1

State of Regional EconomyBenton-Franklin Region

City of Prosser

Prosser Economic Development AssociationAjša Suljić-Regional Labor EconomistEmployment Security DepartmentFebruary 7th , 2013

2

U.S. and state unemployment rates in downward trend,

while local rate is trending up

3%

5%

7%

9%

11%D

ec-0

7

Jun-

08

Dec

-08

Jun-

09

Dec

-09

Jun-

10

Dec

-10

Jun-

11

Dec

-11

Jun-

12

Dec

-12

Une

mpl

oym

ent r

ate

Source: WA Employment Security Department/LMEA; U.S. Bureau of Labor Statistic/LAUS-Seasonally Adjusted UI Rate

Kennewick-Richland-Pasco MSA Washington U.S.

Recession Dec'07-Jun'09

Prosser City Avg Annual UI Rate2009----------------------------7.2%2010----------------------------8.0%2011----------------------------8.5%Source: U.S. Census ACS estimates

3

Local economic growth stalls in 2012, while U.S. and state are in slow recovery

90

95

100

105

110

115

Dec

-07

Jun-

08

Dec

-08

Jun-

09

Dec

-09

Jun-

10

Dec

-10

Jun-

11

Dec

-11

Jun-

12

Dec

-12

Non

farm

em

ploy

men

t

Source: WA Employment Security Department/LMEA; U.S. Bureau of Labor Statistic/CES

Kennewick-Pasco-Richland MSA vs Washington & U.S. Employment (Index, Dec 2007 = 100)

Kennewick-Pasco-Richland MSAWA U.S.

Recession Dec'07-Jun'09

4

Declining employment

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1.25

1.30

2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: WA Employment Security Dep, U.S. Census LED OnTheMap 2012

Employment

Prosser City

Benton-Franklin Counties

Washington State

5

Service based economy

Public Administration

22%

Manufacturing14%

Health Care and Social Assistance

14%

Educational Services

13%

Agriculture10%

Retail Trade9%

Accommodation & Food Services

7%

All Other Industries

11%

Industry Share of Total Employment

Average Annual Wage 2011$ 41,733

OTY 1.8%5Y AAGrowth 2.3%

6

Agriculture added the most jobs in the Region

6,500

8,000

9,500

11,000

12,500

14,000

80,000

88,000

96,000

104,000

112,000

120,000

Tota

l cov

ered

em

ploy

men

t

Farm

em

ploy

men

t

Source: WA Employment Security Department/QCEW/CES/Ag Estimates 2012

Total covered employment

Farm employment

Kennewick-Pasco-Richland MSA

7

Decreasing number of workers with bachelor’s degree or higher

0% 5% 10% 15% 20% 25% 30%

Less than high school

High school or equivalent, no college

Some college or Associate degree

Bachelor's degree or advanced degree

Educational attainment not available (workers aged 29 or younger)

Jobs by Workers Educational Attainment

20092010

8

Prosser worker demographics

Jobs by Worker Age 2002 2010 Change Age 29 or younger 23.6% 21.8% -1.8%Age 30 to 54 62.0% 57.4% -4.6%Age 55 or older 14.4% 20.8% 6.4%

Jobs by Earnings 2002 2010 Change $1,250 per month or less 32.5% 27.5% -5.0%$1,251 to $3,333 per month 45.8% 36.6% -9.2%More than $3,333 per month 21.7% 35.8% 14.1%

Jobs by Worker Sex 2009 2010 Change Male 45.1% 44.2% -0.9%Female 54.9% 55.8% 0.9%

9

Growth similar to the Region

80,000

110,000

140,000

170,000

200,000

230,000

260,000

290,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

Source: WA Office of Financial Management 2012 Estimates , U.S Census Bureau 2011 Estimates

