LOCAL STRATEGIC PLANJuly 1, 2007 June 30, 2009

PACIFIC MOUNTAINWORKFORCE DEVELOPMENT COUNCIL

1570 Irving Street SWP.O. Box 9046

Olympia, WA 98507-9046(360) 570-4231

Fax: (360) 570-6444

PACIFIC MOUNTAIN WORKFORCE DEVELOPMENT COUNCILLOCAL STRATEGIC PLAN

TABLE OF CONTENTS

INTRODUCTION AND EXECUTIVE SUMMARY..........................................................4

THE COUNTIES IN THE PACIFIC MOUNTAIN WORKFORCE DEVELOPMENT AREA..................................................................8

TOMORROW’S ECONOMY AND CHANGING WORKFORCE ................................10

IN-MIGRATION AND OUT-MIGRATION.........................................................13

SUMMARY OF TOMORROW’S ECONOMY.........................................................16

EMPLOYER REPORTED SKILL GAPS................................................................17

JOB AVAILABILITY AND VACANCIES...............................................................24

REQUIRED FUTURE MARKET DRIVEN SKILLS ...............................................28

FAST GROWING OCCUPATIONS.......................................................................33

SLOW GROWING OCCUPATIONS......................................................................41

THE CHANGING AND FUTURE DEMOGRAPHICS OF THE FIVE COUNTIES.......43

GRAYS HARBOR COUNTY..................................................................................43

PACIFIC COUNTY.................................................................................................65

LEWIS COUNTY.....................................................................................................81

MASON COUNTY..................................................................................................98

THURSTON COUNTY.........................................................................................114

THE PACIFIC MOUNTAIN WORKFORCE DEVELOPMENT SYSTEM...................140

THE CURRENT AND FUTURE WORKFORCE INCLUDING JOB SEEKERS..............................................................................140

YOUTH.................................................................................................................141

YOUTH EMPLOYMENT GRAPHS...............................................................143

YOUTH DROP OUT RATES........................................................................144

YOUTH ETHNIC COMPOSITION.................................................................145

ADULTS IN TRANSITION...................................................................................145

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INCUMBENT WORKERS....................................................................................146

EHNICITY/CULLTURAL DIVERSITY..................................................................147

ECONOMICALLY DISADVANTAGED................................................................148

MATURE WORKERS..........................................................................................149

INDIVIDUALS WITH DISABILITIES....................................................................150

WOMEN...............................................................................................................151

INDIVIDUALS WITH DISABILITIES....................................................................150

YOUTH AND ADULT OFFENDERS....................................................................152

THE WORKFORCE DEVELOPMENT SYSTEM TODAY.........................................155

A. COMMUNITY COLLEGES..............................................................................155

B. SECONDARY VOCATIONAL EDUCATION...................................................156

C. PRIVATE CAREER AND VOCATIONAL SCHOOLS....................................156

D. EMPLOYER SPONSORED TRAINING..............................................................157

E. YOUTH, ADULT AND DISLOCATED WORKER PROGRAMS...........................157

F. FEDERAL WAGNER-PEYSER ACT..................................................................157

G. APPRENTICESHIP..........................................................................................158

H. ONE-STOP......................................................................................................158

I. VOCATIONAL REHABILITATION......................................................................159

J. DEPARTMENT OF SERVICES TO THE BLIND..................................................160

K. PRIVATE AND NON-PROFIT JOB TRAINING...................................................159

L. AMERICORPS..................................................................................................160

M. ENTREPRENEURSHIP AND SELF-EMPLOYMENT..........................................160

N. WORKSOURCE/WORKFIRST INTEGRATION..................................................161

PERFORMANCE ACCOUNTABILITY......................................................................161

A. STATE LEVEL PERFORMANCE AND REPORTS.......................................162

B. FEDERAL PERFORMANCE MEASURES....................................................162

AGENDA FOR ACTION............................................................................................164

A. BUSINESS SUMMIT.....................................................................................165

1. KEY FINDINGS..................................................................................166

2. NEXT STEPS.....................................................................................167

B. ECONOMIC DEVELOPMENT SUMMIT.......................................................167

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1. KEY FINDINGS..................................................................................167

2. NEXT STEPS.....................................................................................168

C. EDUCATION SUMMIT...................................................................................168

1. KEY FINDINGS.................................................................................168

3. NEXT STEPS.....................................................................................169

D. WORK SESSION RESULTS..........................................................................169

AGENDA FOR ACTION STRATEGIES AND GOALS.............................................170

AGENDA FOR ACTION INITIATIVES, ACTION ITEMS AND OBJECTIVES..........171

WDA POLICY STRATEGIES....................................................................................172

WDC PROGRAMS....................................................................................................173

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INTRODUCTION

On August 7, 1998, the Workforce Investment Act was signed into law. Six years in the making, this law represents a major overhaul of the nation's workforce development system.

Implemented in Washington State on July 1, 2000, the Act focuses on five key principles:

1. Integrate services in a one-stop environment that gives all job seekers a "no wrong door approach" to workforce services.

2. Empower job seekers to choose training through the use of vouchers (Individual Training Accounts) and a "consumer report" containing performance information on training providers.

3. Provide universal access to the workforce development system, ensuring inclusion of all customers.

4. Strengthen accountability of staff, programs and resources through strict performance standards utilizing a continuous quality improvement model.

5. Ensure a strong leadership role for business through business-led boards.

Pacific Mountain Workforce Development Council (PMWDC) has embraced these five principles, embarking on a strategic journey of building a world-class, competitive workforce. Since the inception of WIA, the PMWDC has stipulated that the needs of business must drive the decisions that frame public policy. As a result, we are actively building a workforce system in partnership with the employers in our workforce development area.

To this end, the goals and objectives articulated within this plan seek to strengthen the role of business, integrate the myriad of workforce programs into a cohesive, responsive system to meet the needs of matching employers with potential employees and develop dedicated, skilled workforce professionals serving employers and job seekers needs.

EXECUTIVE SUMMARY

The Pacific Mountain Workforce Development Council has long been a supporter of the goals established by the Workforce Training and Education Coordinating Board (WTECB). This plan will again support and work toward achieving the goals and strategies outlined within High Skills, High Wages 2006: Washington’s Strategic Plan for Workforce Development. In addition, PMWDC parallels the State’s strategic focus to “anticipate and plan for economic demographic changes” rather than just react to them as they occur. Our Council is committed to enhancing the economic infrastructure and employment opportunities of the Pacific Mountain Region as well as that of the State of Washington.

The PMWDC has embraced the strategies outlined in the Governor’s plan, The Next Washington, Growing Jobs and Income in a Global Economy: 2007 – 2017. In particular, the Pacific Mountain Workforce Development Council has changed its emphasis from a

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county-by- county approach to workforce training and business services to a regional approach. In designing and writing our recently submitted grant proposal for the Workforce Innovation for Regional Economic Development (Wired), we chose strategies and outcomes that would lead to regional talent development and economic growth. PMWDC is partnering with local Economic Development Councils, education and industry to create regional coalitions. For example, we are committed to the creation and support of the South Sound Manufacturing Alliance as an effective regional economic entity. The Alliance is mandated to address not only the competitiveness of manufacturing in the South Sound region; but also the workforce requirements (both skills and availability), and the critical infrastructure necessary to retain a vibrant and vital economy within the Pacific Mountain Workforce Area.

In addition, we have modified the award winning Business-to-Business Program to deliver and support business activities on a regional basis. Locally, our public partners in workforce, education, economic development, business and other interested parties are also recognizing that in order to compete in the global marketplace, they must acknowledge that the five counties are economically interdependent and work within the framework of a regional economy. This change in thinking allows the existing partnerships between all training, EDC, business, Workforce and community partners to become stronger. It also enables them to find solutions to the region’s business and employment needs more effectively.

The South Sound Manufacturer’s Alliance in its January 2007 white paper states: This is a time of challenge for manufacturing firms in the South Puget Sound region. It has been well documented that manufacturing in the United States has been transformed in many instances from basic component manufacturing, to the assembly of products produced elsewhere and shipped to local points of assemblage. Additional global pressures continue to build and impact manufacturing – fuel prices continue and will continue to rise, thus increasing production costs. New labor markets are opening up as countries emerge into full participation in the global economy. Locally, pressure continues to build on such firms as population increase and residential needs encroach upon areas historically reserved and recognized as manufacturing zones. Local infrastructure in many instances is hard pressed to deliver service levels that are adequate for the timely delivery of goods and services.

The region, comprised of the five-counties of Thurston, Lewis, Mason, Grays Harbor and Pacific, has an economic interconnectivity that creates a regional interdependence. For example, forest and wood products comprise a large percentage of manufacturing in each county. Marine manufacturing also forms and economic base that presents significant trends in employment and workforce skill requirements. This influence is most prevalent in Grays Harbor and Mason counties. The region’s total manufacturing base breaks out into the following percentages:

Miscellaneous Manufacturing 17% Food & Kindred Products 14% Industrial and Commercial Machinery 10% Fabricated Metal Products 9% Primary Metal Industries 5% Apparel and Other Finished Goods 5% Transportation Equipment 4% Leather and Leather Products 3%

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Furniture and Fixtures 3% Paper and Allied Products 1%

(The remaining 29% are manufacturing operations fall within the following categories: tobacco products, textile mill operators, lumber and wood products, rubber and miscellaneous products, electronic and electrical equipment, and measuring/analyzing devices. The source of the above information on manufacturing in the Pacific Mountain Workforce Area is the South Sound Manufacturers Alliance in a paper authored by the Thurston County Economic Development Council (EDC).

The PMWDC has historically been recognized as a leader and innovator within the State of Washington and on a national level. We have been honored as one of seven Demand Driven Incubator sites within the United States. Pacific Mountain is pleased to share this honor with the WTECB, another recipient of the award. Washington is one of only two states in the nation to be recognized in this way.

In order to promote the necessary leadership and innovation required to create a resilient, and innovative regional economy, Pacific Mountain Workforce Development Council is fostering partnerships at the WorkSource level. These partnerships are transforming the Pacific Mountain Workforce System in an effort to provide more employment opportunities for our job seekers and economic vitality within our region.

Pacific Mountain has recently implemented one of the Strategies (16.6) of the Workforce Training Board. In order to serve the needs of our customers more effectively, we are piloting the co-location of Labor and Industry and Vocational Rehabilitation Services at one of our WorkSource Centers. We are proud to be the first in the State of Washington to implement this strategy and establish a co-location of services. The planning and implementation of this strategy took nearly a year. PMWDC did not let this lengthy process discourage us. Recognizing the advantages the co-location would provide our customers, we worked through the long process. As a result, we now have both Labor and Industry and Vocational Rehabilitation working side-by-side with our other partnering organizations at our Thurston WorkSource site.

In order to meet the combined challenges of a competitive economy, changing labor force, and make the best use of our region’s increasingly scarce natural resources; the workforce development system must continuously improve its performance. Our goal is to ensure that our approach to serving the needs of our customers continues to be demand-driven. It should, and will, remain our standard way of doing business. We recognize that by serving the needs of our business community and employers, we serve our job seekers more effectively, as well. We know that the only way to ensure High Skills, High Wages jobs are available to our dislocated workers and other job seekers is by providing the required coalitions necessary to match ongoing talent development with the present and future workforce needs of our region. Employment opportunities will be more plentiful if we help create an innovative and flexible regional economy.

In addition to this demand-driven philosophy, the Pacific Mountain Workforce Development Workforce Council has recently begun the process of becoming more proactive in our approach to dealing with regional and local events impacting employment and the economy.

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Historically, we have been reactive rather than proactive in dealing with layoffs, business closures and government reductions in force. While we continue to take a leadership role when such events occur, we are now in a better position to meet the needs of the affected workers. By using knowledge of the high-demand, high-wage employment opportunities in our communities, we can create ongoing talent development that will help all workers be prepared for downturns within any industry. Our partnerships with business, industry, financial, educational, and community leaders create a regional rather local economic base. This, in turn, provides a training infrastructure and demand-driven workforce that will be flexible, diverse and innovative enough to predict and accommodate the needs of both employers and employees as they change.

The Pacific Mountain Workforce Development Area is presently experiencing a profound shift in its economy. Our primary industries, based upon diminishing natural resources, are increasingly becoming a less viable source of economic stability for the five-county region. Global warming, more stringent industrial standards and regulations, and diminishing access, and high unemployment based upon mill, mine and fisheries closures have forced us to become increasingly innovative and regional in our economic development. While Thurston County has been somewhat insulated from this decline in the natural resource based economy by its abundance of gainful employment in the public sector, it too, has suffered unemployment increases after a series of “reduction in force” cutbacks. There has been a noticeable recovery in the last six months that should endure, as our economy continues to transform.

Despite the region’s diminishing natural resources, it is growing in human resources. An influx of talent and human assets is replacing the ever decreasing natural resources we have relied on for over thirty years to keep our economy stable. Unfortunately, according to the U.S. Census, the average wage per job in the United States was $46,224 in 2004. The average earnings per job in Thurston County in 2004 was $38,919. While the average earnings in Lewis County was $32,826. In Lewis County the average salary was only 84% of that of Thurston County and it was only 72% of that of the average wage throughout the United States. This disparity in wages shows a need for economic infrastructure to begin to produce employment opportunities throughout the Pacific Mountain Region that generate high skills, high wages opportunities for our workforce. This is especially the case in terms of minority and women workers.

Changing global demands for more sophisticated technology and different worker skills have stimulated a need for more talent development in the PMWDC region. This region has the necessary talent pool to mentor and develop the skilled workforce required, if we continue our strong partnerships with economic development organizations, education, industry, and the existing skilled workforce. We are committed to helping our workforce develop the talents and skills necessary to move beyond our existing skill gaps. The region, including its growing population of seniors, highly educated professionals, non-profit organizations, and an influx of technical and vocational academic programs; has created the perfect combination of human, economic and academic assets required to transform our region’s economy. Our human assets will create an economic infrastructure that is flexible, innovative and resilient enough to accommodate the principles outlined in High Skills, High Wages, 2006.

"The Washington economy is one of the fastest growing in the nation and this is a great record to break," said Gov. Chris Gregoire in April of 2007. While some counties such as Grays

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Harbor, Lewis and Pacific still lag behind; Thurston County is surpassing the state in positive economic indicators.

The Agenda for Action section of this plan will outline our goals, programs, initiatives, and present and future activities and show how they support the Workforce Training and Education Coordinating Board’s High Skills, High Wages 2006: Washington’s Strategic Plan.

The Counties in the Pacific Mountain Workforce Development Area

The Pacific Mountain Workforce Development Area (PMWDA) is a five-county area in Western Washington. The five-county area consists of Grays Harbor, Pacific, Lewis, Mason and Thurston counties. Comprised of nearly 7,000 square miles, the area extends from Pacific County's Long Beach and Grays Harbor's Taholah on the western borders to Lewis County's Packwood and Mount Rainier to the East and to Mason County's Belfair on its northern borders. These counties represent five local economies with unique labor market areas that are tied together by proximity, economics, workforces and markets into one regional economic development area. As communications and a number of economic sectors grow within these communities the counties are becoming increasingly interdependent upon each other for their economic vitality. Regional planning and a clear recognition by the Pacific Workforce Mountain Development Council that the counties are not segregated entities in terms of employment and economic growth is critical to the economic health of the region. With the exception of Thurston County, these local economies are natural resource based and primarily dependent on a highly cyclical and seasonal economy. Changes in the industry and technology make it necessary to train the workforce to successfully meet the needs of the changing economy.

For planning purposes, the Pacific Mountain Workforce Council has relied upon state, federal, and local projections regarding the demographics of the region including population, potential economic trends and future per capita and occupational earnings. These are only “best practices” predictions since no one can see accurately into the future. For this reason, those generating these figures vary in their predictions. Population figures generated by the U.S. Census and/or Washington state vary from those generated by counties or regional entities. The Council has not tried to reconcile these various statistics because we recognize they are only “best practices” predictions generated by different indicators.

Grays Harbor County is situated along the Pacific Coast of Western Washington. The area occupies roughly 45 miles of shoreline stretching south from the Olympic Peninsula to Pacific and Lewis Counties to the south. It extends inland from 30 to 50 miles. The county covers approximately 1,843 square miles. The large bay, Grays Harbor, dominates the coastal characteristics of this county. Inland topography varies from the Olympic Mountains of northern Grays Harbor County to the coastal regions of the west. Half of Grays Harbor’s 70,000 residents live in Aberdeen, Hoquiam, and Cosmopolis at the confluence of the Chehalis River and Grays Harbor. They are the center of the County and are 50 miles west of I-5 and our state’s capitol, Olympia. The County offers the only four-lane divided highway north of San Francisco that connects I-5 with the coast.

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Pacific County is situated in the southwest corner of Western Washington. It is bordered by the Columbia River and the Pacific Ocean. The county area occupies roughly 40 miles of shoreline stretching south to the mouth of the Columbia River along the Pacific Ocean and extending inland from 30 to 50 miles. The county covers 975 square miles and is home to a large and pristine body of water known as Willapa Bay. This large, productive estuary extends most of the length of the county. Inland topography varies from rolling hills and river lowlands. Over 85 % of this region is classified as forest land.

Lewis County is the one landlocked county of this workforce development area. Lewis County is located in southwest Washington. It touches eight other counties. To the north are Grays Harbor, Thurston, and Pierce. To the east is Yakima. To the south are Skamania, Cowlitz, and Wahkiakum Counties. And to the west is Pacific County. About three-fourths of its land is rugged, mountainous and forested. Its eastern mountains protect the western areas from icy temperatures. The Pacific Ocean to its west serves as a moderating influence on the weather. It stretches nearly 95 miles from the Coast Range across the Willamette-Puget lowland to the Cascade Crest and covers 2,449 square miles. The county is mostly low rolling hills covered with Douglas Fir and hardwoods. Approximately one-third of the county is national forest land.

