WWT – FALL 2015 Newsletter
News from the Port:
Welcome to the year-end addition of the Walla Walla Trends E-Newsletter.
The Walla Walla Valley had many positive developments in 2015.
Passenger boardings at the Walla Walla Regional Airport for 2015 are
projected to exceed 40,000. This will be a new record for the Airport. As a result, Alaska Airlines recently
announced they would be adding a third flight in March 2016.
Walla Walla’s unemployment rates remain one of the lowest of the 39 counties in the State of
Washington. In October, Walla Walla County unemployment rate was 4.4%. The statewide rate was
5.2%.
The Port has recruited a software development company, Ingeniux to downtown Walla Walla. They will
start up operations in early 2016 with 5 to 10 employees. We are cautiously optimistic this could be the
start of a software cluster in Walla Walla.
Progress is being made in the four-laning of U.S. Highway 12 between Walla Walla and the Tri-Cities.
Phase 7 (Lowden/Touchet Segment) is now fully funded at $126 million.
As 2015 comes to a close Walla Walla has a lot to be thankful for. Together we are making a difference.
Port Commissioners
Mike Fredrickson, Ron Dunning, Peter Swant
Indicator News:
Walla Walla and Columbia Counties Now an MSA
In 2013, Walla Walla County and Columbia Counties were combined to form the
379th largest Metropolitan Statistical Area (MSA).Currently, there are only two
smaller MSA’s in the U.S.: the Lewiston-Clarkston, ID-WA MSA, and the Carson City,
NV MSA. The new MSA designation allows for annual statistics from the U.S. Census
Bureau that were previously available every three years in Walla Walla County, and every five-years in
Columbia County. According to the U.S. Census, MSA’s consist “of one or more counties and includes the
counties containing the core urban area, as well as any adjacent counties that have a high degree of
social and economic integration”.
What Does the New MSA Designation Mean?
Critical indicators in many categories will now receive annual updates. These annual statistics now
better allow for direct comparisons to other MSA’s. For example, Per Capita Personal Income (PCPI) in
the Walla Walla MSA is ranked 203rdout of all MSA’s in the U.S. at $37,674, which is also fourth highest
in the state. Yet, the Walla Walla MSA is the 397th largest MSA. So, we know the Walla Walla MSA is
doing well in this statistic both nationally and compared to other MSA’s in the state.
Along with better measurements and annual updates, opportunities now exist that didn’t previously.
One example is now qualifying for Community Development Block Grants are now possible. Additionally,
the new MSA designation allows for completely new indicators available on the Walla Walla Trends site,
such as the newly added Metro GDP and GDP per Capita indicator.
More information on Metropolitan Statistical Areas can be found here.
Indicators in Action:
Civilian Labor Force and Participation
Rate Drops for Fourth Consecutive
Year
The Total Civilian Labor Force and the Labor
Force Participation Rate are crucial indicators to
understanding economic development in an
area. According to Asja Suljic, Regional Labor
Economist for the Washington State
Employment Security Department, “Such data
helps identify insight in the labor market. If
there is a large concentration of workers in any
given area, it gives an opportunity to businesses
to expand into the area or within the area and is
a predictor of economic expansion with job
growth, better wages, and more demand for
services.“
The U.S. Bureau of Labor Statistics (BLS) defines
the civilian labor force as “All persons in the
civilian non-institutional population classified as
either employed or unemployed.” The noninstitutional population excludes people in
penal institutions, mental institutions, those in
homes for the elderly, and people who are
serving on active duty in the U.S. Armed Forces.
To better understand what this indicator is
actually measuring, the components of the
civilian labor force and the participation rate is
a little easier to digest when broken down into
smaller parts. The civilian labor force includes
all civilians older than 16 who are either
employed or unemployed but seeking work.
This figure is then divided by the total number
of persons ages 16 and older to determine the
civilian labor force rate.
There are many aspects that can affect the
civilian labor force participation rate. For
example, beginning in the mid 1960’s there was
a large increase in the number of women
entering the labor force. More recently, people
who are working to an older age and pushing
back retirement or an increase in young people
attending college who aren’t planning on
working while in school also affect the civilian
labor force participation rate.
Examining the total civilian labor force graph,
we see that 2014 represents the fourth year in a
row with a
decreasing
number of
people in the
civilian labor
force; these
followed
four-years of
consecutive
growth
(2007-2010).
During 2014,
Walla Walla
County’s
total civilian
labor force stood at 28,268, which is the lowest
total number in the county since 2001 when it
was 27,330. During the same year, the civilian
labor force rate as a share of the population
older than 16 in Walla Walla County was the
lowest in the entire series at 61.1%.
