Thanks to Auto Zone, Tri-Cities could shatter jobs record

The Tri-City economy is about to post its best jobs month ever.

Unemployment fell to 4.8 percent in June in the Mid-Columbia, compared to 5.2 percent in May and 6.2 percent a year ago, according to figures released Tuesday by the Washington Employment Security Department.

The rate is tantalizingly close to the all-time record, 4.7 percent, set exactly 10 years ago, on the eve of the Great Recession.

“If we see anything below 4.7 percent next month and in August, those are going to be new records for us,” said Ajsa Suljic, regional labor economist for the state.

There is good reason to think July will be a banner month. Memphis, Tenn.-based Auto Zone Inc. began operations of its much-anticipated distribution warehouse in Pasco this month.

The Fortune 500 company invested more than $50 million in the project and hired about 200 people to service its auto parts retail network.

Suljic credits population growth for propelling the economy forward in the decade since the current record was set. The Tri-Cities is now more than four years into a continuous growth streak and saw its population grow nearly 10 percent between 2010 and 2015.

Newcomers drive jobs in retail and hospitality, health and education and construction, Suljic said.

The Mid-Columbia follows a predictable pattern over the course of a year. Unemployment peaks in the slow winter months and dips during the busy summer construction and agricultural months.

Still, if July sticks to historical patterns, the local unemployment rate will not only break an old record it will drop to half of what it was at the start of 2015, when 9.2 percent of workers were looking for jobs.

That kind of news is worth celebrating, said Carl Adrian, president and CEO of the Tri-City Development Council, the region’s primary economic development agency.

“The economy has been good in the community and that is reflected by the unemployment rate,” he said. “Halving it is great.”

The 4.8 percent unemployment rate signifies a booming economy but Adrian notes the Tri-Cities isn’t unique.

The U.S. unemployment rate fell to 4.4 percent in June, the U.S. Department of Labor reported last week.

Washington’s unemployment rate is 4.5 percent and Seattle’s is 3.8 percent.

Adrian said the Tri-Cities may remain above average for unemployment because of population growth. The economy can’t absorb people as fast as they move in, he said.

Construction added the most new jobs in June, not surprising considering Tri-City building departments have authorized nearly $413 million in new residential and commercial construction this year, according to statistics maintained by the Home Builders Association of the Tri-Cities.

Compared to a year ago, there were 1,100 new construction-related positions in June, pushing the total to 8,700, according to the employment department.

Other fast-growing sectors include education and health services, which grew by 500 jobs to 15,600, and manufacturing, which grew by 200 jobs to 16,400 in June.

This story was originally published July 25, 2017 at 5:40 PM with the headline "Thanks to Auto Zone, Tri-Cities could shatter jobs record."