Mason County lies on the southernmost reaches of Puget Sound. It covers 962 square miles in the lowland region southeast of the Olympic Mountains. Much of the county is blanketed with large stands of Douglas Fir and other coniferous saw timber. Roughly one-fourth of the county is in the Olympic National Forest. Hood Canal cuts into the county giving additional saltwater shoreline. Though geographically isolated, the county has a road network providing easy access to nearby population centers of Thurston County to the South, Kitsap County to the north and Pierce County to the east.

Thurston County lies at the southern end of Puget Sound on a gently rolling plain between the Cascade and Coast Ranges. The Sound and the Nisqually River form natural boundaries to the North and East while the foothills of the Coast Range form the western border. It is located at the southern end of Puget Sound in the beautiful Pacific Northwest.  Majestic Mount Rainier and the rugged Cascade Mountains are nearby to the east, while Washington's Pacific Ocean coast is just an hour's drive to the west.  Thurston County is 60 miles south of Seattle, Washington and is 100 miles north of Portland, Oregon.  The county covers 727 square miles. Olympia, the state capital and county seat, is located on Budd Inlet. More than three-fourths of the county is classified as forest land containing Douglas Fir and hardwoods. Thurston County has a well-established transportation system. Interstate 5 (I-5) is the main north-south artery, and several state highways serve the east-west traffic. The county also has a deep-water port facility in Olympia and a municipal airport in Tumwater. Important connections to Seattle and Portland are also made by two transcontinental railroad lines.

Tomorrow’s Economy and Changing Workforce in the

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Pacific Mountain Workforce Development Area

Over the last twenty-years, the five counties in the Pacific Mountain Workforce Development Area have changed dramatically. To understand these economic and demographic changes, the Pacific Mountain Workforce Development Council has compared the changes occurring throughout the state with those of our economic development region. When the two are compared, the Pacific Mountain region is experiencing a negative index of -16.9% over the last 15 year period between statewide norms of demographic and economic change and those experienced in this region. The large disparity between statewide trends and those impacting Pacific Mountain are due to very different economic infrastructures and immigration patterns. Pacific Mountain’s economy is diverging from that of the rest of the state rather than falling behind and the workforce reflects this divergence. Pacific Mountain is falling behind the average growth experienced throughout other parts of Washington in employment opportunities available in the management of companies and enterprises, professional and technical services (including the information revolution), arts, entertainment, and recreation. Two industrial sectors impacted by the technology revolution in recent years are manufacturing and information/technology.

The dramatic decrease in manufacturing throughout the state and nation is not profoundly impacting the PMWDA region. Manufacturing still provides a significant percentage of the High-Wage, High-Skills employment opportunities in the Pacific Mountain Region. As of 2006, 13,500 individuals were employed in manufacturing within the sector. Pacific Mountain Region’s manufacturers make up 4.63% of the total Washington State manufacturing sector. A 2006 site survey of manufacturing concerns within the Pacific Mountain region found that 82% of those surveyed plan to market new products and/or services and 64% plan expand their operations and payroll within the next three years. Fifty percent of these firms declared their primary market was regional, while another 31% declared their markets were national and international.

Only 18% of the manufacturers surveyed market their products and services locally (within the Pacific Mountain Workforce Area). When asked why they have located their companies in the Pacific Mountain Region, five considerations ranked highest: the growth and economic stability of Thurston County in particular, the location to talent pools and marketplaces, excellent networking and community opportunities, the quality of life, and the availability of a viable workforce.

In contrast, while high skills, high wages employment opportunities related to the information and technology sector are on the rise in other parts of the state, Pacific Mountain has not experienced significant development in this industry. The information revolution is impacting the PMWDC region, but it is not providing new job opportunities. Instead, the technological/information revolution is creating a need for rapid skill development on the part of employees and job seekers in the Pacific Mountain workforce. Most occupations now require a sophisticated level of computer literacy. Even job hunting necessitates the ability to search the internet for employment opportunities and submit applications and resumes on-line. For this reason, some of the counties that have not created the required information infrastructure are lagging behind industry standards in addressing these needs. The region’s workforce, especially in some of the rural counties, is also suffering from a continuing lack of exposure, education, and technology infrastructure to promote the information industry.

The PMWDA does not have the appropriately skilled labor force, employers or educational infrastructure to presently take advantage of the high growth opportunities in the information sector. The increase in employment opportunities in information related occupations within the State of Washington between 1990 and 2005 was about 43 percent. PMWDC’s share in this industry sector,

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was and is, negligible compared to the growth in other regional economies throughout the state. For example, information is a prime industry sector in Seattle-King County where it provides more that twice as many high skills, high wage opportunities for employees than are available in the rest of the state.

In-Migration and Out-Migration Issues have historically impacted both the Pacific Mountain Workforce Development Area and the State of Washington. According to the U.S. Census, as of 2005, Washington has an estimated population of 6,395,798, which is an increase of 501,658, or 8.5%, since the year 2000. This includes a natural increase of 221,958 people (that is, 503,819 births minus 281,861 deaths) and an increase from net migration of 287,759 people into the state. According to the Thurston Regional Planning Council, population changes for the State as a whole reflect strong growth in the Pacific Mountain Region as well. Of the Western Washington counties that experienced the highest rates of growth over the years (2000-2005), Thurston County ranked 5th in the State with an 8 % growth rate.

In 2006, it was estimated that 24 % of the population lived in the unincorporated Urban Growth Areas of the county, while 33 % live in the rural portions of the unincorporated county. The remaining 43 % live in the county’s cities. Roughly 75 % of Thurston County’s population growth since 1990 has been due to net in-migration, rather than natural increase (the excess of births over deaths). In terms of real numbers, the central Puget Sound counties to the north of Thurston are receiving the greatest overall number of new residents; however, the commute for employment purposes has significantly impacted the economic development of Thurston and surrounding counties. In terms of real numbers, the central Puget Sound counties to the north are receiving the greatest overall number of new residents. For example, King, Pierce, and Snohomish counties together have absorbed over 176,112 new residents between 2000 and 2005.

As the region’s demographics change, transportation is becoming a key issue to employment. During 2006, the Thurston Regional Planning Council prepared a draft study of commute patterns into and out of Thurston County. The study forecasts that commuting will double in the next 20 years to nearly 30,000 commuters coming into the Thurston Region (inbound) and 60,000 leaving the Thurston Region (outbound) each day. Outbound commuters will increasingly travel to Pierce and King Counties, while inbound commuters will travel from all directions into Thurston County.

Outbound commuters’ income represents $1 billion of Thurston County region’s $8 billion economy. These residents are having a profound impact on housing and household incomes in Thurston County. According to the U.S. census the mean travel time to commute to work for a worker age 16+ is 24.4 minutes. In Grays Harbor County the mean travel time for the same population of workers is 22.4 minutes. In Pacific County the commute mean travel time has lengthened from 20.7 minutes to 31 minutes as workers commute longer distances and drive on more congested freeways to reach work. In Mason County, where commuting is the primary employment strategy, the average commute is 30.8 minutes. The commute time for the average commuter in Lewis County is 25.7 and increasing. These shorter commute times are similar to those of commuters in King County (26.5 minutes); however, there is far less congestion along the traveled corridors within this densely populated and developed area so the commute in all of the five counties of the Pacific Mountain Region is considerably less challenging and stressful than commutes in more densely developed and populated parts of the state.

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Thurston County has consistently exceeded Washington’s overall rate of growth since the 1960s. This growth has not been evenly distributed among Thurston County’s cities. Several of the urban areas of the smaller towns and cities have been experiencing high rates of growth. The Yelm urban area (5.6 %) and the Rainier urban area (1.8 %) experienced the highest average annual growth rates in population between 2000 and 2006. For the last two decades, Thurston and the adjacent counties have been fifth in the state for the in-migration of people 55 and older (behind Island, San Juan, Jefferson, and Clallam counties). Amenities that an older population finds attractive, such as advanced health care and retirement facilities, serve to attract many retirement services and retired individuals and couples.

In 2000, persons age 65 and over constituted 11 % of the total county population. The percentage of residents in the county over 65 is expected to climb to 13 % by 2010 and should reach 19 % by 2020. The first of the “baby boomers” will be 65 in 2011. Between 2000 and 2006, net migration accounted for 76 % of Thurston County’s population growth. This growth should continue through 2030. The senior population continues to be a growing segment of the population, at national and state levels as well as in the Pacific Workforce Development Area. The growing senior population in Thurston County is a prime example of this

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demographic change. Migration is one of the primary factors contributing to the growth in Thurston County.

Grays Harbor County population increased 4.7 %, and Thurston County population increased 28.6 %. For Thurston County and the rest of the Pacific Mountain region, population growth has little to do with increased rates of birth. Instead, the majority of the population increase has been due to the migration of people into these counties. This migration is the result of a relatively stable economy, a high quality of life, and a lower cost of living than in the counties to the north. Long-term county migration patterns indicate that in-migration is becoming less concentrated in Washington’s largest metropolitan counties (e.g., Pierce, King). Some of the migration they would have otherwise received is moving toward neighboring counties with lower population densities, such as Thurston and Mason Counties. Compared to the 1980s, the 1990s saw a definite upswing in the rate of population increase due to migration. Of the 46,000-person increase in Thurston County between 1990 and 2000, 77 % was due to in-migration.

Migration Patterns - Population Change, 1980-2000

SOURCES: Official April 1 Population Estimates (OFM) Last modified: August 24, 2004, E-

mail: OFM.Forecasting@ofm.wa.gov

Approximately 55 % of Washington's population growth between 2000 and 2006 has been due to net migration - more people moving in than moving out. According to the state’s chief demographer, this continued migration will add more than 100,000 people to the state’s population by 2010. Demographer Theresa Lowe predicts Washington’s population will increase by over one-half million and reach nearly 6,750,000 by the end of the decade. In addition, Washington’s economic upturn that started in June 2003 is now outpacing the economic recovery of nearby states and the nation as a whole. Since job opportunities are the prime attraction of any area, Washington’s annual population growth, which increased from 57,000 in 2003 to 70,000 in 2004, approached 90,000 in 2005. This appears to be a legitimate rebound in state growth. The annual net migration to Washington is now forecast at about 60,000 per year through 2010.

Migration revised upward in 2004 state population forecast

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Last modified: August 24, 2004E-mail: OFM.Forecasting@ofm.wa.gov

Current employment forecasts for California and the US show Washington to be in a good

position to continue drawing larger numbers of movers. What actually occurs over the long

term depends on whether Washington can maintain its relative employment advantage.

Forecasts, particularly economic forecasts, are often subject to change.. For this reason, after

2008, the high near-term migration levels of 60,000 for Washington are then lowered to a

historically based average annual net migration of 48,100 per year through 2030.

Population Change and Net Migration

1960-2006

Migration into and out of state in the 1980s responded to the severe economic recession of the early 1980s and the aerospace expansion of the late 1980s.

The prolonged California recession, which resulted in out-migration of about 400,000 Californians per year in the early 1990s, contributed to Washington's high net migration figures.

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Even though economic growth in Washington was slow in the early 1990s, it still outperformed California.

Non-economic factors, including movement of retirees to Washington, also contributed to strong population growth in the 1990s.

Washington's current growth -- a population increase of 120,000 between April 2005 and April 2006 -- tracks well with the state's economic recovery, which started with improved employment figures in June 2003, and continues to outpace economic gains in nearby states and the nation as a whole.

Data Source: Office of Financial Management, Last modified: June 29, 2006, E-mail: OFM.Forecasting@ofm.wa.gov

In the last several years, Thurston County and the communities that comprise its metropolitan area have noticed a dramatic shift in the regional diversification of its workforce. The professional service sector is a leading component of the economic infrastructure. These services include technical Internet and web design firms and legal and consultant companies as well as other services such as:

Warehouse and distribution businesses that take advantage of the transportation links Medical services that provide emergency and maintenance health care for the

surrounding five-county region Traditional manufacturing by many of our local producers that captures a significant

piece of their specific global market. An emerging life sciences community that has grown in the region within the last five

years The five-county area is being transformed as this growth continues. The area is becoming part of an interconnected economic region, rather than a group of non related counties.  Average Annual Employment Growth for the Pacific Mountain Workforce Development Area in 1990-2005 was 1.9% and increased to 2.9% in 2004-2006. This was very similar to the state’s overall growth of 1.8% in 1990-2005 to 2.8% in 2004-2006. However, the average wage of workers in Pacific Mountain was approximately 2/3 the average wage of workers throughout the state. While this is an attractive feature of the infrastructure for potential employers, it is a challenge for both the workforce and PMWDA to overcome in terms of providing workers with high wages, high skills opportunities.

SUMMARY OF TOMORROW’S ECONOMY

Workforce Development Strategies are closely linked to regional economic development strategies and support the principles described in The Next Washington: Growing Jobs and Income in a Global Economy, 2007-2017. The Pacific Mountain Workforce Development Council (PMWDC) is proud of its ongoing efforts to link Workforce Development, Economic Development and Education into a strong partnership to increase the employment and wage earning opportunities for job seekers in our common region and beyond. Pacific Mountain Workforce Development Council has a strong partnership with the economic Development Community throughout our area. The Council has four positions dedicated to the economic development arena. Currently the Economic Development Council Directors from Pacific, Grays Harbor, Mason and Thurston counties are WDC members. Efforts are presently underway to add the EDC director from Lewis County as well.

Several years ago, the PMWDC sponsored three forums with Economic Development, Business and Education partners. The forums were productive and helped us gain insight into the partnership relationship the bind all three when employment efforts are successful. These forums

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also served to strengthen existing partnerships and create others where none had existed in the past. Since that time, we have continually improved our partnering infrastructure with the coalition that was created. These partnerships have generated opportunities for our job seeking clients while promoting economic development throughout the Pacific Mountain Workforce Development Region.

EMPLOYER REPORTED SKILL GAPS

Pacific Mountain Workforce Development Council has conducted focus groups with employers, economic development councils and chambers of commerce in each of the five counties in the Workforce Development Area. The purpose of these meetings was to solicit input from the individual counties regarding key industries, declining industries, new and emerging industries and where the gaps exist between employer needs and workforce skills. Industry data has been incorporated into the local area assessments. Despite the economic diversity within the Workforce Development Area, many of the issues of employers were similar.

As the baby boom generation slowly exits the U.S. workplace, a new survey of leaders from a consortium of business research organizations finds the incoming generation sorely lacking in much needed workplace skills — both basic academic and more advanced “applied” skills. This report, based on a detailed survey of 431 human resource officials, was conducted in April and May 2006 by The Conference Board, Corporate Voices for Working Families, the Partnership for 21st Century Skills, and the Society for Human Resource Management.   Its objective was to examine employers’ views on the readiness of new entrants to the U.S. workforce — recently hired graduates from high schools, two-year colleges or technical schools, and four-year colleges. “The future workforce is here, and it is ill-prepared,” concludes the report. In Washington State, only 74% of the 2005 high school class graduated on time. Moreover, minority and low-income students have higher than average dropout and lower than average on-time graduation rates.

A common problem voiced in each county (though stated in different ways) centered on what is commonly called in the workforce profession as soft skills. It was stated that for entry-level positions, employers need individuals who have good citizenship, strong communication skills, the ability to work as a team member, practical problem solving skills, the ability to use critical thinking and generalization skills. Employees need to understand the expectations of employers regarding attendance, punctuality and productivity. Basic skills in reading, writing and math were also identified by various employers as major skill gaps. Some employers test for these skills and do not hire low-level candidates.

More than 40 % of surveyed employers say incoming high school graduates hired are deficiently prepared for the entry-level jobs they fill. The report finds that recent high school graduates lack the basic skills in reading comprehension, writing and math, which many respondents say were needed for successful job performance. The findings show an especially big gap in writing skills. Nearly three-quarters (72 %) of high school graduates entering the job market are viewed as deficient in basic English writing skills, including grammar and spelling. When asked about readiness with regard to applied skills related to the workplace, research shows the greatest deficiency was reported in written communications (memos, letters, complex technical reports), and in professionalism and work ethic. Eighty-one percent of surveyed participants say their high school graduate hires were deficient in written communications.

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The Census Bureau defines “linguistically isolated” households as all household members 14 years old and over who have at least some difficulty with English. The Census 2000 data shows that 12.3 % of Thurston County residents age 5 and older, reported they spoke a language other than English at home in 2000. This figure has nearly doubled since 1990 when 6.5 % of county households reported speaking a language other than English at home. 1.7% of households in Thurston County are linguistically isolated. Unfortunately, comparable information is not available for the other four counties in the Pacific Mountain Workforce Area. Poor writing skills also continued to be a problem among both two-year and four-year college graduates. Nearly half of all survey participants (47 %) report that two-year college graduates are deficient in this skill. The basics plus an array of applied and social skills – from critical thinking to collaboration to communications – defines workforce readiness in the 21st century,” says Ken Kay, President of the Partnership for 21st Century Skills.               According to Susan R. Meisinger, President and CEO of the Society for Human Resource Management, “In a knowledge based economy a talented workforce with communication and critical thinking skills is necessary for organizations and the U.S. to be successful."For example, over half (58 %) of responding employers say critical thinking and problem solving skills are “very important” for incoming high school graduates’ successful job performance, yet 70 % of those surveyed rated recently hired high school graduates as deficient in critical thinking.

When asked how their hiring practices will change:

28 % of employers project that their companies will reduce hiring of new entrants with only a high school diploma over the next five years.

49.5 % said the %ages of two-year college graduates they hire would increase. Almost 60 % said their hires of four-year college graduates would increase. 42 % said their hires of post-graduates would increase over the next five years.

Looking toward the future, nearly three-fourths of the participants of one national survey of employers ranked “creativity/innovation” as among the top five applied skills projected to increase in importance for future graduates. In addition, knowledge of foreign languages, cultures, and global markets will become increasingly important for future graduates entering the U.S. workforce. When asked to project the changing importance of several knowledge and skill needs over the next five years, 63 % of survey participants cited foreign languages as increasing in importance more than any other basic knowledge area or skill. And, in separate questions about emerging content areas, half of the respondents noted the use of “non-English languages as a tool for understanding other nations, markets, and cultures,” while 53 % selected “understanding of global markets and the economic and cultural impacts of globalization.”  In the area of occupational skills, the gaps identified were more diverse.               Making appropriate choices concerning health and wellness is the number one emerging topic considered most critical for future graduates entering the workforce. More than three-quarters of surveyed employers (76 %) said that “making appropriate choices concerning health and wellness, such as nutrition, exercise, stress reduction, work-life effectiveness” is an emerging content area that will be most critical for future graduates. While not defined as a “soft skill”, inappropriate and

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potentially dangerous on-the-job choices and behaviors are making it difficult for employers throughout the Pacific Mountain region to fill their workforce needs.

