Washington State Employment Security Department: Year in review: Benton and Franklin regional economy with robust growth in 2019

The national and state economies expanded at its long-term growth rates, but economic growth momentum is showing signs of slowing as the economic expansion matures. The Benton and Franklin regional economy proved robust in 2019, defying any downturn fears by continuing upward growth in almost all aspects economic activities.

Regional economic activity continued to outpace most of other areas in the state, with employment rising 3.6% (over 4,200 new nonfarm jobs) in December of 2019, compared to 2.2% statewide. Regional nonfarm employment reached a new peak with over 119,900 jobs.

In the past 5 years, since December 2014, the Benton-Franklin area grew on average 3.1% a year, which translates into over 15,700 new jobs.

Economic activities in both goods-producing and service-providing sectors added jobs to accommodate demand coming from both local residents and local businesses. Leading industries in job growth are professional and business services, with 1,700 added jobs, of which 1,400 were added by administrative and support services. Construction, private education and healthcare services each added 700 jobs. Leisure and hospitality added 400 jobs, of which 300 were in food services. Other industries, including financial services and local government, added jobs in 2019 as the local economy paved its expanding path forward due to population growth and service demand.

As of 2018, the Benton-Franklin region population topped 296,200, according to U.S. Census estimates. Average annual growth rate for the past eight years has been around 2.%, with 2.2% in Franklin County and 1.7% in Benton County, compared to the state’s average annual growth rate of 1.4% and nation’s 0.7%.

From 2010-18 the area gained 42,800 residents, almost equally divided into people moving into the area (net migration) and family expansion (net natural changes). To put it in a perspective as an economic driver and future supply of labor force, Benton and Franklin region had over 35,390 new births, that is an average of 4,400 babies a year for the past eight years. Families and households are expanding and increase demand for services and products, which, in return, drives local economic growth.

Looking at the population forecasts, area will continue to be one of the fastest-growing regions in the state. The Benton-Franklin population is forecasted to grow at a pace of around 2% a year for next 10 years. By 2028, region is expected to be home to about 350,000 people.

A very positive impact of well-distributed population growth is labor force growth, which increased by 4.9%, compared with the sate increase of 3.5%. This translates into over 6,000 new entrants into the labor force. The regional labor force is gaining confidence in the local economy and their ability to gain and keep the jobs. Looking at the labor supply statistics, a notable factor for the future workforce supply is that 29.7% of region’s population is under 18, compared with the state’s 22.2% and the nation’s 22.6%.

Demand for public services, educational opportunities, healthcare services and other community activities for will likely increase in the area, but at the slower pace, while services and activities for an aging population will be increasing at more moderate pace.

The Tri-Cities have good cooperation among its many community agencies and organizations for diversification of the local economy and community assets. According to Washington state nonfarm projections, the Tri-Cities are expected to be the fastest growing area in the state through 2027, however, many of these projections are subject to change as new information on economic activities comes along.

We are sure to see known and unknown obstacles that will come forward and challenge resiliency of the local economic strength. Most recent trends show that the local economic structure is much more diversified, which will help offset any large event impacts on the greater regional economy and community wellbeing.

This story was originally published April 23, 2020 at 5:01 PM with the headline "Washington State Employment Security Department: Year in review: Benton and Franklin regional economy with robust growth in 2019."