Looking at the civilian labor force rate as a share
of the population older than 16, one can
observe that the county is keeping pace with
the state benchmark. In fact, the graph
represents a 20-year span and for exactly half of
the years available, the county rate has been
above the state rate. According to Tom O’Brien,
Director, Eastern Washington Partnership
Workforce Development Council, “the fact that
the County has generally kept pace with the
State can also be attributed to the
diversification of the economy. A broader array
of employment opportunities helps to keep the
participation rate higher.”
The largest gap in the county to the state
occurred in 1996 when the county civilian labor
force rate was 65.3% to the state’s 67.9% (a
difference of 2.6 percentage points). The largest
gap in the state to the county occurred in 2010
when the county
was at 70.3%
and the state
was at 66.0% (a
difference of 4.3
percentage
points). To
further explain
the civilian labor
force rate, each
percentage
offered
represents the
percentage of
the population
over age 16 were employed. For example, the
2014 civilian labor force participation rate of
61.1% means that 61.1% of the population
older than 16 was employed or looking for
work.
O’Brien believes Walla Walla County and other
rural areas “tend to lag more populated areas
by 2-3 years both in suffering the initial impacts
of a recession and then experiencing growth
during the recovery. Walla Walla County
benefits from having a more diversified
economy than many other rural areas which
helps to lessen the impact of a recession.” This
could help explain why the civilian labor force
and the participation rate continued to increase
for years after the Great Recession, but began
to show decreases well after the economic
rebound began.
Asja Suljic agrees, stating that “Developing
urban areas, as well as a rural areas labor force
tend to lag behind that of the state and the
nation. When the state and the nation enter
downturn in economy, the Walla Walla areas
labor force tends to follow suit couple years
after the state, mainly because of it local based
industries and diversity”. Furthermore, O’Brien
asserts “during prolonged recessions, some
businesses make adaptations to their processes
that enable them to conduct their operations
2014 Total Domestic Violence
Offenses and Offenses Per 1,000
Residents In Walla Walla County Both
Second Highest in Last 15-Years
In the mainstream media, there has been a
recent focus on domestic violence. High profile
cases involving famous people are keeping this
subject front and center. In some sense, it
seems like consumers of news media know the
issues and have seen a few too many pictures
or heard one too many personal stories of the
negative after-effects of domestic violence. But
there is little doubt that the real number of
domestic violence incidents and its wake of
victims is well below the known incidents of
domestic violence. So, this ultimately leads us
to a nearly unanswerable question: What is the
real extent of domestic violence occurring in
our country, our cities, and even the
neighborhood block we live on?
The National Coalition Against Domestic
Violence (NCADV) provides some insight into
these questions. According to the NCADV,
approximately every 9 minutes a woman is
with fewer people than they had previously
employed” which in essence decreases the
number of available jobs and will directly affect
the civilian labor force participation rate.
Due to the estimated two- to three-year lag of
both the negative effects and the subsequent
recovery from a recession in rural areas makes
this an important indicator to keep close track
of in the next few years to see if the county
regains its pre-recession figures.
assaulted or beaten in the U.S., 33% of women
and 25% of men in the U.S. have been victims of
some form of physical violence by an intimate
partner, while 20% of women and 14% of men
in the U.S. have been the victims of severe
physical violence by an intimate partner. Often
we don’t realize men are victims of domestic
violence, but men and transgendered people
also face domestic violence at alarming rates.
Additionally, 15% of all violent crime in the U.S.
is committed by an intimate partner. Domestic
violence, intimate partner violence, and
domestic victimization are also connected to
higher rates of depression and suicides.
Nationally, there is a 24-Hour Census of
Domestic Violence Shelters and Services. In
2014, it took place on September 10. The idea is
much like the national one-day homeless count
where the actual count takes place in a week or
two window of time, but all of the questions
asked refer to one-day, or a point-in-time, to
get a picture of what things were like on that
particular day. The results for each U.S. state
are included in the national report and revealed
that on September 10, 2014 in Washington
State, there were a total of 1,930 people served
in DV shelters or were receiving DV services
(which includes both women and children), yet
there were 549 people who had unmet
requests for services (approximately 28.4% of
all requests were unmet).
Looking deeper into the Total Domestic
Violence Offenses Reported and Offenses per
1,000 Residents of Walla Walla County
indicator, one can observe that the total
number of reported domestic violence offenses
in 2014, 469, are the second highest in the
series (2005 = 478). Although this is troubling,
the previous
two-years
were the
lowest years
for reported
domestic
violence
offenses in
the series
(2012 = 258
and 2013 =
265). The
reported
domestic
violence
offense rate matches the highest and lowest
years in the series for total reported offenses.
(2005 and 2014 yielded the highest rate per
1,000 residents at 8.4 and 7.8 respectively,
while 2012 and 2013 produced the lowest rate
per 1,000 residents in the series at 4.4 and 4.5
respectively. The good news for Walla Walla
County is that every year in the series except for
2014, the rate of reported domestic violence
offenses per 1,000 residents has been
consistently below the state benchmark.