For example, employers report that a large percentage of applicants taking mandatory urinalysis tests do not pass. Those employers requiring mandatory urinalysis tests are finding as many as three out of every four applicants for existing openings are unable to pass the test. Often these applicants are warned ahead of time that they will be required to take the test and yet when the time comes, they still fail. Employers interpret this behavior as an inability of the applicant to make sound judgments. In most cases, these candidates are not hired because they “lack the understanding and safety concerns necessary to be successful in the employer’s work environment”.

In general, all counties within the Pacific Mountain Workforce Development Area reported significant, and in some cases, critical demands for a variety of healthcare occupations such as Registered Nurses, Licensed Practical Nurses, Diagnostic Imaging and Medical Records and Coding personnel. In addition, a recent study states that carpenters, construction equipment operators, painters and electricians are all in the top 25 occupations with the largest demand-supply gap within the workforce development area.

In Grays Harbor, there is a need for more welders, laminators, electrical and mechanical technicians and saw filers. Saw filers are one of the more highly skilled positions in the local mills. Welders, laminators, and technicians are needed for boat building and marine repair. Local area employers and employer organizations in Grays Harbor report a shortage of skilled workers in the occupations listed as “in demand”. Primarily, these shortages are in the areas of boat building, technology support, corrections, medical and retail. The skills identified that will be needed by these occupations include, but are not limited to, computer skills, customer service, welding, laminating, electrical and mechanical technical skills.

The EDC, community colleges and the Workforce Development Council are collaborating to address Grays Harbor County’s critical labor shortages in the wood products industry. With the increase in available timber and technological advances in the milling of timber, a higher skilled workforce is needed. Industry partners throughout the manufacturing sectors are having similar problems.

Local area employers and employer organizations in Pacific County report a shortage of skilled workers in some of the occupations listed earlier as above average growth and in demand. Primarily, these shortages are in the areas of manufacturing, technology support, medical and retail. The skills identified that will be need by these occupations include, but are not limited to, computer skills, customer service, welding, and lamination, electrical and mechanical skills. These skill sets are indicated above for Grays Harbor but are equally in demand in the other four counties within the PMWDA.

Discussions with interested parties in Pacific County helped identify the gaps existing between the available workforce in their county and their employers’ needs. Employers reported that in the past five years, the quality of the entry-level workforce has declined substantially. It was emphasized that the greatest skill gap came in the area of “social/citizenship skills”.

In the article, Common Theme Concerning Pacific County Retail Business Owners: Workforce, dated October 2006, the author states “over 30% of the surveyed businesses in Pacific County “are having difficulty attracting and keeping qualified staff. The ratings given for worker availability,

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quality, and stability were all below average.” By 2006, the unemployment rate in Pacific County had dropped to 6.4 %. Skilled and abundant labor appears to be one of the major limitations to economic growth in Pacific County.

In addition to the soft skills identified by employers in all the counties, Lewis County indicated a need for workers with fabrication skills. Workers with these skills are in high demand with local manufacturing companies. Several employers in Lewis County also reported that it has become increasingly more difficult to hire job-ready, entry-level employees. Most agree that the stronger economy has employed many individuals. Those remaining possess many barriers to employment. Thurston and Mason County employers indicated a need for employees with a higher level of computer skills. Mason County has identified employee needs that cross a variety of occupations. While in Thurston County, the greatest needs are in high level knowledge-based occupations.

In the area of occupations skills, the gaps identified were more diverse. In general, all areas within the workforce development area reported a significant, and in some cases, a critical need for a variety of health care occupations such as Registered Nurses, Licensed Practical Nurses, Diagnostic Imaging, Occupational Therapy, Physical Therapy, and Medical Records and Coding personnel.

Employer Expectations

The Pacific Mountain Workforce Development Council (PMWDC) completed a soft skills survey with employers in the five-county area (Grays Harbor, Lewis, Mason, Pacific and Thurston) on January 2003. The goal of the survey was to ensure that job applicants have the skills employers are seeking. The following chart shows the needs identified by employers as essential skills required to obtain and maintain a job.

Expectation DefinitionDependability Being able to depend on and trust that you do what you say you

will do.

Ethical Behavior Accepts the standard of behavior set for the organization (honesty, respectful attitude, etc.).

Work Ethic Shows respect for the resources of the employer and customers (including time you are paid, level of productivity, property of others).

Punctuality On time, ready to work, work the full scheduled time.

Job Commitment Recognizes the need to complete a job that was started and provide follow through to completion.

Customer Service Friendly, respectful, helpful to others.

Teamwork Ability to work in a group to accomplish a task. Aware of how their actions affect others.

Accountability Recognizes consequences of actions and accepts personal responsibility. Does not put the blame on others or circumstances.

Confidentiality Ability to handle workplace sensitive information.

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Positive Attitude Willingness to learn. Listens and takes direction. Accepts constructive criticism. Makes the best of a situation.

Works Independently Works well unsupervised. When given direction, the employee shows the ability to complete tasks.

Interpersonal Skills Respectful, considerate of others, listens, comfortable to be around.

Understands Expectations

Knows and accepts what is expected of his/her participation.

Initiative Takes on tasks without being asked. Looks for opportunities and takes them.

Appropriate Appearance/Hygiene

Good personal grooming. Has a clean presentation. No perfume or aftershave.

Communication Skills Appropriate language usage, good listener, asks questions when needed.

Flexibility Ability to adapt to make something work.

Personal Issue Management

Personal issues don't interfere with employer's expectations..

Problem Solving Ability to look at issues, personal and otherwise, and identify possible solutions.

Workplace Etiquette Acceptable levels of being polite.

In general, employers and employer organizations suggested many of the same skills and occupations identified in a recent O*NET report on the top ten skills needed, knowledge needed and occupations projected within the Workforce Development Area in the next ten years. That data is as follows:

TOP TEN O*NET SKILLS NEEDED IN PACIFIC MOUNTAIN CONSORTIUM'S OCCUPATIONS WITH THE MOST JOBS

RANKING O*NET KNOWLEDGE

NEEDED

DESCRIPTION OF KNOWLEDGE

1 Customer and Personal Service

Knowledge of principles & processes for providing customer & personal services including needs assessment techniques, quality service standards, alternative delivery systems & customer satisfaction evaluation techniques.

2 English Language

Knowledge of the structure and content of the English language including the meaning and spelling of words, rules of composition and grammar.

3 Mathematics Knowledge of numbers, their operations and interrelationships including arithmetic, algebra, geometry, calculus, statistics and their applications.

4 Clerical Knowledge of administrative and clerical procedures & systems such as word processing systems, filing & records management systems, stenography & transcription, forms design principles & other office

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procedures & terminology.5 Sales and

MarketingKnowledge of principles and methods involved in showing, promoting, & selling products or services. This includes marketing strategies & tactics, product demonstration and sales techniques, and sales control systems.

6 Economics /Accounting

Knowledge of economic & accounting principles and practices, the financial markets, banking, & the analysis and reporting of financial data.

7 Education and Training

Knowledge of instructional methods & training techniques including curriculum design principles, learning theory, group & individual teaching techniques, design of individual development plans & test design principles.

8 Administration and Management

Knowledge of principles & processes involved in business & organizational planning, coordination & execution. This includes strategic planning, resource allocation, manpower modeling, leadership techniques & production methods.

9 Communications and Media

Knowledge of media production, communication, and dissemination techniques and methods including alternative ways to inform and entertain via written, oral, visual media.

10 Computers and Electronics

Knowledge of electric circuit boards, processors, chips and computer hardware and software, including applications and programming.

TOP TEN OCCUPATIONS WITHIN THE REGION WITH THE MOST OPENINGS REQUIRING A BACHELOR’S DEGREE AND EXPERIENCE 2000-2010

OCCUPATIONS REQUIRING A BACHELOR'S DEGREE

OCCUPATIONAVG.

ANNUAL OPENINGS

AVG ANNUAL GROWTH

RATE

MEDIAN ANNUAL WAGES

Secondary school teachers* 79 1.76% $45,874Elementary school teachers* 65 1.76% $47,959Accountants & auditors 44 .88% $43,678Computer programmers 40 1.04% $53,376Middle school teachers* 33 1.76% $47,120Insurance sales agents 28 2.71% $35,409Civil engineers 26 1.29% $57,460Special education teachers, preschool, kindergarten & elementary school teachers

24 1.76% $45,736

Environmental scientists & specialists, including health

19 .66% $45,824

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Network & computer system administrators 18 .83% $54,687*Except special and vocational education.

Most of Pacific Mountain Workforce Development Council’s efforts are consistent with the Governor’s plan, The Next Washington: Growing Jobs and Income in a Global Economy, 2007-2017. One of PMWDC’s greatest strengths is its focus on regional economic growth. This regional approach to talent and economic development has been applied in a variety of ways:

The Workforce Training and Education Coordinating Board made available resources for SKILL Panels. The PMWDC has taken advantage of these opportunities. Our first SKILL panel was designed to target the critical employment needs of our local hospitals. The panel consisted of hospital administrators, practitioners, Workforce professionals, educators, labor representatives and economic development specialists. The panel was very productive. We studied the issues, identified the greatest problems and addressed the needs of these regional employers as they related to their existing and future healthcare workforce requirements. As a result of this concerted effort, PMWDC was able to secure nearly a million dollars used to double the capacity of our community colleges to train nurses and other healthcare providers. While this effort has begun to close the existing skill gap between our qualified labor force and the needs of our local colleges, these occupations are still in demand and the demand is growing.

Our most recent SKILL panel experience has been in the area of marine manufacturing. By promoting a regional effort, we brought together representatives from businesses, economic development specialists, Workforce professionals and other interested parties from three Workforce Development areas (representing eleven counties) to create partnerships that would develop, operate and expand efforts to close the skill gaps between the existing workforce and the needs of a growing marine manufacturing industry. This regional effort was extremely successful from the standpoint of maximizing the deliverables in services and training to area employees while decreasing program expenditures.

PMWDC has and will continue to support and promote the creation of a technical, regional training center at the Satsop Industrial Park.

Another example of Pacific Mountain’s movement toward a regional economy is the announcement that Imperium Renewables, Inc. will produce the state's first home-grown biodiesel product at their new plant in Grays Harbor. This new addition to the Grays Harbor is called Imperium Grays Harbor is a major employment-related development. The new plant will be capable of producing up to 100 million gallons of biodiesel fuel mainly from soybean, canola oil, and other extracts. Biodiesel is a statewide industry, energy and political priority that will positively impact agriculture in Eastern Washington, and energy and manufacturing throughout the PMWDA. This particular enterprise will support the economy of the five-county region as well as the self-sufficiency of the State of Washington.

Pacific Mountain has also been funded as an Innovation Partnership Zone by Community Trade and Economic Development because of its Regional Economic

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Development Efforts. Pacific Mountain Workforce Development Council was selected as a Workforce Innovation in Regional Economic Development) WIRED Grant recipient by the governor in January 2006. We were one of three chosen in the state. While we were not funded by the U.S. Department of Labor, we were chosen as one of four applicants in the Nation to receive the services of the National Center for Education and the Economy. We requested and received consulting services from these national providers to help further our regional efforts.

Most recently, the Pacific Mountain Workforce Development Council was selected as one of two applicants from the State of Washington to submit a WIRED grant proposal to the U.S. Department of Labor. We are confident that we are in a better position to be successful this time.

These are a few of PMWDC’s ongoing efforts to ensure our policies, programs, and services are consistent with the Governor’s vision of The Next Washington: Growing Jobs and income in a Global Economy, 2007- 2017. Pacific Mountain Workforce in partnership with EDCs, and other economic development entities, continues to focus on the development of both the economic infrastructure of the region as well and the talent development to support more high-skills, and high-wage employment opportunities. Since developing the solid wood business plan for Hybrid Poplar in 1993, the acres of hybrid poplar have increased to over 2,000 in the district. Since that first plan there have been corporations outside of the area that have developed solid wood plans. The county EDCs continues to work with investors and companies towards the goal of establishing a solid wood poplar industry within the area. In 1995, Columbia-Pacific RC&EDD, a partner of the Pacific Mountain Workforce Development Council, created the Entrepreneurial Revolving Loan Fund to assist small businesses through micro loans. The fund was soon turned over to the Cascadia Revolving Fund to manage. Cascadia Revolving Fund built on the Entrepreneurial Revolving Loan Fund to create the Olympic Micro loan Fund, which now serves nine counties, including all four counties in the Pacific Workforce Region. Over 800 jobs have been created or retained as a result of this program. The loan sizes have ranged from $6,600 to $50,500.

Job Availability Based Upon Educational Requirements

Education Level Estimated Job Vacancies

Full-time Positions

Permanent Positions

Newly created Positions

Requiring Licenses or Certificates

No Requirement 861 53% 66% 37% 48%

High School/GED 892 57% 86% 12% 58%

Some College 62 82% 95% 9% 48%

Associates or Vocational Degree

573 43% 97% 3% 90%

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Bachelor Degree 497 77% 98% 4% 79%

Graduate Degree 136 66% 100% 17% 86%

Other 1,091 75% 87% 6% 67%

No Response 4,828 79% 95% 4%f 34%

Pacific Mountain WDA Totals

3,646 57% 86% 15% 44%

Source: Washington State Job Vacancy Survey, April 2006. Per annum.Key: The symbol < indicates “less than”.

Industry Estimated Job Vacancies

Full-time Positions

Permanent Positions

Newly Created Positions

Reporting Education Beyond HS/GED

Requiring License or Certificate

Requiring Previous Experience

Management 86 83% 100% 2% 96% 53% 95%Business and Financial

84 92% 100% 13% 88% 26% 84%

Computer and Mathematical

53 100% 100% 8% 82% 31% 100%

Architecture and Engineering

<25 100% 100% 67% 100% 0% 100%

Life, Physical and Social Science

31 88% 93% 0% 88% 50% 87%

Community and Social Services

52 58% 100% 3% 68% 76% 75%

Legal <25 100% 100% 0% 100% 100% 100%Education, Training and Library

155 83% 84% 3% 97% 92% 95%

Arts, Design, Entertainment Sports and Media

29 74% 84% 0% 91% 37% 90%

Healthcare Practitioners and Technical

699 43% 100% 1% 99% 99% 99%

Healthcare Support 138 56% 98% 0% 58% 90% 81%Protective Service 32 58% 77% 0% 0% 100% 59%Food Preparation and Serving Related

536 26% 82% 28% 2% 89% 55%

Building and Grounds Cleaning and Maintenance

161 40% 61% 23% 3% 31% 57%

Personal Care and 159 35% 95% 15% 5% 36% 28%

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ServiceSales and Related 332 51% 82% 23% 7% 19% 32%Office and Administrative Support

340 63% 85% 13% 21% 14% 76%

Farming, Fishing, and Forestry

<25 100% 0% 100% 0% 0% 100%

Construction and Other

171 100% 84% 20% 31% 66% 90%

Production 89 85% 94% 8% 0% 19% 21%

Total Vacancies 3,646 57% 86% 15% 44% 63% 75%Job Vacancies by Industry in the Pacific Workforce

Development

Industry Estimated Job Vacancies

Full-time Positions

Permanent Positions

Newly Created Positions

Reporting Education Beyond HS/GED

Requiring License or Certificate

Requiring Previous Experience

Management 86 83% 100% 2% 96% 53% 95%Business and Financial

84 92% 100% 13% 88% 26% 84%

Computer and Mathematical

53 100% 100% 8% 82% 31% 100%

Architecture and Engineering

<25 100% 100% 67% 100% 0% 100%

Life, Physical and Social Science

31 88% 93% 0% 88% 50% 87%

Community and Social Services

52 58% 100% 3% 68% 76% 75%

Legal <25 100% 100% 0% 100% 100% 100%Education, Training and Library

155 83% 84% 3% 97% 92% 95%

Arts, Design, Entertainment Sports and Media

29 74% 84% 0% 91% 37% 90%

Healthcare Practitioners and Technical

699 43% 100% 1% 99% 99% 99%

Healthcare Support 138 56% 98% 0% 58% 90% 81%Protective Service 32 58% 77% 0% 0% 100% 59%Food Preparation and Serving Related

536 26% 82% 28% 2% 89% 55%

Building and Grounds Cleaning and Maintenance

161 40% 61% 23% 3% 31% 57%

Personal Care and Service

159 35% 95% 15% 5% 36% 28%

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Sales and Related 332 51% 82% 23% 7% 19% 32%Office and Administrative Support

340 63% 85% 13% 21% 14% 76%

Farming, Fishing, and Forestry

<25 100% 0% 100% 0% 0% 100%

Construction and Other

171 100% 84% 20% 31% 66% 90%

Production 89 85% 94% 8% 0% 19% 21%

Total Vacancies 3,646 57% 86% 15% 44% 63% 75%

Job Vacancies by Occupation in the Workforce Development Region

Occupation Title Estimated Job Vacancies

Full-time Positions

Permanent Positions

Newly Created Positions

Reporting Education Beyond HS/GED

Requiring Licenses or Certificates

Requiring Previous Experience

Combined Food Preparation and Service, including Fast Food

552 14% 100% 2% 0% 94% 2%

Cashiers 381 5% 19% 9% 0% 5% 0%Nursing Aides, Orderlies & Attendants

227 100% 100% 15% 52% 100% 19%

Personal & Home Care Aides

212 65% 100% 6% 0% 19% 19%

Stock Clerks and Order Fillers

155 6% 15% 6% 0% 90% 0%

Retail Salespersons 140 12% 28% 26% 0% 0% 7%Truck Drivers, Heavy and Tractor-Trailer

136 100% 81% 9% 0% 100% 88%

Farm workers and Laborers, Crop, Nursery, and Greenhouse

103 100% 0% 0% 0% 0% 0%

Cooks, Fast Food 79 11% 100% 11% 0% 56% 11%Registered Nurses 74 91% 100% 28% 100% 100% 63%Carpenters 72 100% 91% 54% 0% 0% 81%Driver/Sales Workers 70 0% 100% 0% 0% 100% 0%Janitors & Cleaners, except Maids and Housekeeping Cleaners

70 14% 69% 0% 0% 0% 30%

Licensed Practical & Licensed Vocational Nurses

58 76% 100% 0% 100% 100% 53%

Maids and 55 22% 84% 0% 0% 0% 9%

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Housekeeping CleanersRehabilitation Counselors

55 13% 100% 13% 13% 100% 13%

Coaches and Scouts 49 0% 30% 0% 70% 30% 70%Maintenance and Repair Workers, General

41 24% 100% 24% 0% 42% 12%

Dining Room& Cafeteria Attendants & Bartender Helpers

40 22% 100% 0% 0% 78% 0%

Laborers & Freight, Stock, and Material Movers, Hand

40 36% 36% 0% 0% 0% 19%

Construction Laborers

39 74% 66% 51% 0% 0% 0%

Production Workers, All other

38 100% 0% 100% 0% 0% 100%

Billing and Posting Clerks and Machine Operators

38 100% 100% 0% 18% 0% 18%

Dishwashers 38 59% 100% 0% 0% 0% 0%Office Clerks, General

37 68% 68% 18% 0% 0% 100%

Total Vacancies 4,017 51% 76% 12% 19% 46%

31%

Source: Washington State Job Vacancy Survey, April 2006.

