WA Coast Economist - Employment

Prime Age Employment Gap

The prime-age employment gap measures the difference in labor force participation between counties and a benchmark (either the state or national average) for adults ages 25 to 54. It is considered the core of the workforce. These are the years when individuals are most likely to be working, building careers, and supporting families. A positive gap means a county has higher participation among prime-age workers than the benchmark. A negative gap may signal challenges such as lack of job opportunities, barriers to employment like childcare or transportation, or economic disconnection.

The size and direction of the prime-age employment gap provide insight into a region’s economic vitality and workforce resilience. Counties with persistently low prime-age participation may struggle to attract and retain employers, support local services and tax bases, or sustain long-term economic growth. By tracking this gap over time and across geographies, we can identify where workforce engagement is strong and where targeted investments or policy solutions may be needed to re-engage working-age adults and strengthen local economies.

Employment by Industry

Employment is a critical factor in economic development and resilience. It serves as a key driver of economic growth, productivity, and consumer spending. It also plays a crucial role in reducing poverty and inequality by providing individuals with a source of income and opportunities for upward mobility. Policymakers can leverage employment data to identify areas of the economy that require support and develop targeted policies to promote job creation and economic growth. Prioritizing employment as a fundamental indicator of economic development and resilience, regions can build more sustainable and inclusive economies for the future.

Location Quotient

The location quotient (LQ) helps identify exporting and importing industries based on national or state averages. An exporting industry (LQ > 1.25) is one where the industry not only meets the local demand for its products, but also produces enough so it can sell outside of the region. An importing industry (LQ < 0.75) is one where local production levels are insufficient to meet local demand. In between the two, is when an industry is meeting demand. The presence of an exporting industry often indicates a local competitive advantage. Additionally, the LQ can increase or decrease over time. Combining these two ideas helps us identify if an industry is a strength, weakness, opportunity, or is threatened.

Strength: LQ is greater than 1 and has a positive growth rate, it is considered a regional strength. Industries is this category have a higher than average concentration, and that concentration is growing relative to the average.
Weakness: LQ is less than 1 and has a negative growth rate. The region has a lower concentration of jobs in these industries than average, and it is declining.
Opportunity: LQ is less than 1, but has a positive growth rate. The region has a lower concentration of jobs in these industries, but it is expanding.
Threatened: LQ is greater than 1, but has a negative growth rate. The region has a higher concentration of jobs in these industries, but it is declining.

Unemployment

Unemployment is a measure of the rate of joblessness in the labor force. It is a lagging indicator that generally increases or decreases with the rest of the economy. Unemployment is typically uneven spatially and among demographic groups. There can be significant seasonal variation in unemployment. It is important to understand how the unemployment rate has changed over time, whether there are periods of the year where the rate is lower or higher, and if the seasonality of unemployment has changed over time. For the most recent unemployment rate, visit the BLS website directly.

Questions to ask of the data…

Are there areas with higher unemployment? How does unemployment vary by age group?
Is there seasonal variation in unemployment? If so, why?
Which local industry has shown the greatest growth? How has this growth compared to other regions? What do you think has caused this growth?
Have there been any surprises, such as a sector that has grown or declined faster than anticipated? Why do you think this is so?
Does this information support popular perceptions?

Looking at a variety of indicators is useful. For example, after identifying a "high-growth" industry, you might want to also look at wages in that industry--the jobs may not be very high paying, and the growth may not be as great of a local boon as it appeared.

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