Population Trend

Prosser City Benton-Franklin Region

10

One of the youngest cities in Benton County

2006-201113%

2011-20167.6%

2016-2021

6.6%

32.8

0

5

10

15

20

25

30

35

40

45

Source: WA Employment Security Department, U.S. Census-ACS estimates 2011

Median Age

11

Educational attainment below national, state and county level

80.9%

0%

20%

40%

60%

80%

100%

120%

Source: WA Employment Security Department, U.S. Census ACS estimates 2011

Educational Attainment:Percent high school graduate or higher

12

Lowest household income in the county

$47,357

$-

$15,000

$30,000

$45,000

$60,000

$75,000

$90,000

Source: WA State Employment Security Department, U.S. Census- ACS estimates 2011

Median Household Income

13

How long will it take to recover that is the question?

0.85

0.90

0.95

1.00

1.05

1.10

1 13 25 37 49 61

Empl

oym

ent

Source: Washington State LMEA, BLS-CES estimates

Kennewick-Pasco-Richland MSA Employment Index (1.00= Peak)

1994-19972004-20062011-2012

Months

14

Outlook

▶ Employment to stabilize in 2013

▶ Population growth will have an effect on local economic growth

▶ Industries that will be leading growth▶ Healthcare▶ Educational services▶ Food manufacturing

15

Thank YouAjša Suljić

Regional Labor EconomistASuljic@esd.wa.gov

509-734-5928esd.wa.gov/employmentdata

16

Private and public sectors growth similar through Q3 ‘11, while 2012 is different

16,000

17,000

18,000

19,000

75,000

80,000

85,000

90,000 De

c-07

Jun-

08

Dec-

08

Jun-

09

Dec-

09

Jun-

10

Dec-

10

Jun-

11

Dec-

11

Jun-

12

Dec-

12

Publ

ic se

ctor

em

ploy

men

t

Priv

ate

sect

or e

mpl

oym

ent

Source: WA Employment Security Department/LMEA; U.S. Bureau of Labor Statistic/CES-SA Employment

Kennewick-Pasco-Richland MSA

Total PrivateTotal Government

17

Industries related to discretionary spending have stabilized

15,000

15,750

16,500

17,250

18,000

8,000

8,500

9,000

9,500

10,000 De

c-07

Jun-

08

Dec-0

8

Jun-

09

Dec-0

9

Jun-

10

Dec-1

0

Jun-

11

Dec-1

1

Jun-

12

Dec-1

2

Trad

e\Tr

ansp

orta

tion\U

tiliti

es

Leis

ure\

Hosp

italit

y

Source: WA Employment Security Department/LMEA; U.S. Bureau of Labor Statistic/CES-SA Employment

Kennewick-Pasco-Richland MSA Leisure\HospitalityTrade\Transportation\Utilities

18

Construction rebounding from 2011 decline, while manufacturing stable

5,000

6,000

7,000

8,000

5,000

6,000

7,000

8,000 De

c-07

Jun-

08

Dec-

08

Jun-

09

Dec-

09

Jun-

10

Dec-

10

Jun-

11

Dec-

11

Jun-

12

Dec-

12

Man

ufac

turin

g

Cons

truc

tion

Source: WA Employment Security Department/LMEA; U.S. Bureau of Labor Statistic/CES- SA Employment

Kennewick-Pasco-Richland MSA

ConstructionManufacturing

Recession Dec '07-Jun '09

19

9,000

10,000

11,000

12,000

15,000

20,000

25,000

30,000 De

c-07

Jun-

08

Dec-

08

Jun-

09

Dec-

09

Jun-

10

Dec-

10

Jun-

11

Dec-

11

Jun-

12

Dec-

12

Priv

ate

Educ

ation

\Hea

lthca

re

Prof

essio

nal\

Busin

ess

Source: WA Employment Security Department/LMEA; U.S. Bureau of Labor Statistic/CES-SA Employment

Kennewick-Pasco-Richland MSA

Professional\Business ServicesPrivate Education\Healthcare

Education\healthcare stable and growing, while professional\business declining

Beginning of Hanford Layoffs