Future Market Driven Skills Required

Some of the EDCs and other state economic development organizations in collaboration with the PMWDC have begun small business incubation programs. These programs provide a dynamic process of business enterprise development. Incubators nurture young firms, helping them to survive and grow during the start-up period when they are most vulnerable. Incubators provide an array of business support resources and services, such as hands-on management assistance, access to financing and orchestrated exposure to critical business or technical support services. Most also offer shared office services (e.g., reception, answering service, web page maintenance, marketing assistance), access to equipment, flexible leases and expandable space. Since the remote communities in the PMWDA support their economy and employment infrastructure through the recruitment and retention of small business, incubation programs can provide an excellent source of employment opportunities to local workers. A small business incubator reduces the risk of small business failures. Startup firms in the over 800 small-business incubators which are members of the National Business Incubation Association (NBIA) increase sales and add an average of 3.7 full-time and part-time jobs per firm. Eighty-four percent of incubator graduates stay in their communities and continue to provide a return to their investors. The most common goals of incubation programs are creating jobs in a community, enhancing a community’s entrepreneurial climate, retaining businesses in a community, building or accelerating growth in a local industry, and diversifying local economies.

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Government funding and the cyclical nature of government activities profoundly impacts industrial sectors throughout the PMWDA. In 2007, the legislative granted appropriations from the State Construction Account that would be fund the construction of a new health care facility at the Washington Corrections Center for Women. They have also funded the expansion of the Reception Center at this same Corrections Center. The predesign and construction of this expansion, costing several million dollars, will begin in 2007 and be completed during 2011. A predesign will also be provided for the new expansion of the Reception Diagnostic Center at the Washington Corrections Center by the end of The construction will be completed in 2013. This expansion will cost several million dollars. The governor has also appropriated funds for the expansion of Stafford Creek Correctional Facility. In addition, funding for preservation projects at corrections facilities are included in the statewide budget. Another funded project will add 100 beds at the Mission Creek Corrections Center for Women. In addition, funds for emergency repairs of $12,500,000 have been appropriated through 2011. In all, these projects will cost the state over $100 million. In addition, appropriations including funds for growth in state government will available from July, 2007 to July, 2013. These appropriations will provide future, high skills, high wages employment opportunities in construction throughout the Pacific Mountain Workforce Area.

The five counties of the Pacific Mountain Workforce Development Area represent five local economies as well as one interconnected region economy with unique labor market areas. With the exception of Thurston County, these local economies are natural resource based and primarily dependent on a highly cyclical and seasonal the Forest Services and Environmental agencies and activists are developing a plan for sustainable, harvests. Facilities to manufacture wood products are being built to utilize a variety of raw materials. These facilities are employing many of the area’s dislocated workers. Changes in the industry and technology make it necessary to train the workforce to successfully meet the needs of the changing industry. In order to qualify for newly created positions, candidates must have higher skill levels than they did for previous entry level positions. The following chart shows job availability based upon education requirements:

Education Level Estimated Job Vacancies

Full-time Positions

Permanent Positions

Newly created Positions

Requiring Licenses or Certificates

No Requirement 861 53% 66% 37% 48%High School/GED 892 57% 86% 12% 58%

Some College 62 82% 95% 9% 48%

Associates or Vocational Degree

573 43% 97% 3% 90%

Bachelor Degree 497 77% 98% 4% 79%

Graduate Degree 136 66% 100% 17% 86%Other 1,091 75% 87% 6% 67%

No Response 4,828 79% 95% 4%f 34%

Pacific Mountain WDA Totals

3,646 57% 86% 15% 44%

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The counties of the Pacific Mountain Workforce Consortium are expected to have approximately 72,975 job offerings between 2004 and 2014. The following information includes the most recent projections for occupational growth and demand within the counties of Grays Harbor, Lewis, Mason, Pacific and Thurston. Based upon the Washington State 2006 average annual wage for each education/training category, education pays:

Little Preparation $23,567Short Preparation $34,887Middle-Level Preparation $43,402Long Preparation $58,040

According to the Pacific Mountain Workforce Consortium Occupational Outlook, the overall income averages within each of the preparation categories have not increased over the last five years. While salaries associated with government employment and some other employment sectors have shown a moderate increase, the volatile nature of industry and limited economic base of the counties has led to a freezing or decreasing of salaries within many categories. Overall, salaries are lower than expected for the same categories cited in prior years.

Major Pacific Mountain Region Employers in each of the region’s five counties differ despite their common reliance on Natural Resources. In Grays Harbor County a forest products firm is the largest employer, although that is expected to change later this year. In Pacific County, two of the five largest employers are seafood processing-related firms. In Mason County, the government jobs available account for 35% of the total positions accounted for at the 50 largest private and public employment locations. In Lewis County, the county government, retail and wood products are the primary employment sectors. Forest products, health care, service-related businesses, and construction provide the majority of private sector employment. The Pacific Mountain Workforce region remains largely dependent on natural resource industries for the bulk of industrial employment.

The following charts summarize the occupations available in the Pacific Mountain Workforce Development Area based upon changing demographics and the characteristics of the current workforce. These charts indicate the educational, literacy and preparation levels required for an employment candidate to obtain employment and be successful in various occupations. Changes in technology and industry over the previous decade are impacting the skill levels required of potential employees within most sectors of the economy. Training and retraining is becoming an increasingly critical issue for those who are unemployed to meet the needs of the existing and future workforce.

Little Preparation (Less than 1 month of training, usually on the job.)

Occupational TitlesAvg. Annual

Total Openings 2004-2014

Unemployment Insurance** Ratio

2005

Estimated Mean Wage 2005

Personal and Home Care Aides 1,204 2.4% $20,448

Landscaping and Grounds keeping Workers

1,454 2.2% $23,662

Bill and Account Collectors 596 2.8% $32,060

Receptionists and Information Clerks

1,021 2.1% $22,008

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Combined Food Preparation and Serving Workers, Fast Food

4,370 1.8% $18,168

Telemarketers 253 3.6% $22,333Office Clerks, General 5,476 1.6% $26,260

*The %age of people in the occupation who sought unemployment insurance benefits.

Short Preparation (1-12 months of training on the job, through an employer or institutional instruction or a combination.)

Occupational TitlesAvg. Annual Total

Openings 2004-2014Unemployment

Insurance** Ratio 2005

Estimated Mean Wage

2005Customer Service Representatives 1,825 1.8% $29,744Dental Assistants 526 2.0% $37,791Social and Human Services Assistants 424 2.2% $27,232Secretaries, Except Legal, Medical, and Executive

2,509 1.6% $31,219

Roofers 343 2.2% $29,668Medical Assistants 445 1.9% $27,720Sales Representatives, Services, All Others 262 2.3% $41,848Excavating and Loading Machine and Dragline Operators

133 3.6% $49,447

Data Entry Keyers 222 2.4% $21,826Sales Representatives, Wholesale and Manufacturing, Technical and Scientific Products

223 2.3% $72,293

Bookkeeping, Accounting and Auditing Clerks

2,744 1.5% $30,399

Painters, Construction and Maintenance 881 1.^5 $31,787Cooks, Institution and Cafeteria 499 1.7% $25,150Demonstrators and Product Promoters 104 4.0% $17,793Word Processors and Typists 151 3.9% $27,315

*Mean Annual Wages are unavailable for occupation.

Middle-Level Preparation (1-4 years of training on the job, through an employer or institutional instruction, or a combination, including apprenticeships, certificates, diplomas or associate degrees.)

Occupational TitlesAvg. Annual Total

Openings 2004-2014Unemployment

Insurance** Ratio 2005

Estimated Mean Wage

2005Medical Secretaries 1,057 2.0% $30,163Gaming Dealers 592 2.2% $23,891Computer Support Services 580 2.0% $36,756Registered Nurses 2,559 1.5% $61,361Fitness Trainers and Aerobics Instructors 235 2.3% $41,540

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Brickmasons and Blockmasons 223 2.6% $59,144First Line Supervisors/Managers of Office and Administrative Support Workers

1,673 1.5% $43,354

Photographers 160 3.0% $37,562Massage Therapists 369 1.9% $59,589Medical Transcriptionists 235 2.3% $32,798First Line Supervisors/Managers of Personal Service Workers

281 2.0% $40,244

Licensed Practical and licensed Vocational Nurses

718 1.6% $36,715

Health Technologists and Technicians, All Other

228 2.2% $42,147

Hairdressers, Hairstylists, and Cosmetologists

563 1.6% $24,442

First Line Supervisors/Managers of Food Preparation and Serving Workers

741 1.5% $33,300

Long Preparation (4 years or more of academic work, bachelor's degree or higher; may require additional work experience.)

Occupational TitlesAvg. Annual Total

Openings 2004-2014Unemployment

Insurance** Ratio 2005

Estimated Mean Wage

2005

Rehabilitation Counselors 722 2.0% $34,158

Mental Health Counselors 143 3.4% $38,918

Child, Family and School Social Workers 195 2.6% $33,277

Veterinarians 123 3.5% $67,910

Network Systems and Data Communications Analysts

182 2.8% $59,815

Lawyers 1,062 1.5% $83,422

Accountants and Auditors 2,143 1.4% $50,340

Management Analysts 569 1.6% $54,160

Zoologists and Wildlife Biologists 366 1.7% $55,810

Elementary School Teachers, Except Special Education

1,657 1.4% $46,948

Writers and Authors 145 2.6% $44,630

Secondary School Teachers, Except Special and Vocational Education

1,079 1.4% $47,383

Network and Computer Systems Administrators 331 1.7% $38,253

The next two charts are based upon predictions and forecasts about the nature of occupations which will grow most quickly over the next decade. The first chart summarizes those occupations that will require the greatest number of new employees and provide the largest opportunity for employment

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within these occupations. This information is extrapolated from the following chart. It predicts the fastest growing occupations within the Pacific Mountain Workforce Development Area. Those occupations listed are predicted to exhibit a growth rate of 1.5% per annum to meet the growing needs of all economic sectors.

A Summary of the Fastest Growing Occupations (by total Increase in Employment Opportunities)

Occupational Titles Employment 2004

Estimated Employment

2014

Number of New

Employees Required

Office and Administrative Support Occupations 28,865 33,834 4,969

Food Preparation and Serving Related Occupations 14,280 16,536 2,256

Construction Occupations 10,099 11,684 1,585

Healthcare Practitioners and Technical Occupations 7,460 8,800 1,340

Health Diagnosing and Treating Practitioners 4,299 5,060 761

Community and Social Services Occupations 3,555 4,252 697

Counselors, Social Workers, and Others 3,260 3,897 637

Health Technologists and Technicians 2,828 3,361 533

Other Healthcare Support Occupations 2,026 2,460 434 Bookkeeping, Accounting, and Auditing Clerks 2,744 3,172 428Janitors and Cleaners, Except Maids and Housekeeping 2,373 2,779 406

Landscaping and Groundskeeper Workers 1,454 1,806 352

Personal and Home Care Aides 1,204 1,526 322

Entertainment Attendants and Related Workers 1,204 1,471 267

Receptionists and Information Clerks 1,021 1,262 241

Medical Secretaries 1,057 1,292 235

Sales Representatives, Wholesale and Manufacturing 1,307 1,519 212

Lawyers 1,062 1,230 168

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Total Fast Growing Occupations in Pacific Mountain WDAOccupation 2004 2014 Change Percentage

ChangePercentage

Growth RateSeptic Tank Servicers and Sewer Pipe Cleaners 40 67 27 67.5 5.3Funeral Service Workers 64 101 37 57.8 4.7Embalmers 50 78 28 56.0 4.6Psychologists, All Other 18 28 10 55.6 4.5Sociologists 35 53 18 51.4 4.2Demonstrators and Product Promoters 104 154 50 48.1 4

Vet. Assistants and Laboratory Animal Caretakers 75 110 35 46.7 3.9Veterinary Technologists and Technicians 72 104 32 44.4 3.8Interpreters and Translators 27 39 12 44.4 3.8

Geoscientists, Except Hydrologists and Geographers 27 39 12 44.4 3.8

Excavating and Loading Machine and Dragline Ops 133 189 56 42.1 3.6Telemarketers 253 359 106 41.9 3.6

Office Machine Operators, Except Computer 97 137 40 41.2 3.5Veterinarians 123 173 50 40.7 3.5Mental Health Counselors 143 200 57 39.9 3.4

Molders, Shapers, and Casters, Ex. Metal and Plasterers 46 64 18 39.1 3.4Technical Writers 54 74 20 37.0 3.2Mail Clerks and Mail Machine Operators, Excluding Postal Service 132 179 47 35.6 3.1Tax Preparers 40 54 14 35.0 3.1Motorcycle Mechanics 40 54 14 35.0 3.1Hazardous Materials Removal Workers 29 39 10 34.5 3Photographers 160 215 55 34.4 3Word Processors and Typists 151 202 51 33.8 3Medical Scientists, Except Epidemiologists 33 44 11 33.3 2.9Pest Control Workers 160 213 53 33.1 2.9Multi-Media Artists and Animators 46 61 15 32.6 2.9Computer Software Engineers, Systems Software 65 86 21 32.3 2.9

Bill and Account Collectors 596 788 192 32.2 2.8

Refuse and Recyclable Material Collectors 110 145 35 31.8 2.8

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Network Systems and Data Communications Analysts 182 239 57 31.3 2.8Helpers—Brick Masons, Block Masons, Stonemasons 61 79 18 29.5 2.6Child, Family, and School Social Workers 195 252 57 29.2 2.6

Occupation 2004 2014 Change Percentage Change

Percentage Growth Rate

Slaughterers and Meat Packers 48 62 14 29.2 2.6Writers and Authors 145 187 42 29.0 2.6First-Line Supervisors/Managers of Landscaping, Lawn Servicers 181 233 52 28.7 2.6Architectural and Civil Drafters 99 127 28 28.3 2.5Landscape Architects 47 60 13 27.7 2.5Data Entry Keyers 222 282 60 27.0 2.4

Media and Communication Equipment Workers 245 311 66 26.9 2.4Personal and Home Care Aides 1,204 1,526 322 26.7 2.4Surveying and Mapping Technicians 168 213 45 26.8 2.4Rail Car Repairers 49 62 13 26.5 2.4Employment, Recruitment, and Placement Specialists 161 203 42 26.1 2.3Sales Representatives, Wholesale and Manufacturing 223 281 58 26.0 2.3Fitness Trainers and Aerobics Instructors 235 296 61 26.0 2.3Structural Iron and Steel Workers 62 78 16 25.8 2.3Optometrists 43 54 11 25.6 2.3

Sales Representatives, Services, All Other 262 329 67 25.6 2.3Substance Abuse and Behavioral Disorder Counselors 106 133 27 25.5 2.3

Food Prep. and Serving Related Workers, All Other 67 84 17 25.4 2.3

Switchboard Operators, Including Answering Service 174 218 44 25.3 2.3

Computer Software Engineers, Applications 111 139 28 25.2 2.3Communications Equipment Operators 175 219 44 25.1 2.3Medical Transcriptionists 235 294 59 25.1 2.3

Health Technologists and Technicians, All Other 227 283 56 24.7 2.2Supervisors, Building and Grounds Cleanup and Maintenance Workers 409 510 101 24.7 2.2Roofers 343 427 84 24.5 2.2

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Rail Transportation Workers 82 102 20 24.4 2.2Social and Human Service Assistants 424 527 103 24.3 2.2

Landscaping and Groundskeeper Workers 1,454 1,806 352 24.2 2.2Gaming Dealers 592 735 143 24.2 2.2

Occupation

2004 2014 Change Percentage Change

Percentage Growth Rate

Extruding and Drawing Machine Setters, Operators 58 72 14 24.1 2.2Couriers and Messengers 127 157 30 23.6 2.1Market Research Analysts 161 199 38 23.6 2.1Receptionists and Information Clerks 1,021 1,262 241 23.6 2.1Community and Social Service Specialists, All Other 102 126 24 23.5 2.1Non-Farm Animal Caretakers 219 269 50 22.8 2.1Dental Hygienists 269 330 61 22.7 2.1Surveyors 88 108 20 22.7 1.7Animal Care and Service Workers 229 280 51 22.3 2Dental Assistants 526 643 117 22.2 2Medical Secretaries 1,057 1,292 235 22.2 2