Perhaps from the outside, we may wonder why
people who are in abusive relationships don’t
just leave. According to Chalese Rabidue,
Domestic Violence Services Officer with the
Walla Walla Police Department, it is rarely that
simple. Rabidue says that “Domestic violence is
totally about power and control” and that the
ability to leave is often controlled by the
abuser. Some of the underlying factors making
it so hard for a victim to leave are the lack of
reliable transportation, a lack of financial
resources, and sometimes even a legitimate
fear or threat of more abuse and increased
violence as a result of trying to leave or telling
someone about their situation. Further reasons
are a fear or
threat of losing
custody of their
children, a lack
of job skills that
will provide a
living wage, and
perhaps a strict
adherence to
cultural or
religious beliefs.
Other noneconomic
reasons for
staying include
guilt, feeling responsible for the abuse, and
feeling hopeless, helpless, trapped, depressed,
and even suicidal.
Rabidue’s position as a DV advocate with the
Walla Walla PD was the first of its kind in
Washington State where a social worker was
hired to work in the department to deal with
domestic violence issues. After nearly two
decades in her role with the Walla Walla PD,
Rabidue has experienced more than enough
cases to see the problem in ways most people
do not. She believes part of the solution is to
trust what the victims are saying as truth
because threats associated with a victim leaving
an abuser can too often come tragically to
fruition. Threats need to be taken seriously, but
no one knows for sure which ones will be acted
upon and which ones will remain simply verbal
threats.
Rabidue also believes the solution requires
paying more attention to the abusers than we
have in the past. “Perhaps we focus too much
on the victims, when the true problem lies with
the abusers.” Rabidue says that she believes in
nearly all cases the perpetrator picks the victim.
She has seen a large number of people who
were in abusive relationships eventually leave
Share of Residents in Lowest Income
Bracket in Walla Walla County
Decreasing While Highest Income
Bracket is Increasing
Income distribution has been a popular topic
going into the 2016 election cycle. In this article
we assess the trend of income distribution of
Walla Walla County in comparison with that of
Washington State. Income distribution is a
measure of a particular household’s total
annual take home salary and wages in
comparison to that of all other households in
the given community. This is different than the
so called “wealth gap”, which is a statement on
disparity of total net worth. What informs the
pattern of income distribution in Walla Walla
County and what does it show about the nature
of the county’s economy and labor force?
The Income Distribution of all Households in
Walla Walla County indicator measures income
distribution amongst households in the Walla
Walla Metropolitan Statistical Area (MSA),
which is comprised of Walla Walla & Columbia
(although sometimes taking many years to do
so) to find themselves in normal loving
relationships. At the same time, she has seen
previous domestic violence perpetrators
continually getting new victims.
Currently, the Walla Walla PD is working in
tandem with the local YWCA to provide shelter
and services with an emphasis on domestic
violence victims. Continuing to measure and
understand the local domestic violence
statistical trends will help to create and
maintain effective resources within the
community to help these victims gain a foothold
on their own lives.
Counties combined, into four income brackets.
During 2014 in the Walla Walla MSA, 21.7% of
households made less than $25,000 a year,
27.4% made between $25,000 and $49,999,
34.6% made between $50,000 and $99,999 a
year, and 16.4% made over $100,000 a year.
This is markedly different than the income
distribution in the state of Washington during
2014, where 19.1% of people made less than
$25,000 a year, 21.9% made between $25,000
and $49,999, 31.8% made between $50,000 and
$99,999 a year, and 27.2% made over $100,000
a year.
While a trend toward a greater inequality has
been linked to changes in the labor market and
in household composition, the truth is that
causes of income distribution differ from region
to region. We can see this to some degree here:
49.1% of Walla Walla MSA households made
$49,999 a year or less, compared to 41% of the
state. Income disparity in rural regions is
influenced by many factors, including migrant
workers, lack of “white-collar” middle class
positions, and lack of outside economic
investment.
However, Walla Walla does not exhibit an
income inequality as pronounced as other rural
regions. The diversity of Walla Walla’s economy
compared to other regions makes the number
of those in the Walla Walla MSA who earn
$50,000 to $99,999 (34.6%) slighter larger than
the state (31.8%). According to Indicator 1.3.5,
Shares of Employment in the Top-Five
Employing Sectors, agriculture (including the
wine industry) only claims 13.9% of the work
force, and according to the Port of Walla Walla,
amongst the
top ten private
employers are
the Tyson
Fresh Meats,
Washington
State
Penitentiary,
the Providence
St. Mary
Medical
Center, Boise
Paper, the
school district,
and 3 higher
education institutions. This economic diversity
and the prevalence of manufacturing, health
care, and human service jobs provides higher
levels of middle earners in the Walla Walla MSA
compared to the state, which puts the MSA in a
unique position in terms of equity and
household buying power
Something should be said as well about the
difference in the number of top earners in
Walla Walla MSA compared to the state. While
27.2% of the state made over $100,000 a year,
only 16.1% of those in the Walla Walla MSA did.
