someday the (housing) party will be over in Idaho, too," Church said.

Church said Idaho may be able to hang on longer than some states because commercial projects in the Treasure Valley and Magic Valley are still racing to catch up with all the recent residential housing construction in the area.

Meanwhile, Friday's job-creation numbers also showed that Idaho also created thousands of service industry jobs that are historically lower-paying and often don't offer health benefits.

Employment and janitorial services, along with call centers, were primarily responsible for 4,400 jobs created in the professional and business services sector. Leisure and hospitality added another 4,400 positions.

Commerce and Labor regional economist Janell Hyer conceded that Idaho continues to produce mostly service-industry jobs. But she argued that not all service industry work is low-paying, with education and health care creating 11 percent of the jobs generated in Idaho during the year.

Hyer said strong population growth is helping fuel job growth by encouraging businesses to relocate or open new operations in Idaho. Idaho saw an in-migration of 34,000 people, a growth rate of 2.4 percent, for 2004-2005, the most recent period for which statistics are available, Hyer said. Population growth for 2006 is being estimated at 2.3 percent, she said.