Entertainment Attendants and Related Workers 1,204 1,471 267 22.2 2Dentists, General 122 149 27 22.1 2Transportation Workers, All Other 77 94 17 22.1 2Computer and Information Systems Managers 154 188 34 22.1 2Physical Therapist Aides 77 94 17 22.1 2Rehabilitation Counselors 722 881 159 22.0 2Amusement and Recreation Attendants 388 473 85 21.9 2Chiropractors 73 89 16 21.9 2Computer Support Specialists 580 707 127 21.9 2Social and Community Service Managers 64 78 14 21.9 2First-Line Supervisors/Managers of Personal Service Workers 281 342 61 21.7 2Architects, Except Landscape and Naval 107 130 23 21.5 2First-Line Supervisors/Managers of Housekeeping and Jan. Workers 228 277 49 21.5 2Other Healthcare Support Occupations 2,026 2,460 434 21.4 2Religious Workers, All Other 212 257 45 21.2 1.9Fiberglass Laminators and Fabricators 171 207 36 21.1 1.9Medical Assistants 445 539 94 21.1 1.9Physician Assistants 77 93 16 20.8 1.9

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Other Sales and Related Workers 1,248 1,506 258 20.7 1.9Drafters, Engineering, and Mapping Technicians 726 875 149 20.5 1.9Cooks, Fast Food 351 423 72 20.5 1.9

Occupation

2004 2014 Change Percentage Change

Percentage Growth Rate

Home Health Aides 425 512 87 20.5 1.9

Occupational and Physical Therapist Assistants and Aides 171 206 35 20.5 1.9Religious Workers 295 355 60 20.3 1.9Massage Therapists 369 444 75 20.3 1.9Helpers, Construction Trades 374 449 75 20.1 1.8

Supervisors, Personal Care and Service Workers 584 701 117 20.0 1.8Glaziers 90 108 18 20.0 1.8

Gaming and Sports Book Writers and Runners 90 108 18 20.0 1.8Law Clerks 50 60 10 20.0 1.8Medical and Public Health Social Workers 110 132 22 20.0 1.8Transportation, Storage, and Distribution Managers 55 66 11 20 1.8Recreation Workers 336 403 67 19.9 1.8Interviewers, Except Eligibility and Loan 287 344 57 19.9 1.8Community and Social Services Occupations 3,555 4,252 697 19.6 1.8Insulation Workers, Floor, Ceiling, and Wall 87 104 17 19.5 1.8Counselors, Social Workers, and Others 3,260 3,897 637 19.5 1.8File Clerks 261 312 51 19.5 1.8Hotel, Motel, and Resort Desk Clerks 262 313 51 19.5 1.8

Combined Food Preparation and Serving Workers, Inc 4,370 5,222 852 19.5 1.8Gaming Supervisors 195 233 38 19.5 1.8Tapers 139 166 27 19.4 1.8Physical Therapists 247 295 48 19.4 1.8Architects, Surveyors, and Cartographers 314 375 61 19.4 1.8Customer Service Representatives 1,825 2,179 354 19.4 1.8Social Scientists and Related Workers 960 1,145 185 19.3 1.8Painters, Transportation Equipment 208 248 40 19.2 1.8Helpers, Construction Trades, All Other 78 93 15 19.2 1.8Water Transportation Workers 52 62 10 19.2 1.8Medical Records and Health Information Technicians 229 273 44 19.2 1.8Cement Masons and Concrete 73 87 14 19.2 1.8

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FinishersLodging Managers 68 81 13 19.1 1.8Police, Fire, and Ambulance Dispatchers 115 137 22 19.1 1.8

Occupation

2004 2014 Change Percentage Change

Percentage Growth Rate

Gaming Surveillance. Officers and Gaming Investigators 126 150 24 19.0 1.8Other Construction and Related Workers 721 858 137 19.0 1.8Healthcare Support Occupations 3,812 4,534 722 18.9 1.7Drywall and Ceiling Tile Installers 164 195 31 18.9 1.7Family and General Practitioners 169 201 32 18.9 1.7

Healthcare Practitioners and Tech Workers, All Other 53 63 10 18.9 1.7Health Technologists and Technicians 2,828 3,361 533 18.8 1.7Network and Computer Systems Administrators 331 393 62 18.7 1.7Chefs and Head Cooks 129 153 24 18.6 1.7Sales Managers 113 134 21 18.6 1.7

Emergency Medical Technicians and Paramedics 144 171 27 18.8 1.7Public Relations 210 249 39 18.6 1.7Paralegals and Legal Assistants 261 309 48 18.4 1.7

Preschool Teachers, Except Special Education 273 323 50 18.3 1.7Advertising, Marketing, Promotions, Public Relations 210 249 39 18.6 1.7Cooks, Institution and Cafeteria 499 590 91 18.2 1.7Information and Record Clerks 6,098 7,209 1,111 18.2 1.7Diagnostic Medical Sonographers 55 65 10 18.2 1.7First-Line Supervisors/Managers of Transportation 292 345 53 18.2 1.7Financial Clerks 4,963 5,862 899 18.1 1.7Medical and Health Services Managers 177 209 32 18.1 1.7Zoologists and Wildlife Biologists 366 432 66 18.0 1.7

Healthcare Practitioners and Technical Occupations 7,460 8,800 1,340 18.0 1.7Helpers--Carpenters 123 145 22 17.9 1.7Media and Communication Workers 986 1,162 176 17.9 1.7Personal Appearance Workers 746 878 132 17.7 1.6

Health Diagnosing and Treating Practitioners 4,299 5,060 761 17.7 1.6Secretaries and Administrative 5,166 6,079 913 17.7 1.6

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AssistantsResidential Advisors 85 100 15 17.6 1.6Industrial Truck and Tractor Operators 1,084 1,275 191 17.6 1.6

Occupation 2004 2014 Change Percentage Change

Percentage Growth Rate

Grounds Maintenance Workers 1,900 2,235 335 17.6 1.6Loan Interviewers and Clerks 307 361 54 17.6 1.6Painters, Construction and Maintenance 881 1,036 155 17.6 1.6

Hairdressers, Hairstylists, and Cosmetologists 563 662 99 17.6 1.6

Other Office and Administrative Support Workers 7,122 8,375 1,253 17.6 1.6Barbers 171 201 30 17.5 1.6Loan Officers 365 429 64 17.5 1.6Occupational Therapists 131 154 23 17.6 1.6

Secretaries, Except Legal, Medical, and Executive 2,509 2,949 440 17.5 1.6

Billing and Posting Clerks and Machine Operators 628 738 110 17.5 1.6Hydrologists 63 74 11 17.5 1.6Personal Care and Service Occupations 8,426 9,896 1,470 17.4 1.6Management Analysts 569 668 99 17.4 1.6Licensed Practical and Licensed Vocational Nurses 718 843 125 17.4 1.6Arts, Design, Entertainment, Sports, and Media Occupations 2,588 3,038 450 17.4 1.6Licensed Practical and Licensed Vocational Nurses 718 843 125 17.4 1.6Supervisors, Transportation and Material Moving Workers 435 510 75 17.2 1.6Office and Administrative Support Occupations 28,865 33,834 4,969 17.2 1.6Radiological Technologists and Technicians 244 286 42 17.2 1.6

Janitors and Cleaners, Except Maids and Housekeeping 2,373 2,779 406 17.1 1.6Fire Fighters 240 281 41 17.1 1.6First-Line Supervisors/Managers of Police and Detectives 176 206 30 17.0 1.6Payroll and Timekeeping Clerks 200 234 34 17.0 1.6Tellers 561 656 95 16.9 1.6Database Administrators 71 83 12 16.9 1.6Sheet Metal Workers 237 277 40 16.9 1.6First-Line Supervisors/Managers, Fire Fighters and Prevention 77 90 13 16.9 1.6Dental Laboratory Technicians 77 90 13 16.9 1.6Sales and Related Workers, All Other 143 167 24 16.8 1.6

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Office Clerks, General 5,476 6,393 917 16.7 1.6Human Resources Assistants, Except Payroll and Timesheets 263 307 44 16.7 1.6

Occupation 2004 2014 Change Percentage Change

Percentage Growth Rate

Food Service Managers 162 189 27 16.7 1.6

Supervisors, Food Preparation and Serving Workers 870 1,015 145 16.7 1.6Fire Fighting and Prevention Workers 258 301 43 16.7 1.6Medical and Clinical Laboratory Technicians 132 154 22 16.7 1.6Slot Key Persons 108 126 18 16.7 1.6Court, Municipal, and License Clerks 535 624 89 16.6 1.6Supervisors, Office and Administrative Support Workers 1,673 1,949 276 16.5 1.5First-Line Supervisors/Managers of Off and Ad Supp Workers 1,673 1,949 276 16.5 1.5Legal Secretaries 364 424 60 16.5 1.5Food and Beverage Serving Workers 8,536 9,939 1,403 16.4 1.5

Entertainment Attendants and Related Workers, All Other 67 78 11 16.4 1.5

Dining Room and Cafeteria Attendants and Bartender 568 661 93 16.4 1.5

Food Servers, Non-restaurant 104 121 17 16.3 1.5First-Line Supervisors/Managers of Food Prep. 741 862 121 16.3 1.5Registered Nurses 2,559 2,977 418 16.3 1.5

Medical and Clinical Laboratory Technologists 147 171 24 16.3 1.5Computer Specialists, All Other 227 264 37 16.3 1.5Sales Representatives, Wholesale and Manufacturing 1,307 1,519 212 16.2 1.5Computer Operators 62 72 10 16.1 1.5Water and Liquid Waste Treatment Plant and System 112 130 18 16.1 1.5Bartenders 797 925 128 16.1 1.5Procurement Clerks 131 152 21 16.0 1.5Construction and Building Inspectors 150 174 24 16.0 1.5Plumbers, Pipefitters, and Steamfitters 238 276 38 16 1.5

Entertainers and Performers, Sports and Related Workers 792 918 126 15.9 1.5Human Resources Managers, All Other 63 73 10 15.9 1.5Lawyers 1,062 1,230 168 15.8 1.5

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Food Preparation and Serving Related Occupations 14,280 16,536 2,256 15.8 1.5

Occupation 2004 2014 Chan

ge Percentage Change

Percentage Growth Rate

Counter and Rental Clerks 1,021 1,182 161 15.8 1.5

Dispatchers, Except Police, Fire, and Ambulance 260 301 41 15.8 1.5Library Assistants, Clerical 216 250 34 15.7 1.5

Education, Training, and Library Workers, All Other 197 228 31 15.7 1.5Editors 70 81 11 15.7 1.5Medical Equipment Preparers 70 81 11 15.7 1.5Construction Occupations 10,099 11,684 1,585 15.7 1.5Security Guards 421 487 66 15.7 1.5

Nursing, Psychiatric, and Home Health Aides 1,615 1,868 253 15.7 1.5Respiratory Therapists 96 111 15 15.6 1.5

Vocational Education Teachers, Postsecondary 352 407 55 15.6 1.5Advertising Sales Agents 173 200 27 15.6 1.5

Bookkeeping, Accounting, and Auditing Clerks 2,744 3,172 428 15.6 1.5Training and Development Specialists 186 215 29 15.6 1.5Bus Drivers, Transit and Intercity 500 578 78 15.6 1.5Librarians, Curators, and Archivists 417 482 65 15.6 1.5

Social Scientists and Related Workers, All Other 77 89 12 15.6 1.5Financial Managers 431 498 67 15.5 1.5Construction Trades Workers 7,886 9,109 1,223 15.5 1.5

Computer, Automated Teller, and Office Machine Rep 129 149 20 15.5 1.5Speech-Language Pathologists 142 164 22 15.5 1.5Coaches and Scouts 652 753 101 15.5 1.5Clinical, Counseling, and School Psychologists 226 261 35 15.5 1.5

Based on new employment opportunities of 100 or more per organization in 2002. Those occupations highlighted in brown indicate the largest number of employment opportunities.

Slow Growing Occupations

Occupational TitlesEstimated

Employment 2002

Growth RateEstimated

Mean Wage 2003

Fallers 185 -0.4% *N/AFarm Workers, Farm & Ranch Animals 108 -0.4% *N/ALogging Equipment Operators 886 -0.3% $39,750Log Graders & Scalers 334 -0.1% *N/AFurnace, Kiln, Oven, Drier & Kettle Operators & Tenders 126 0.1% *N/AMachine Feeders & Offbearers 893 0.1% *N/A

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Floral Designers 186 0.2% $24,090Woodworkers, All Other 120 0.4% *N/AMillwrights 170 0.4% *N/ASawing Machine Setters, Operators & Tenders, Wood 461 0.5% *N/A

THE CHANGING AND FUTURE DEMOGRAPHICS OF THE FIVE COUNTIES

Grays Harbor County Summary

42

The unemployment rate in the Aberdeen Labor Market Area (Grays Harbor County) rose to 9.0 % with the release of the January preliminary resident labor force and employment numbers. The 9.0 % figure included 28,780 county residents employed, with 2,840 counted as out of work. In December, the county unemployment rate was 7.8 %, with the January 2006 figure at 7.9 %. The statewide rate for January 2006 stood at 5.9 %, a jump from 5.0 % in December, and the 5.5 % rate of last January.

While unemployment is rising, total non-farm jobs are in decline. The January preliminary total of 24,350 was 110 fewer paychecks than December. The Goods Producing sector lost 30 jobs over the month as the Service sector side slipped by an additional 80. In Goods employment, the Construction grouping lost 20 jobs, while Manufacturing cut an additional 10. The job gains experienced by Government (+50), and All Other Services (+10), were washed away by a seasonal cut of 110 jobs in Retail Trade. Also posting over-the-month job losses were Information and Financial Activities (-30).

Over the year, non-farm employment grew at 1.2 %, or roughly half of the statewide average (+2.5 %). The 280 more jobs this January than last were courtesy of the Services Providing sector (+430), as the Goods Producing side cutback to the tune of 150 jobs. The Construction grouping actually rose by 90 jobs over the year, but it was the Manufacturing side that took the largest hit, skidding by 240. Helping reverse some of the losses in Goods were All Other Services (+150), Trade, Transportation and Utilities (+140), and Government (+120). In March 2007, the labor force included 31,870 individuals, 298570 individuals were employed, the unemployment figure was 2,300 and the total unemployment rate was 8.2%. Source: Statistics provided by the Labor Market and Economic Analysis Branch of Washington State Employment Security Department. Pacific

Mountain Consortium Labor Area Summary, January 2007Jim Vleming, Regional Labor Economist

Labor Market Information for Grays Harbor County

Not Seasonally Adjusted/*UPDATED WITH ***QCEW DATA: September 2006 As of March 2007

        Change

  Preliminary Revised Revised Dec-06 Jan-06 Jan-06

Employment by Place of Residence Jan-07 Dec-06 Jan-06 Jan-07 Jan-07 Jan-07%

   Civilian Labor Force 31,620 31,260 31,230 360 390 1.2%

      Resident Employment 28,780 28,840 28,770 -60 10 0.0%

      Unemployment 2,840 2,430 2,460 410 380 15.4%

      Unemployment Rate 9.0 7.8 7.9 1.2 1.1

Employment by Place of Work (**NAICS Industry Titles)

TOTAL NONFARM 1/ 24,350 24,460 24,070 -110 280 1.2%

TOTAL PRIVATE 17,820 17,970 17,650 -150 170 1.0%

GOODS PRODUCING 5,740 5,770 5,890 -30 -150 -2.5%

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    NAT. RESOURCES, MINING, and CONSTRUCTION 2,120 2,140 2,030 -20 90 4.4%

    MANUFACTURING 3,620 3,630 3,860 -10 -240 -6.2%

SERVICES PROVIDING 18,610 18,690 18,180 -80 430 2.4%

    TRADE, TRANSPORTATION, and UTILITIES 4,390 4,490 4,250 -100 140 3.3%

        Wholesale Trade 850 850 820 0 30 3.7%

        Retail Trade 2,900 3,010 2,790 -110 110 3.9%

        Transportation, Warehousing and Utilities 640 640 640 0 0 0.0%

    INFORMATION and FINANCIAL ACTIVITIES 1,140 1,170 1,110 -30 30 2.7%

    ALL OTHER SERVICES 6,550 6,540 6,400 10 150 2.3%

    GOVERNMENT 6,540 6,490 6,420 50 120 1.9%

        Federal Government 250 240 240 10 10 4.2%

        State and Local Government 6,290 6,240 6,180 50 110 1.8%

             Educational Services 2,660 2,580 2,630 80 30 1.1%

Workers in Labor/Management Disputes 0 0 0 0 0 0

**Washington EDS QEW = Quarterly Census of Employment and Wages                          

Grays Harbor County Overview Economic conditions in Grays Harbor County have been difficult in the recent past. The area has long been dependent on a natural resource base for the strength of its industrial sector. That base was significantly eroded through the 1990's. Restructuring and modernization of the timber industry, coupled with environmental concerns and mandated protection of endangered species, has caused serious cutbacks in employment over the last two decades. In 1992, the unemployment rate in Grays Harbor reached 15.2%; twice that of the state’s unemployment rate at the time. After this economic low period, the county began a continuous, but slow, economic recovery through the later part of the 1990's and into the 2000’s despite the negative economic impact of September 11, 2001. Since 2003, the economy has continued to improve. In January of 2006 the unemployment rate in Grays Harbor was

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7.6% reduced to an annual rate of 6.9%. Throughout 2006 Grays Harbor has experienced some difficulties. Weyerhaeuser has closed both their Aberdeen large log mills in December of 2005 (affecting 88 workers) and their Cosmopolis Pulp Mill in September of 2006 (affecting 211 workers). Several other closers and lay offs have impacted the economy through 2006 and 2007. As of March 2007, the unemployment rate was 8.2 %.

The WeyCo large log mill in Aberdeen closed in 2007 impacting 97 workers. Additional layoffs have occurred at the small log mill. The Office Max facility located at the Satsop Development Park closed and the Simpson Door Factory in McCleary had significant layoffs. It is hoped that the recent announcement that Weyerhaeuser has sold the Cosmopolis Pulp Mill will help offset these downward trends. This may replace/save a significant number of the jobs recently lost.