The number of high salary jobs might be limited
in Walla Walla MSA given the region’s rural
character and smaller IT sector compared to the
state. While the manufacturing, health care,
and human service sectors generally provide
stable middle-income employment, they do not
boast as many top earning jobs as other sectors.
There are some general economic implications
informed by
the level of
income
inequality in a
community.
Some
economists
argue that
some disparity
in income is
necessary to
incentivize
growth while
others argue
that increased
equity gives purchasing power to a greater
number of people. The correct answer may
indeed be a mixture of both. The reality for
Walla Walla is that the region boasts highly
equitable income distribution compared to the
state, a testament to the unique amount of
economic diversity for a rural region while
highlighting potential areas for growth.
STEM Degrees Granted in Walla
Walla County Increase for 5th
Consecutive Year
Education in a STEM (science, technology,
engineering, and math) and health care is vital
to a robust and competitive economy. STEM
occupations drive the modern economy and
encompass a wide range of both middle skills
and specialized jobs. All the STEM subjects have
increased the competitiveness and vitality of
the health care industry, and jobs in that
industry are often counted in STEM
employment totals. The opportunity to pursue a
STEM career
through
education has
become an
important
measure for
higher education
and economic
vitality in a
region. This
indicator,
Science,
Technology, and
Health (STEM)
Degrees as
Shares of the Total College Degrees Granted in
Walla Walla County, measures the number
degrees in STEM and health care awarded at
the three institutions of higher education in
Walla Walla County- Walla Walla Community
College, Walla Walla University, and Whitman
University.
In Walla Walla County during the 2014-2015
school year, there were a total of 466 STEM
degrees granted, marking the highest number
of STEM degrees granted during a school year
for the entire series. This is an increase of 19.1%
since the 2003-2004 school year, when there
were 391, and a 12.3% increase from just the
previous year. In the 2013-2014 school year,
42.2% of the Bachelor’s degrees, 21% of
Associate’s degrees, and 3.8% of the Master’s
degrees awarded in Walla Walla County were in
STEM or health care.
Vital Signs: Washington shows that people with
STEM skills or degrees have a high occupational
demand, especially when compared to people
who have not acquired STEM skills or degrees.
In fact, Vital Signs found that in Washington
State, there are 2.1 STEM jobs open for every 1
unemployed
person and
3.7
unemployed
people for
every 1 nonSTEM job.
Additionally,
half of all
STEM jobs do
not require a
4 year degree
and pay on
average
$53,000, ten
times higher than non-STEM jobs with similar
education requirements. STEM jobs that do not
require a 4 year degree are found in a wide
range of fields including construction,
agriculture, automotive, and aviation
technologies, nursing and dental hygiene, IT
and computer systems.
Given the nature of the Walla Walla economy,
the prevalence of agriculture including wineries,
the three hospitals, and the budding wind
energy sector, STEM careers at the technical
and associate’s level represent a large area of
growth in the Walla Walla MSA. Dr. Marleen
Ramsey, the Vice President of Instruction at
Walla Walla Community College, works at the
center of the effort to provide talent for the
STEM careers that do not require 4 year
degrees. She notes that it is the responsibility of
local community colleges to respond to local
needs and provide relevant technical programs
for the nearly 100,000 STEM jobs added in
Washington State.
Walla Walla Community College (WWCC) has
several flagship programs in STEM that are
designed to meet the specific needs of the
greater Walla Walla area. Whitman College has
just introduced a major in computer science.
The integration of STEM knowledge into the
heritage industries, particularly agriculture, and
the growth of new industries has informed the
technical level education at WWCC. The college
has programs designed to meet what Dr.
Ramsey identified as the four largest STEM
sectors in the region: precision machinery in
relation to farming, renewable energy, health
care and training in health care technologies,
and of course the region’s famous wine
industry. Providing local talent for these sectors
is crucial for the economy diversity and the
pronounced income equity in the Walla Walla
region.
According to Dr. Ramsey, there is still much to
work to be done. She believes the next steps in
fostering STEM education in Walla Walla are to
create a good K-12 STEM plan to capture
interest early, particularly that of female
students, while continuing to grow partnerships
between the three higher education institutions
in Walla Walla and the public school system.
While Walla Walla MSA is one of the nation’s
smallest, the region does boast has 3 higher
education institutions and is well equipped to
meet the demands in STEM sectors.