Article by Erik Smith. Published on Thursday, January 12, 2012 EST.
A Few Bright Spots in a Gray Picture
One good thing: Washington energy prices have remained stable.
By John Stang
Contributing writer/ Washington State Wire
OLYMPIA, Jan. 12.—Washington’s economy is recovering, but not as fast other states, and this state’s recovery is much slower than the bounce-back from 2001’s recession.
That’s what the numbers say, economists told the Senate Economic Development Committee Wednesday.
The committee was briefed by Lance Carey, an economist with the state Economic and Revenue Forecast Council, and Egils Milbergs, executive director of the Washington Economic Development Commission.
“We’ve turned the corner, at least according to these numbers here,” Milbergs said about his commission’s figures.
But the latest Washington Economic Climate Study by the revenue forecast council says that economic growth and competitiveness – when compared with other states – are among Washington’s weakest economic indicators.
What Report Considered
The economic climate study looked at numerous indicators that changed annually, with data up through 2009, 2010, and 2011. Some of the study’s highlights include:
* Washingtonians are paying less of their annual incomes in state and local taxes. In 2009, a Washington taxpayer paid $93.24 in taxes per $1,000 of income, compared to the United States’ average $102.10. That translates 16th lowest among the 50 states, compared to 21st lowest in 2008. That tax burden has steadily decreased since 2006.
* Washington’s job loss rate of 1.6 percent was the third worst in the nation in 2010, compared to the United States average loss of 0.7 percent.
* Washington’s high-wage jobs have dropped at a slower rate than the rest of the nation. Reduction of high-wage jobs ended in 2007 and then improved to a rate of 0.6 percent in both the nation and state in 2008. In 2010, the nation’s growth rate in high-wage jobs was zero, while Washington growth rate was 0.2 percent — eighth best in the country.
* Washington’s and the United States’ average earnings per job have steadily grown from 1990 to 2010, with Washington within spitting distance of 10th-best during that time. The average Washington job earned $54,866 in 2010, compared to the U.S. average of $51,739.
* Washington’s electricity prices have remained stable since 2001, while the nation’s average prices have grown. Washington had the lowest electricity prices in the nation in 2009 and 2010.
* Washington’s unemployment insurance costs have been among the highest in the nation through the 21st century so far — posting at the fifth highest in 2010.
* Washington’s foreign exports have declined, but not as badly as the rest of the nation in the past year. Value added in manufacturing has gotten worse in the past year, declining faster than elsewhere.
* Washingtonians have a better-than-average chance of avoiding being murdered — homicide rates also are considered an economic indicator. In 2010, 2.3 out of 100,000 Washington residents were murdered, compared to a nationwide figure of 4.8. Washington was the 11th safest state from murder in 2010, compared to being 16th safest in 2009.
* The state’s health index — a complicated meshing of several factors — was 11th best in the nation in 2008 and 2009, but 15th best in 2010.
A Few Recommendations
Milbergs said the state needs to help people make career transitions. Also, start-ups and imported manufacturing businesses should be encouraged, he added. He also recommended that Washington improve its infrastructure and global presence.
“We need to expand our presence across the world. … and deliver more airplanes and more hay,” he said.Your support matters.
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