A prime example of this economic recovery and continuing growth in Grays Harbor County is the Satsop Development Park. Up until recently, it was a moth-balled power plant that was maintained by a preservation program and finally designated to be dismantled. A dedicated group of individuals saved the site. In 1996 legislation was passed turning over ownership of the Satsop site to a local authority for the purpose of developing it. Since that time, the Satsop Development Park has become home to over forty businesses employing 400+ workers. The success at Satsop is very likely to continue. Invenergy has recently announced that it is restarting construction on the former Duke Energy gas plant at the located within the Satsop Industrial Park. The CT project is formally referred to as a Combined Cycle Combustion Turbine plant.  This will create 350 immediate construction jobs for at least a year. It will have around 30 permanent jobs when operational, sometime around 15 months from now. The CEO of Satsop Development Park states, “There are four areas we need to pursue now. We must first take advantage of what we already have here (in Grays Harbor County); such as Satsop, rail, the port, and our tourism and commercial businesses. We need regulatory assistance and streamlining in order to create more jobs. Funding for infrastructure improvements is needed, and regardless of what happens to the mills we need better workforce training.”

Grays Harbor will be investing $5 million in the completion/renovation of the massive Turbine and associated buildings at Satsop Development Park, in 2007, courtesy of a Job Development Fund grant, which will allow Brown-Minneapolis Tank Co., (BMT, formerly known as Reliable Steel) to stay in business and expand.  The company has been on the Olympia waterfront for approximately 84 years but their lease is expiring in early 2008. They want to retain their workforce, their contracts and their business in the northwest. The Gray’s Harbor EDC is hopeful the Turbine Building will be their new home. This will give them room to double their workforce and expand their production of steel tanks (water, fuel etc.).  This is an example of regional economic development.  Their employees commute from all over southwest Washington, driving to the Olympia facility.  Their drive to Satsop will be similar to what they do now, and the Satsop location allows them to stay in the region and keep their well-trained workforce.  They want to expand from 35-70 or more employees and these facilities will allow them to do that. The Park is planning for the following improvements:

Turbine Building Improvements ($6.5 million) to accommodate the relocation of a steel fabrication company. The project will retain 35 family wage jobs and $10 million in annual sales, create 35 new family wage jobs and create additional space for similar industries.

Feasibility study ($50,000) and expansion of water and sewer infrastructure ($380,000) to the West Park area. This improvement will allow development of 200 acres generating a possible 500 new jobs.

Warehouse Distribution Expansion ($4.3 million) to construct an additional 63,000 square foot facility for lease to Simpson Door, an existing tenant. Simpson Door currently employs

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458 people at its facility in McCleary. Expansion at the Satsop site will result in the creation of an additional 30 jobs.

Construction of a manufacturing building ($4 million) for ReKlaim Technologies, a waste tire recycling facility. The project will provide 40 family wage jobs and provide $4.6 million of private investment in the facility.

The Grays Harbor Public Development Authority was created in 1998 to take ownership of the Satsop Development Park. It is providing unique employee training and preparation opportunities. Their mission is to provide job and economic opportunities for Grays Harbor County and the surrounding five county region. Since the park is presently “highly underutilized”, The PCA is able to offer extremely varied training opportunities in facilities that are from the “real world” but have not been in service. Training opportunities include Confined Space Training, Scaffold Erection within Systems Skills, Grading, Forklift operation, Trenching, and other outdoor activities including High Angle Ascent and Rescue Training.

The Port of Grays Harbor is the only deep water port on the West Coast of Washington. For this, and other reasons it has a significant opportunity to expand its operations. The transport time from other ports is two days shorter than to other deep water ports in the state. While they presently have insufficient rail capacity to significantly increase the amount of goods brought through the port, improvements in the rail system would make expansion of the port facilities possible. The Port has the capacity to stimulate economic growth and employment opportunities in the region if transportation and shipping facilities were enhanced. The port is presently shipping commodities other than timber for the first time in its history.

In 2004, a large investment in the expansion of existing businesses (Guesthouse Suites, Westport Shipyard) and the siting of new business (AG Processing Inc. $15 million bulk loading facility, Home Depot $25 million dollar facility, Renal Care Group Northwest kidney dialysis center, Masco Petroleum, Suburban Propane). This surge of growth in the Port of Grays Harbor’s industrial area played a major role in the Port’s decision to readdress their growth strategies. The year 2005 became a year of strategic planning. They have been implementing these strategies over the past year. Port accomplishments that are result of their strategies include:

Completion of the Port Industrial Master Plan and the Port Industrial Area Business Strategy Plan. These plans will allow for the uninterrupted flow of Port activities while accommodating future growth.

Completion of the Port Industrial Road Strategic Analysis. This plan identifies growth impacts on and needed infrastructure upgrades to the Port’s freight and rail corridor.

Completion of 28th Street Landing Concept Design for Parking Improvements. Completion of the 5-year property appraisal which identified that fair market value and

land values of Port properties have increased since 2000. Siting of Imperium Renewables Inc. a biodiesel production facility. This facility will be

the largest of its kind in the United States with a capable annual capacity of 100 million gallons. This $40 million private investment will generate approximately 250 construction jobs and 50 direct family wage jobs during operation.

The Westport Marina (not including upland development) was home to 283 tenants in 2005 including 184 commercial fishing vessels and 35 charter fishing vessels.

Grays Harbor EDC has identified commercial, residential, industrial, tourism and marine development as the five sectors creating the primary economic foundation of Grays Harbor County’s future economic success and diversity. Their economy is continuing to expand as the variety of the businesses, industries

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and communities making up these five sectors, expand. This diverse economy will help the community thrive when one sector has a downturn. Grays Harbor had a banner (some would say historic) year in 2005 when all five sectors grew. The county gained 3,500 jobs from 2001 to 2005 and experienced its lowest unemployment rate in decades at 6.5%. There were five times more jobs created than direct and indirect jobs predicted would be lost through mill closures. The county credited much of its re-employment efforts and its success in reducing the impact of the mill closures to the tremendous efforts of Pacific Mountain Workforce Development Council, WorkSource Grays Harbor and Grays Harbor Community College.

Westport Shipyard, the country’s largest yacht builder, has plans for a $5 million dollar expansion at their Port of Grays Harbor facility. Sierra Pacific’s $40,000,000 dimensional lumber mill is now in operation with 210 employees and plans started to build an adjacent $40,000,000 stud mill and an additional 150 employees.

Grays Harbor Community Hospital is adding a new $14,000,000 emergency facility which will be able to accommodate 15,000 patients more per year. A new Aberdeen High School is under construction, and Grays Harbor College is growing with $32,200,000 worth of expansion, including instructional and vocational buildings and a new day care facility.

Grays Harbor Transit Authority (GHTA) was awarded over $3 million in grant funds to purchase new buses and vans for its fleet and to maintain much needed service to the North and South Beach areas of the county. They are also participating in the City of Aberdeen’s downtown revitalization project with a major redesign of their downtown station. Plans call for the removal of three derelict buildings, grading and paving of the site, a new transit facility complete with lockers and bike racks, expanded paratransit van access, internal rerouting of busses for increased safety, and lighting and landscaping.

The local economic development council and the chamber of commerce are focusing on business retention and attraction as high priorities. In addition, tourism is being touted as a provider of jobs. Expansion in the trade and services sectors is continuing. The lumber and wood products will continue to be the mainstay in the area. While the industry has declined, it has done so after being well establish over many years and will consequently continue to be a major employer providing good jobs at good wages. The following development and expansions reflects the ongoing diversification of the county’s economy:

Home Depot Aberdeen Box store has moved into Grays Harbor with a $25.0 million facility employing 135 workers.

Sierra Pacific Lumber Mill recently completed a $45.0 million facility that employs 210 workers.

Westport Shipyard Mfg. Expansion at $2.3 million to employ 485 more workers.

Grays Harbor Library has renovated their facility for $6.0 million.

A new retail development on Marvin Road has begun which will contain 400,000 square feet of retail space including a Home Depot and Costco store.

Ramada Inn Motel and Water Park has committed $10.0 million in their hospitality enterprise and hired another 30 employees.

Elma Hotel and Suites Microtel Development has invested $3 million in their new hotel. They now employ 125 employees.

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Ocean Spray Cranberries is spending $36 million on their existing Cranberry facility and now employ 125.

The following are planned developments or expansions in progress in Grays Harbor County:

Name Cost of Development

Ocean Shores convention center

20.0 million

Grays Harbor Hospital Emergency Dept.

17.0 million

Grays Harbor College-Replace old buildings

7.0 million

Invenergy, Inc.- Power generation

300.0 million

Quinault Indian Nation Q. -Pride expansion

.2 million 30

Islander Hotel- Retail and Condos

27.4 million

Aberdeen High School- New High School

20+ million

Grays Harbor Community Hospital

15 million

Quinault Indian Nation Ocean Shores

Marina and ferry

$145.0 million

Hogan’s Corner Commercial development

$330.0 million

Harbor Resort Westport Hotel and Condos

In addition, the energy industry sector is expanding. Duke Energy is building a new turbine electrical power-generating plant and is in the permitting process for yet another. Northwest Pipeline, a subsidiary of the Williams Company, has laid 50 miles of 20-inch gas pipeline from Vale to Satsop to fire Duke’s gas turbines. Satsop also has a direct connection to the BPA power grid.

Over the past year the combined efforts of the economic development team and the job creation team have: supported local business and industry by actively focusing on capacity building; worked towards the identification and implementation of infrastructure improvements to support local and regional economies; responded to requests from companies that are interested in locating in Grays Harbor. Tourism is a growth industry drawing over 4 million people to Grays Harbor in 2005. Grays Harbor Tourism has initiated a strong TV advertising campaign and website visits to their site have increased by 48%. Hotel motel taxes demonstrate a 10% annual growth rate. Retail sales support this upward trend. Between 2003 and 2004 retail sales increased by 5.1%. Between 2004 to 2005 retail sales county-wide increased by 14.8%.

Tourism and retirement housing continues to grow. Construction and new developments are on the rise. Local banks have more than one billion dollars on deposit. The county expects 2007 to be another growth year: Ocean Shores and the North Shore are booming in retail development and tourism. East County is exploding with residential development. Retail Sales in the Tri-cities is on the rise. Developers will break

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ground on a new 40,000 sq. ft. spec building this spring to accommodate the needs of new and expanding small-to medium-size manufacturers, courtesy of a CERB loan and dollars from the county’s .08 fund. All signs show that Grays Harbor County is in a growth mode.

Grays Harbor Transit and Coastal community Action Program are collaborating to help low-wage workers keep their jobs by providing adequate transportation to and from work. According to the Grays Harbor County Workforce Study Analysis, Grays Harbor County and the City of Aberdeen are both experiencing a population growth above the average in the state. There are over 15 new residential developments in the greater Aberdeen area and county. Ocean Shores is the second fastest growing community in the state. Westport by the Sea, a condominium resort, is a new development that consists of 96 units and a new phase has just been permitted for another 99 units. Total investment in this project will be $80 million. Seabrook, north of Ocean Shores, has just broken ground on a 400 unit, single and multi-family residential development. It is planned to accommodate approximately over 1,200 people. A local development firm built a new multi-million dollar commercial/retail building in Aberdeen called Harbor Place. As a result, the real estate market is booming with record sales. Quarterly sales of residential homes have increased 23% since 2002.

Sierra Pacific, Inc. recently opened a new lumber mill and now employs over 215 people. Plans are underway for an expansion which will add another 150 workers. Ag Processing, Inc has partnered with the Port of Grays Harbor to build a new bulk commodities terminal. As of January 2007, the AG Processing, Inc. has increased rail and ship movements into Grays Harbor. Warm Company Textiles Mfg. has opened a new manufacturing facility in Elma and will be expanding their operation by 300%. It has completed an expansion of 36,000 square feet. They employ 30 people. Olympic Gateway Mall has been renovating and expanding services to accommodate additional national retail businesses. Grays Harbor College is renovating and expanding its campus with a total investment of $32 million. In addition, the Grays Harbor College is building a new satellite campus in Ilwaco, a $1.1 million dollar project. The expansion of services, organizations and industries; point to increased growth and economic opportunities for the residents of Grays Harbor.

Additionally, Imperium Renewables broke ground on a 100M gallon biodiesel plant investing $72 million with scheduled production to start the summer of 2007. Paneltech is expanding its technology based secondary wood products operations. The PUD partnered with Grays Harbor Paper to expand its co-generation electric production with a combination of $7.5M in loans and grants, Westport Shipyards continues expansion and is approaching 1000 employees (the County’s largest employer). Ocean Spray Cranberries is expanding with a new Craisons production line. They are nearly doubling employment to approximately 125. Ocean Gold Seafoods is expanding its fish processing and cold storage. Ocean Gold will be able to support 400 full-time employees. Ocean Protein in its second year of operation nearly tripled its production while solving its odor issues. Ocean Protein uses primarily Pacific whiting and sardine wastes supplied by fish processing plants. OP processes those wastes into fish meal, fish bones, and fish oil. The OP plant has two separate production lines. They operate only during the season for these fish species -beginning in May and ending in early October.

“As the largest county along Washington’s coast, Grays Harbor lacks one thing Puget Sound and other urban areas have—congestion. Not coincidently, the community lacks one more thing common in other parts of the state—a recession,” according to a recent article in Washington Business Magazine. Both are key economic issues that will support economic and community growth.

Grays Harbor Industry Employment Projections

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Forestry/Logging This is a major industry in Grays Harbor County. Economic and political trends have negatively impacted this sector since the 1990s. The long anticipated "Wall of Wood" has happened and has had a positive impact on the industry although technological advances within the industry are changing the requirements for those seeking employment. The availability of second and third growth timber has led to some modest growth. There is a potential for continued modest growth.

Lumber/Wood Products This is a dominant part of the economy. Some of the largest employers in Grays Harbor are involved in lumber and wood products. After two years of very positive growth in all areas of the economy, Weyerhaeuser announced the closure of two of their 6 manufacturing plants in Grays Harbor. One, a large log lumber mill, closed the week of December 19, 2005 which affected 97 people. The second, a specialized pulp mill, was closed in 2006. This affected 245 people. Had this happened 5 years prior when the economy was less diversified, it would have been a terrible blow to Grays Harbor County and the cities that hosted these plants. However, other sectors helped soften the employment and economic impact on the 342 people laid off and their families. Weyerhaeuser announced, in March 2007, that they had found a buyer for the pulp mill. This will help the economy tremendously. Sierra Pacific invested $45 million to build a new sawmill outside Aberdeen, milling raw logs into dimensional lumber. Sierra Pacific’s new lumber mill employs over 215 people after an investment of over $40 million. While the Weyerhaeuser large log lumber mill closed and 80 plus people were laid off in 2006, there were over 100 lumber mill jobs available at other companies within a 45 minute drive. Boise, Inc. completed a facility in the Satsop Development Park which was soon bought by Office Max. Office Max has since closed the facility. Grays Harbor Paper now employs more than 250 workers. Simpson Door Plant manufactures doors and is one of the largest employers in the county. It employed 508 employees, but has reduced its workforce in recent months. There is a good potential for growth in this industry.

Paper and Allied Products Paper production in Grays Harbor has remained somewhat constant. Gains in productivity have enabled output to increase while at the same time holding employment relatively constant. In 2006, Weyerhaeuser closed its Cosmopolis Pulp Mill affecting 240 employees. The community is more optimistic about the future of this industry in Grays Harbor now that the mill has been sold to another manufacturer. There is potential for maintained employment.

Services The services industry is the second largest sector in Grays Harbor. This parallels the national trend as the United States moves from a goods-producing economy to a service producing economy. The Services sector includes health-related services, legal services, retail and government services, and hospitality related work opportunities. As such, it provides more employment than any other sector. Approximately 3,000 workers are now providing services of one type or another to residents and visitors to Grays Harbor County. There is a strong likelihood of continued growth.

Wholesale and Retail Trade This sector has overtaken Services as the largest sector of employment in Grays Harbor. The largest employment comes from retail trade and food stores, with eating and drinking establishments a distant second. This sector got a significant boost in 1994 when Wal-Mart opened a large center in Aberdeen. Since Wal-Mart’s opening near

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the Gateway mall in 1994, it has consistently been one of the top volume sales per square foot stores in Washington and the United States. The store employs well over 200 workers. It has also altered consumer shopping patterns, drawing consumers into the store to buy consumer products that previously traveled to Olympia. Since 2002, Grays Harbor has experienced a 20% increase in retail trade. Olympic Gateway Mall on the east side of Aberdeen has gone from an empty parking lot, to a state-of-the-art, modern mall, with national companies such as Ross, Michael’s, Ace Hardware, and Staples. In addition, Home Depot has opened a 110,000 square foot store in Aberdeen. They invested nearly $25 million in their facility and employ over 110 people. Five Star Motors is currently expanding their operations. This expansion will cost in excess of $1 million. They currently have sales of over $65 million per year. Brownfield Promotions, Inc. has updated and expanded the Grays Harbor Fairgrounds Raceway to operate sprint car contests that include the World of Outlaws, a nationally recognized event. The investment in this project has exceeded $350,000 with a payroll of over 89 people. There is a strong likelihood for continued growth.

Agriculture/Aquaculture Grays Harbor had exactly what we needed to expand the Pacific Rim market opportunities for our growers,” said Glen Heithritter of Ag Processing Inc. (AGP). As the largest cooperative soybean processing company in the world, AGP is building a new receiving and bulk-loading facility. It has partnered with the Port of Grays Harbor to build a new bulk Commodities Terminal that takes products directly from rail cars, measure, weigh, and transport it into waiting ships. Commodities such as soybean, meal, corn gluten, beet pulp pellets and other bulk agriculture products will move through the Port. AGP Inc., the grain shipper has just shipped their millionth ton of grain. This is historically significant because the Port has been a timber port. This million dollar project has increased rail and ship movement into Grays Harbor. As of January 2007, they had shipped their one millionth ton of grain. This is significant in terms of the economy of the port. It has historically been a timber rather than an agricultural port. The Port of Grays Harbor and PanelTech are opening markets and expanding as well.

