Western Magic Valley, Idaho adds thousands of jobs

Twin Falls and its nearest neighbors are fine places to seek a job these days.

"The western Magic Valley continues to be a leader in the state and, in many cases, the nation for job creation and economic vitality," said Greg Rogers, a regional labor economist for Idaho Commerce and Labor.

By Virginia S. Hutchins
Times-News writer

http://www.magicvalley.com/news/business/index.asp?StoryID=5911

Home building is less robust than last year, but still hearty. High milk prices and demand for dairy products spurred hiring by local dairies and processors. Twin Falls-area consumers are confident (read that as spending nicely) and new retailers have opened recently, with more on the way. Americans are vacationing despite costly gasoline and war worries, and local lodging sales are on the rise.

On the other side of the ledger are severe drought and low average wages.

Local leaders can’t make rain, but they’re trying to lure new employers that offer fatter paychecks and benefits.

Those efforts had a significant setback in the second quarter.

Local workers learned in late May that Hydro Fitting Manufacturing Corp.’s plan to relocate from California to Twin Falls this year had fallen victim to rising interest rates and construction costs. The manufacturer of high-precision hydraulic valves and fittings, and its three dozen jobs, won’t be coming to Twin Falls after all.

But close on the heels of that news was Veterinary Pet Insurance’s June announcement that it intends to establish a claims-processing center in the planned North Haven Business Park in Twin Falls by fall 2005. The Brea, Calif.-based company would hire 100 to 150 employees upon its arrival — including claims processing, sales, clerical and administration positions — then likely expand to 250 workers in three years.

Standout statistics

In Jerome, Gooding and Twin Falls counties combined, seasonally adjusted unemployment ended the second quarter at 4.1 percent. That was nine-tenths of a point below the statewide 5.0 percent joblessness forecast for June.

Commerce and Labor frequently revises its jobless-rate data. Its most recent computations pegged the three-county local labor market’s seasonally adjusted rate at 3.5 percent unemployment in April and 3.9 percent in May.

As the quarter progressed, the market’s jobless rate rose slightly above year-earlier levels. Rogers attributed that trend both to gas-price-inspired caution by businesses that cater to travelers, and to the low wages that had multiple-job holders competing with students who entered the work force as summer began.

"While job supply is adequate for all, it took longer for workers to get settled in, hence a slight bump up (in the jobless rate) in June 2004," Rogers said.

Western Magic Valley’s jobs pay, on average, less than Rogers figures families need to get by. But there are plenty of jobs out there.

In April-to-June data not adjusted for seasonal fluctuations, Jerome, Gooding and Twin Falls counties combined gained an incredible 5,042 nonfarm jobs compared with the second quarter of 2003.

That’s a 12.6 percent gain.

That’s huge. Until early 2004, when the job total was up 13.8 percent from a year earlier, the three-county market hadn’t grown anywhere near that rapidly for years.

The second quarter’s average number of nonagricultural jobs in the three counties, at 45,162, compares with second-quarter 2003’s average of 40,120. That’s a much more exciting story for job seekers than the 2.2 percent, 843-job growth between the second quarters of 2002 and 2003.

"There’s a lot of interesting things going on in the valley, and our job market and job creation numbers are excellent," Rogers said.

The outlook

Rogers expects the slight slowdown in job creation, compared with earlier this year, to be temporary. Rising mortgage costs could slow new-home building, but incoming employers such as Veterinary Pet Insurance will stimulate some relocation and in-migration, he said.

Also, several business construction projects are on the horizon.

Hamilton Manufacturing Inc., which produces mulch and cellulose insulation at its Twin Falls plant, this summer launched a $3.5 million, two-year upgrade and expansion project that will both boost efficiency and create jobs for local workers.

Developers hope to clear the way for Lowe’s, the nation’s second-largest home improvement retailer, to set up shop on Blue Lakes Boulevard North, on the 20-acre former site of Weston Plaza Hotel and Convention Center.

"Market-driven jobs such as retail and services seem to be increasing at a good rate, and really no end is in sight with new retailers planning to locate in Twin Falls," Rogers said. "And consumer confidence remains high."

Dallas-based Tuesday Morning Corp., a national discount retailer of upscale home furnishings and gifts, in July said it was in negotiations to occupy a storefront in the Shops at Magic Valley Mall. A Tuesday Morning spokeswoman predicted a September opening and a staff of 30 to 40 new employees.

Rogers expects Jerome, Gooding and Twin Falls counties’ combined unemployment to remain around the 4.0 percent mark in 2004 "unless extraordinary events such as a major business closure or unforeseen events such as a terrorist attack weaken the job market."

Times-News Business Editor Virginia S. Hutchins can be reached at 735-3242 or [email protected].

Help wanted

In the second quarter, Magic Valley businesses turned up the heat in their search for workers.
Local employers in April through June placed 9 percent more newspaper ads looking for workers than they did a year earlier, matching the growth rate of the first three months of 2004. That suggests plentiful options for job seekers.
Employment ads in The Times-News’ classified advertising section totaled 5,443 in the second quarter, compared with 5,013 a year earlier.
The newspaper’s classified and online manager, Deby Johnson, cited truck driving and general-labor construction positions as the most prevalent in help-wanted ads.
"The privately owned yard-care businesses are doing well this year with the increase in new construction and seeking additional help with sprinkler system installation and general landscaping. … All in all, the Magic Valley employers have job opportunities in all sectors," she said in early July, while reporting June’s 18 percent ad increase.
The improvements are particularly welcome after the past year’s decline. Full-year 2003’s employment ads totaled 3 percent fewer than the ads placed in 2002.