Agriculture is concentrated primarily in the two industries of cranberry production and dairy farming in Grays Harbor County. However, a number of nurseries are also flourishing and expanding. Briggs Nursery, the largest grower of rhododendrons in the world, produces more than one million ornamental plants annually; Satsop Bulb Farm raises 3 million daffodil bulbs annually; B & C Farms produces 365 varieties of gladiolas, and Dan's Dahlias grows over 300 varieties of dahlias. Dairy farming has suffered dramatically in recent years with many farmers going out of business due to stringent environmental concerns. A sub-area of agriculture that has potential for growth is aquaculture. Oystering and clamming also play a major role in the economy. There is a strong likelihood of expansion in this sector.

Food/Kindred Products Virtually this entire industry is concerned with the processing of cranberries. The recent past has been difficult on the industry. Significant layoffs in the bottling sector, record harvests and deflated prices have negatively impacted employment. In 1995, Ocean Spray saw layoffs due to the transfer of their bottling operation from Grays Harbor County to Nevada.

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The production of sauces and packaging of fresh berries has been the primary role of the Markam facility over the past ten years. During 2007, the corporation was selected by their corporate office to be the next site to be expanded to produce and package their Craisin Product. This $36 million investment will nearly double the workforce at the Markham facility and provide excellent High Wage/High Skills family wage jobs. The industry is improving and employment is stabilizing. Profits to the growers are increasing. The industry does, however, need to replace higher skilled workers due to pending retirements. Ocean Gold in Westport is expanding its facilities. Ocean Gold will be able to support 400 full-time. Moderate growth at best.

Tourism/Hospitality Growth in the tourism industry will undoubtedly continue to bolster the economy in Grays Harbor in the years ahead. More than 5,000,000 cars visited the County during 2005. Approximately 6 million people visit Grays Harbor every year. The City of Aberdeen is well into a downtown revitalization project. New traffic lights have been installed and bulb-outs completed along with artwork installation and landscaping. The city is seeking the necessary funding to complete the sidewalk portion of the project. A three story, 300 vehicle public parking structure is in the planning stages. A multi-million dollar luxury hotel renovation complete with retail space and restaurants is also in the planning stages.

A coordinated and professional effort has been underway to promote tourism in the County and this effort has netted positive results. Grays Harbor, Westport and Ocean Shores are striving to improve their market share in this industry. Ocean Shores was built in the early 1960s to attract today’s beach goers. Ten new or significantly renovated motels and resorts were completed in the last decade in Ocean Shores, Moclips and Pacific Beach. Today, the Shilo Resort near the Ocean Shores Convention Center is the hub of beach activities. It attracts thousands of people. When tourism throughout the state and nation was down in 2000, Westport’s motel-hotel tax collections increased by 17 % despite the national downturn.

Westport Marina is the largest coastal marina in the Pacific Northwest and home to Washington State's largest charter fishing fleet. This full-service Marina offers moorage space for 650 charter, commercial, and sport fishing vessels, plus a wide range of pleasure craft. Aberdeen has been successful at attracting a stop for a cruise line and is reaping the benefits of increased tourist dollars. The Links at Half Moon Bay project in Westport is in the final phases of permitting. This Scottish links-style golf course, condo, hotel, and restaurant resort development brings tourists to the region. Grays Harbor has experienced a boost in this industry because of the Lewis and Clark Bicentennial signature events planned in November of 2005. In addition, the national park designation in Ilwacco is bringing in tourists from around the United States. The City of Aberdeen has built a beautiful sports park on State Route 105. The Quinault Beach Resort and Casino in Ocean Shores contributed to a tourist count that exceeded 4 million visitors in 2004. This is the first time in the region’s history that it has exceeded 3 million. Ocean Shores is building a new Convention Center complex to handle the increase of visitors. The Tourism and Hospitality Industry is a $160 million industry in Grays Harbor area and poised to get larger. This industry has strong potential for continued growth.

Health Services Health Services have grown at a faster than average rate in recent years and is expected to continue. The aging of the population and the workforce during the forecast period will result in above average growth in health services. Grays Harbor Community

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Hospital will soon be building a new and larger Emergency Department, investing over $6 million. Grays Harbor Community Hospital is a major employer in the county with 629 employees. The Hospital, a Grays Harbor Economic Development project, cost $17 million to renovate. We are embarking on another $8 million modernization project at the hospital in 2007. One of the few factors that will continue to limit growth in this sector is the ongoing shortage of skilled health care providers to meet the growing need for RNs, LPNs and other health-related occupations. Forecast is for above average growth.

Construction There are plans to continue to expand. The County has experienced a 20 % increase in retail sales growth since 2002. The development out at Pacific Beach (called Seabrook), at Westport (several massive condo projects), and the housing boom in east Grays Harbor all indicate a turnaround. There is new residential development throughout the County. There has been a steady increase in development on the Harbor. Real estate in McCleary, Elma, Montesano, Pacific Beach and Westport; Industrial growth at Satsop, Junction City, Hoquiam, and Westport; Retail in Aberdeen, Westport, and Ocean Shores; and Hospitality in Ocean Shores, Hogans Corner, and Westport have created a boon of construction related employment opportunities. All in all, between 2003 and 2006, over one billion dollars were invested in development on the Harbor. The present downturn in housing starts may have an impact on this industry. Moderate growth is expected.

Marine Manufacturing Boat building was an important industry in the early history of Grays Harbor and again plays a leading part in the Harbor’s diversification. Westport Shipyard, Inc. produce seven or eight yachts per year, and sell the 112,130 and 164-footers for up to $31 million each. They have dedicated 75 people to the payroll, who build 98-foot yachts. As the largest builder of multi-million dollar luxury yachts in America, it is located in Westport, Hoquiam and Port Angeles. In April 2006, Westport Shipyard announced that it planned to begin construction on a state-of-the-art lamination building at its current Westport facility. This is a part of its ongoing future expansion plans in Grays Harbor County. Westport Shipyard currently employs 894 employees working at its three manufacturing facilities – Westport, Hoquiam and Port Angeles. There are 430 located at its Westport facility and 139 at its Hoquiam facility. It employs over 100 employees who work at more than one location. As they continue to expand, their payroll will also expand.

The shipyard is continuing to increase employment to meet production demands. They have partnered with community colleges and trade schools including Grays Harbor College, Centralia College and the Pacific Mountain Workforce Development Council (PMWDC) to ensure that talent development to meet the specialized workforce needs for this specialized industry can be met. This coalition offers innovative training programs for yacht finish carpenters, yacht marine carpenters, electricians, and welders and other highly skilled workers. More than 100 family-wage jobs have been filled as a result of these talent development opportunities during 2006. It is currently (2007) recruiting skilled workers within the manufacturing trades including electricians, carpenters, laminators, welders, and plumbers. They also have opportunities in Production Management and Marine Mechanical and Electrical Design. With the purchase of additional product lines and a strong economy, the future looks good for this sector. The expansion of the Westport Ship Yard to Hoquiam for their 112-foot line has resulted in further increases in employment.

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Presently, the growth at the shipyard is limited only by the availability of a workforce with the appropriate specialized skills.

Catamarans Northwest employs more than 35 men and women building large custom made “cats” for fishing, tour companies and leisure. Another 35 employees at Little Hoquiam Boatyard are currently building a 95-foot charter boat and an 80-foot sword-fishing boat. Cape Elizabeth Yachts Inc., in Hoquiam, builds 95-foot Motorsailers. Livingston Boats, one of the tenants at the Satsop Development Park, employs 10-15 people building small watercraft. Strong growth is expected.

Corrections Stafford Creek Corrections built a 1900 bed facility on State Route 105. The facility employs over 600 people that drive by the South Shore mall on a daily basis. The Stafford Creek Corrections facility opened early in the year 2000. Many workers come from the local area and others commute or have relocated to work at the facility. The $120 million construction project was completed in late 2003.Continued growth is expected.

Government and Education Grays Harbor College is renovating and expanding the size of their facilities to accommodate a higher enrollment and provide more state-of-the-art teaching facilities. The college is planning to build a new science building and a new daycare center on the main campus. Grays Harbor College employs 385 individuals. This number will increase as the college expands. Grays Harbor County employs 443. Aberdeen School District in Grays Harbor employs 379 staff. The City of Aberdeen employs 176. Hoquiam School District employs 285. Quinault Indian Nation employs 320. Government is the number one employment sector within Grays Harbor County’s economy.

Largest Organizations (All Sectors) based upon employment

Company City Employees Product/ Service

West Port Shipyard Grays Harbor 863 BoatsWeyerhaeuser Grays Harbor 807 ForestryGrays Harbor Community Hospital

Grays Harbor 629 Healthcare

Simpson Door Plant Grays Harbor 508 DoorsGrays Harbor County Grays Harbor 443 GovernmentGrays Harbor College Grays Harbor 385 EducationAberdeen School District Grays Harbor 379 EducationQuinault Beach Resort Grays Harbor 319 HospitalityHoquiam School District Grays Harbor 285 EducationWal-Mart Grays Harbor 229 RetailGrays Harbor Paper Grays Harbor 214 Paper ProductsBriggs Nursery Grays Harbor 183 FarmingPUD Grays Harbor 170 UtilitiesSafeway Grays Harbor 160 RetailSwanson Foods Grays Harbor 145 RetailOcean Spray Grayland 125 Food ProductsFive Star Dearlerships Grays Harbor 125 Retail

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Washington Crab Producers Grays Harbor 120 FishingQuigg Bros. Grays Harbor 120 Construction

Source: Grays Harbor EDC 2006

Major employers in the County based upon the Comprehensive Economic Development Strategy for the Columbia-Pacific:

GRAYS HARBOR COUNTY OCCUPATIONAL

EMPLOYMENT PROFILEMale Femal

eTotal

Employed Civilians 16 years and over 14,933

12,623

27,556

Management, professional & related 3,097 3,587 6,684

Management , business, financial operations 1,543 1,122 2,66

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5Management (except farmers & farm managers

1,002 698 1,780

Farmers & farm managers 215 44 259Business & financial operations 246 380 626

Business operations specialists 115 183 298Financial specialists 131 197 328

Professional & related 1,554 2,465 4,019

Computer & mathematical 110 94 204Architecture & engineering 256 54 310

Architects, surveyors, cartographers & engineers

150 20 170

Drafters, engineering & mapping technicians

106 34 140

Life, physical & social science 182 57 239Community & social services 210 207 417Legal 80 89 169Education, training & library 401 1,125 1,52

6Arts, design, entertainment, sports & media

91 116 206

Healthcare practitioners & technical 224 723 947Health diagnosing, treating practitioners & technical

166 458 624

Health technologists & technicians 58 265 323Service Occupations 2,007 3,433 5,44

0Healthcare support 103 693 796Protective service 514 138 893

Firefighting, prevention & law enforcement workers including supervisors

388 58 446

Other protective services including supervisors

126 80 206

Food preparation & serving related 571 1,093 1,664

Building & grounds cleaning & maintenance 578 556 1,134

Personal care & service 241 953 1,194

Sales & office 1,745 4,541 6,286

Sales & related 1,097 1,656 2,753

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Office & administrative support 648 2,885 3,533

Farming, fishing & forestry 1,171 118 1,289

Construction, extraction & maintenance 3,034 165 3,199

Construction & extraction 1,728 92 1,820

Supervisors, construction & extraction workers

163 7 170

Construction trade workers 1,537 85 1,622

Extraction workers 28 0 28Installation, maintenance & repair 1,306 73 1,37

9Production, transportation & material moving

3,079 779 4,658

Production occupations 1,849 368 2,217

Transportation & material moving 2,030 411 2,441

Supervisors, transportation & material moving workers

48 14 62

Aircraft & traffic control 21 0 21Motor vehicle operators 947 231 1,17

8Rail, water & other transportation 116 27 143Material moving workers 898 139 1,03

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GRAYS HARBOR COUNTY INDUSTRY EMPLOYMENT PROFILE

Male Female

Total

Employed Civilians 16 years and over 14,933

12,623

27,556

Agriculture, forestry, fishing, hunting & mining

1,782 219 2,001

Agriculture, forestry, fishing & hunting 1,743 213 1,956

Mining 39 6 45Construction 1,876 243 2,11

9Manufacturing 2,878 559 3,43

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7Wholesale Trade 550 172 722Retail Trade 1,552 2,020 3,57

2Transportation, warehousing & utilities 1,003 312 1,31

5Transportation & warehousing 931 202 1,03

3Utilities 172 110 282

Information 184 227 411Finance, insurance, real estate & rental & leasing

369 750 1,119

Finance & insurance 171 465 636Real estate & rental & leasing 198 205 483

Professionals, scientific, management, administration & waste management servers

517 612 1,129

Professional, scientific & technical service 202 290 492Management of companies & enterprises 0 0 0Administrative, support, waste management service

315 322 637

Educational, health & social services 1,254 4,209 5,463

Educational services 749 1,628 2,377

Health care & social assistance 505 2,581 3,086

Arts, entertainment, recreation, accommodation & food servers

1,199 1,522 2,721

Arts, entertainment & recreation 265 301 266Accommodation & food services 934 1,221 2,15

5Other services (except public administration)

811 764 1,575

Public administration 958 1,014 1,972

GRAYS HARBOR COUNTY DEMOGRAPHIC PROFILE

Grays Harbor Demographics for 2005 and Projections for 2010

Population (2005)

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  Total Percentage2005 Population 70,148

Population (2010)  Total Percentage2010 Population 73,085 1.0%

Sex (2005)  Total PercentageMale 35,995 51.3%Female 34,153 48.7%

Sex (2010)  Total PercentageMale 38,574 52.8%Female 34,511 47.2%

Age Distribution (2005)  Total Percentage0-4 4,002 5.7%5-9 4,062 5.8%10-19 9,773 13.9%20-29 9,520 13.6%30-39 8,594 12.3%40-49 10,175 14.5%50-59 9,586 13.7%60-64 3,669 5.2%65+ 10,767 15.3%

Age Distribution (2010)  Total Percentage0-4 4,347 5.9%5-9 4,105 5.6%10-19 8,982 12.3%20-29 10,629 14.5%30-39 8,792 12.0%40-49 9,606 13.1%50-59 10,497 14.4%60-64 4,415 6.0%65+ 11,712 16.0%

Race Distribution (2005)  Total PercentageWhite 62,289 88.8%

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Black 235 0.3%American Indian 3,042 4.3%Asian 947 1.4%Pacific Islander 70 0.1%Other 1,485 2.1%Multi Ethnic 2,080 3.0%Hispanic 4,282 6.1%

Race Distribution (2010)  Total PercentageWhite 65,255 89.3%Black 246 0.3%American Indian 2,905 4.0%Asian 1,068 1.5%Pacific Islander 67 0.1%Other 1,788 2.4%Multi Ethnic 1,756 2.4%Hispanic 5,303 7.3%

2005 Education Attainment  Total Percentage

Population Age 25+ 47,155< Grade 9 2,641 5.6%Grade 9-12 6,431 13.6%High School 15,692 33.3%Some College 11,816 25.1%Assoc Degree 3,641 7.7%Bach Degree 4,382 9.3%Grad Degree 2,552 5.4%

2010 Education Attainment  Total PercentagePopulation Age 25+ 50,344< Grade 9 2,642 5.2%Grades 9-12 6,440 12.8%High School 17,039 33.8%Some College 11,806 23.5%Assoc Degree 4,076 8.1%Bach Degree 5,332 10.6%Grad Degree 3,009 6.0%

2005 Labor Force Status  Total Percentage

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Labor Force 32,835Employed 29,800 90.8%Unemployed 2,973 9.1% In Armed Forces 62

N Not in Labor Force 23,614 24.0%2010 Labor Force Status

  Total PercentageLabor Force 34,732Employed 31,526 90.8% Unemployed 3,139 9.0% In Armed Forces 67Not In Labor Force 24,760 37.0% Source: US Census Bureau, 2005

2005 Size of Household  Total Percentage1 Person 7,972 28.2%2 Person 10,243 36.2%3 Person 4,276 15.1%4 Person 3,575 12.6%5 Person 1,458 5.1%6+ Person 552 1.9%

2010 Size of Household  Total Percentage1 Person 8,706 29.5%2 Person 10,799 36.6%3 Person 4,402 14.9%4 Person 3,706 12.6%5 Person 1,319 4.5%6+ Person 457 1.5%

> means “less than”2005 Household Income Distribution

  Total Percentage

<$10 K 3,369 11.9%$10-$20K 4,323 15.3%$20-$30K 3,814 13.5%$30-$40K 3,703 13.1%$40-$50K 3,321 11.7%$50-$60K 2,465 8.7%$60-$75K 2,735 9.7%$75-$100K 2,527 8.9%> $100K 2,062 7.3%

2010 Household Income Distribution  Total Percentage

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<$10 K 3,367 11.4%$10-$20K 4,046 13.7%$20-$30K 3,701 12.5%$30-$40K 3,353 11.4%$40-$50K 3,285 11.1%$50-$60K 2,708 9.2%$60-$75K 2,780 9.4%$75-$100K 2,978 10.1%> $100K 3,310 11.2%

© 2004 Washington State Business and Project Development, Department of Community, Trade & Economic Development128 10th Avenue SW, Olympia WA 98504-2525 (360) 725-4100  

Grays Harbor Representative Occupations

Occupation Employees EntryWage

ExperiencedWage

MeanWage

Accountants and Auditors 1,369 $21.06 $47.25 $38.52Administrative Services Managers

124 $34.25 $43.30 $40.29

Computer Operators 928 $9.83 $14.57 $12.99Computer Programmers 546 $17.57 $31.76 $27.03Computer Software Engineers, Applications

101 $28.53 $42.36 $37.75

Computer Software Engineers, Systems Software

84 $22.39 $39.79 $33.98

Computer Support Specialists 449 $12.49 $21.07 $18.21Customer Service Representatives

1,295 $8.96 $13.50 $11.98

Electrical and Electronic Engineering Technicians

177 $20.95 $33.57 $29.36

Executive Secretaries and Administrative Assistants

732 $14.21 $21.79 $19.26

Financial Managers 334 $29.41 $36.13 $33.89First-Line Supervisors/Managers of Office & Administrative Support Workers

1,358 $14.48 $26.40 $22.43

First-Line Supervisors/Managers of Production and Operating Workers

636 $18.42 $35.43 $29.77

Industrial Truck and Tractor Operators

636 $11.95 $19.20 $16.78

Laborers and Freight, Stock, and Material Movers, Hand

2,145 $8.95 $13.89 $12.25

Machinists 289 $11.68 $17.60 $15.63Maintenance and Repair Workers, General

1,476 $11.12 $18.66 $16.14

Mechanical Engineers 262 $28.51 $40.53 $36.53Operating Engineers & Other Construction Equipment Operators

560 $15.77 $24.28 $21.44

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Packers and Packagers, Hand 668 $8.10 $11.72 $10.52Secretaries, Except Legal, Medical, and Executive

1,650 $10.22 $16.99 $14.47

Shipping, Receiving, and Traffic Clerks

706 $9.22 $16.77 $14.26

Source: Employment Security Department- www.workforceexplorer.comOccupational Wage Data, November 2006

CITY/TOWN POPULATION AS OF 2003Aberdee

nCosmopolis Elma Hoquiam McCleary Montesan

oOakville Ocean

ShoresWestport

16,320

1,630 3,060 8,855 1,420 3,345 680 4,065 2,130

2002 AVERAGE MONTHLY EMPLOYMENT & TOTAL WAGES IN COVERED EMPLOYMENT

Industry Employers Average Number of Employees

Percentage of Total

Wages Paid Percentage of Total

Agriculture, Forestry, Fishing 194 492 2.13 $11,895,932 1.81Mining * * * * *Construction 235 1,091 4.72 36,655,385 5.58Manufacturing 200 3,988 17.25 161,672,863 24.62Trans., Communication, Utilities

120 688 2.98 22,553,419 3.43

Wholesale Trade * * * * *Retail Trade 446 4,443 19.21 77,309,171 11.77Finance, Insurance, Real Estate

158 865 3.74 25,423,739 3.87

Services 1,361 4,783 20.69 104,633,359 15.93Government 135 6,159 26.64 197,018,619 30.00Other 72 614 2.66 19,582,031 2.98

Total 2,921 23,123

100.00 $656,744,518

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An entry of "*" indicates data suppressed for confidentiality. The sum of the "*" entries equals the entry for "Other."

STATE PUBLIC ASSISTANCE PROGRAMS FOR FISCAL 2003Program Total Grants Monthly

AveragePercentage Population

Served

Rank by Percentage Population.

Temporary Assistance to Needy Families (TANF)

$5,453,189

2,420 3.52 7

Diversion 53,466 13 0.02 18Consolidated Emergency Assistance Program (CEAP)

740 0 0.00 10

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Refugee Assistance - - - -Food Stamps 7,226,820 7,246 10.53 9Medical Assistance $50,612,2

8015,830 23.01 8

2000 Commuting Patterns of Grays Harbor

Residents Commuting to Workplace Number of WorkersGrays Harbor County, WA 23,616Thurston County, WA 1,595Mason County, WA 337King County, WA 310Pacific County, WA 281Lewis County, WA 180Kitsap County, WA 19

Nonresidents Commuting to Grays Harbor Number of Workers as of 2000Thurston County, WA 1,595Pacific County, WA 545Mason County, WA 408Lewis County, WA 147King County, WA 106Jefferson County, WA 11

Pacific County SummaryPacific County numbers suffered the same effects of the winter blues as most other counties felt. The unemployment rate went up and the number of non-farm jobs dropped December and January.

Non-farm employment in the county totaled 5,860 jobs, down 60 from December. With the holiday season behind us, Retail Trade employment cut 20 jobs, as All Other Services (-40), and Construction (-10), lost payroll to the changing year. The plus side was that the January preliminary total was 30 ahead of last January’s. The 30 over-the-year gain represents half of one %, not much, but still in positive territory. Statewide employment growth over the year checked in at 2.5 %. While Government (+70) and All Other Services (+30) were going in the right direction, a 90 job loss in Manufacturing interrupted the party, creating the anemic over-the-year job growth factor for the county.

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Of the 9,000 member labor force counted in January, 8,270 were working as 730 looked for jobs. The end result was a January unemployment rate of 8.1 %, up from December’s 6.9 and last January’s 7.2. Statewide the January unemployment rate rested at 5.9 %. The total labor force for March 2007 was 9,200. Of this total, 8,570 were employed and 630 were unemployed. The unemployment rate for Pacific County for March 2007 was 7.9 %.

Source: Pacific Mountain Consortium Labor Area Summary, January 2007 (Continued). Jim Vleming, Regional Labor Economist-- 3/8/2007 http://www.workforceexplorer.com/article.asp?PAGEID=&SUBID=&ARTICLEID=7876&SEGMENTID=5

Labor Market Information for Pacific County

Not Seasonally Adjusted/*UPDATED WITH ***QCEW DATA: September 2006 Prepared in March, 2007

        Change

  Preliminary Revised Revised Dec-06 Jan-06 Jan-06

Employment by Place of Residence Jan-07 Dec-06 Jan-06 Jan-07 Jan-07 Jan-07%

   Civilian Labor Force 9,000 8,940 9,030 60 -30 -0.3%

      Resident Employment 8,720 8,320 8,380 400 340 4.1%

      Unemployment 730 620 650 110 80 12.3%

      Unemployment Rate 8.1 6.9 7.2 1.2 0.9

Employment by Place of Work (**NAICS Industry Titles)

TOTAL NONFARM 1/ 5,860 5,920 5,830 -60 30 0.5%

TOTAL PRIVATE 3,900 3,970 3,940 -70 -40 -1.0%

GOODS PRODUCING 1,300 1,310 1,380 -10 -80 -5.8%

    NAT. RESOURCES, MINING, and CONSTRUCTION 390 400 390 -10 0 0.0%

    MANUFACTURING 910 910 1,000 0 -90 -9.0%

SERVICES PROVIDING 4,560 4,610 4,450 -50 110 2.5%

    TRADE, TRANSPORTATION, and UTILITIES 690 710 680 -20 10 1.5%

        Wholesale Trade 40 40 30 0 10 33.3%

        Retail Trade 610 630 600 -20 10 1.7%

        Transportation, Warehousing and Utilities 40 40 40 0 0 0.0%

    INFORMATION and FINANCIAL ACTIVITIES 260 260 250 0 10 4.0%

    ALL OTHER SERVICES 1,660 1,700 1,630 -40 30 1.8%

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    GOVERNMENT 1,960 1,940 1,890 20 70 3.7%

Workers in Labor/Management Disputes 0 0 0 0 0 0

*Prepared by the Labor Market and Economic Analysis Branch using a Quarterly Benchmark process

Jim Vleming, Regional Labor EconomistPO Box 9046, Mail Stop: 46000

Olympia, WA  98507-9046Phone: (360) 438-4821FAX: (360) 438-4846jvleming@esd.wa.gov

Pacific County Overview Economic conditions in Pacific County have been difficult in the recent past. The area has long been dependent on a natural resource base for the strength of its economy and employment and that base was significantly eroded through the 1990's. Restructuring and modernization of the timber industry coupled with environmental concerns and mandated protection of endangered species has caused serious cutbacks in employment. Commercial fishing is a significant component of the local economy along with fish processing, fruits, logging contracting, and tourism. More than 80% of the county is non-federal timberland. Since 1990 Pacific County and, in particular, the Willapa Harbor local economy, has been in a state of flux:

Economic activity in the region remains heavily dependent on Willapa's natural resource based wealth.

Average sales in most of the major sectors have flattened or declined since 1992, except for Aquaculture, fisheries and residential Construction/Contracting trade.

Over 25% of the jobs in Pacific County are in government, followed closely by manufacturing (23%) and retail trades (23%).

The gap between Washington State's and Pacific County's per capita income is widening. The cost of living has stabilized, but is still greater than the standard increase in wages.

Since 2003, the economy has continued to improve. There has been a steady decline in the unemployment rate from 9.1% since 2001. The unemployment rate in March of 2007 was 7.9%. At present, small businesses represent 94 % of the businesses owned and operated in Pacific County. The largest %age of the family wage earners within the small business sector work for employers with 1-4 employees. A total of 707 individual employees work for a company this size.

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Much of the County’s economy and employment is seasonal. Therefore, the size of these companies may vary greatly throughout the year. This seasonal employment cycle has a substantial impact on the county’s economic vitality. Efforts are underway to diversify the economic base of Pacific County. The local Economic Development Council and the Chamber of Commerce are focusing their efforts and attention on business retention. In addition, tourism is being encouraged as an excellent provider of jobs. Expansion in the trade and services sectors is continuing. Pacific County’s natural resource based industries; lumber and wood products, seafood processing and cranberries, continue to be the economic mainstay of the area. While these industries have declined over the years, they continue to be the major employers providing year-round jobs. The county’s four municipalities, four ports, and county government believe in developing and supporting a strong community and economic infrastructure that sustains the existing businesses while encouraging entrepreneurial business start-ups. Public and private partners share the goal of becoming a self-sustaining county within the natural resources venue while optimizing the business environment. Pacific County is an active and involved networking community supported by the EDC.

As the major shellfish production and processing center on the Washington coast, Pacific County’s economy includes a substantial marine resources component. A strategic plan has been created to reestablish the salmon population that has diminished over the years. Dungeness crab, Pacific pink shrimp, albacore tuna, and bottomfish production are the major components of the commercial fishery, generating over $25 million in personal income, and over 1000 jobs to the county’s economy. Many fishermen also participate in the distant water fisheries in Alaska, adding an additional $21 million in county personal income contributions.

The Economic Development Council, community colleges and Workforce Development Council are collaborating to address skilled labor shortages in the wood products and other industries. With the increase in available timber and technological advances in the milling process, a higher skilled workforce is needed. This shortage of a highly skilled labor force is having a negative impact on all aspects of the manufacturing sector in Pacific County. Industry partners are exploring ways to address these shortages. To promote local economic development, Pacific County relies upon regional organizations. Cluster development efforts continue. Pacific County EDC and Grays Harbor College are collaborating to train hospitality employees, and work continues on finding a solution to the environmental problem of crab and shrimp shell disposal. The Port of Willapa Harbor’s extensive planning work is creating several major developments. The cities and the ports continue to improve their infrastructures with street improvements, sewer upgrades and dredging. To meet residential and business needs. The Public Utilities District continues to expand fiber into the county providing many businesses with high-speed access to communication. New investments into the cities and county exceeded $12 million.

There is growing evidence that Pacific county has improved its economic base through development of its infrastructure. Between 2001 and 2004, the local hospitals and the Port of Ilwaco expanded (see completed development projects chart). The town of Ilwaco was once a booming fishing community, but the downturn of the fishing industry in the 1990’s devastated Port revenues. In order to survive, the Port developed an Economic Development Strategy. An integral part of the strategy was to create a thriving boat repair yard. This development plan was threatened by the Department of Ecology’s regulations regarding existing toxins. Toxic paints were being washed into the bay from the boatyard’s pressure wash system. Following discussions with the DOE, the Forest Service has provided funding for a closed loop system that filters the water. Grays Harbor Community College has built a new satellite campus in Ilwaco which was a $1.1 million dollar project along with its satellite campus in

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Raymond. The expansion of services, organizations and industries throughout the county has provided increased economic growth and employment opportunities in Pacific County. Completed Expansion and Development Projects:

Name Cost of Development

Willapa Harbor Hospital $15 million dollars

Ocean Beach Hospital Part of the above investment Shoalwater Tribe- Medical Center $1.2 million Port of Ilwaco Ongoing Improvements Small Business Incubator Facility &

Retail Strip Mall$1,900,000

Jessie’s Ilwaco Fish $400,000 Gray’s Harbor Community College-

New Satellite Campus $1.1 million

The population of Pacific County is on the rise with approximately 21,500 year-round residents spread throughout small and diverse cities and towns including Chinook, Ilwaco, Seaview, Long Beach, Klipsan Beach, Ocean Park, Oysterville, Surfside, Nahcotta, Naselle, Bay Center, Menlo, Lebam, Tokeland, Grayland, South Bend and Raymond.

Pacific County Industry Employment Projections

Government Government provides Pacific County’s primary employment and economic base. Over 25% of the jobs in Pacific County are in government. Federal government employs 60 individuals, state government employs 286, and local government employs 1,521. There are a total of 1,867 government employees working in Pacific County.

Forestry/Logging While this is still a major industry in Pacific County, it has declined over the past decade. There are approximately twelve industrial timber companies that own and harvest timber is Pacific County. The industry experienced a loss in jobs with a 60% decrease in wages between 1995 and 2005. Located in the town of Raymond, Weyerhaeuser is the largest present logger and manufacturer of forest products. It employs 230 individuals. The availability of second and third growth timber has led to some modest growth in this industry.

Lumber/Wood Products This industry and its products have a dominant impact on the economy in Pacific County. As of 1996, there were 42 businesses registered in the lumber and wood products industry. The majority of these businesses are located in northern Pacific County. Today, there are two major employers producing lumber and wood products. The larger of these two, WeyerhaeuserWeyerhaeuser employs 230 people. A leasing timber company, Seaport Lumber in Raymond, has become successful through stronger financial backing and identifying a different market than prior companies that closed. Originally Seaport Lumber employed 70 workers. It is expecting to bring on an additional shift.

Services The services industry is the second largest sector in Pacific County after government. Pacific County parallels the national trend as the United States moves from a

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goods-producing based economy to a service-producing economy. By the end of 1999, the sector had grown 47 %. This produced an increase of 840 service related jobs between 1995 and 2000. Despite this turnaround, however, the industry experienced a small loss of jobs between 1995 and 2005. There is a strong likelihood of continued growth.

Wholesale and Retail Trade This sector is the third largest in Pacific County. Within this industry the largest employment comes from retail trade and food stores. Eating and drinking establishments rank a distant second. This sector is responsible for over 85% of the businesses in Pacific County. This sector provided employment for over 720 workers in 2005. Between 1995 and 2005 this sector grew by approximately 19 %. Pacific County continues to see a rise in the retail trade. There is a strong likelihood of continued growth.

Agriculture/Aquaculture Agriculture is concentrated primarily in the two industries of cranberry production and dairy farming. Dairy farming has suffered dramatically in recent years with many farmers going out of business due to stringent environmental concerns. A sub-area of agriculture that has potential for growth is aquaculture. Pacific County continues to produce the vast majority of the state’s oyster and clam product in Willapa Bay. This plays a major role in the county’s economy. Fish and shellfish processing and retail sales of seafood are a key product and income source. Eight seafood processing plants and fifteen seafood retailers provide seafood products to area distributors and consumers. Many export their products.

The commercial fishing industry is primarily based in Ilwaco and Chinook. It includes over 200 vessels and 1,300 fishermen with annual landings exceeding 21 million pounds of fish and shellfish with an ex-vessel value of nearly $15 million. In addition, Shoalwater Bay Oyster Company is one of only two tribal programs and eight growers statewide, to qualify for export of live oysters to Japan. Pacific County is home to the largest shellfish culture industry on the west coast, with nearly 50 million pounds of oysters and clams produced each year, with a wholesale value exceeding $10 million. Public awareness of this industry is coordinated through aquaculture bulletins from twelve western states and shellfish displays which educate coastal residents on the oyster industry in Grays Harbor and Willapa Bay. The industry generates over $12 million in personal income, and provides nearly 600 jobs to the local economy annually. Poor quality products cost the seafood industry in Pacific County over a half million dollars annually in lost sales and wastage. Shellfish growers are facing a number of challenges dealing with improving culture efficiency, product quality, and shellfish survival, managing for marine ecosystem processes and bio-toxins, increasing markets and profitability, and dealing with marine habitat issues related to aquatic nuisance species and the Endangered Species Act. The WSU Extension program is working with producers to remedy this situation. Eight seafood processing plants and fifteen seafood retailers provide seafood products to area distributors and consumers. Continued success in oysters and clamming could signal some expansion in this industry.

Food/Kindred Products The food industry is concerned with the processing of cranberries and cranberry juice. Pacific County’s approximate 750 acres of cranberry bogs are primarily leased by Ocean Spray. Ocean Spray ships its raw materials to its manufacturing facility in Henderson, Nevada. This has increased product output without increasing costs. Today, the industry is improving and employment is stabilizing as profits to the growers increase. Fishing has experienced severe set backs beginning in the mid-1980s as a result of

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fishing curtailments, declines in salmon and ground fish, and other regulatory issues, all the result of over-fishing prior to that time. Mismanagement of the ground fish fishery led to the over-harvest of several rockfish species, prompting drastic harvest reductions in ground fish generally. Slight increases I the last three years are a sign of improving conditions in the industry. Catches are still well below historical averages and increases are uneven. Slow growth at best in the short term.

Tourism/Hospitality Growth in the tourism industry will undoubtedly continue to bolster the economy in the area in the years ahead. A coordinated and professional effort has been underway to promote tourism in Pacific county. This focus has netted positive results. The population of the Long Beach Peninsula swells with visitors during the busy summer months. Pacific County has a natural beauty that draws tourism to the region. It is estimated that the travel and tourism impact on Pacific County in 2005 was $104 million. This can be attributed to the efforts of the tourist industry. Potential visitors became aware of Pacific County as an excellent location to visit due to activities such as the Lewis and Clark Bicentennial signature events in 2005. In addition, Fort Columbus and Fort Canby in Ilwaco have been designated as national parks. This designation opens the door to national marketing efforts. Literally dozens of annual and biannual festivals take place all over Pacific County, including the International Kite Festival, Cranberrian Fair, Oyster Stampede, Willapa Festival, Swiss Schwingfest, Oktoberfest, Finn Fest, Loyalty Days, Annual NPRA Rodeo, Bluegrass Festival, Festival in the Park and the Pacific County Fair.

The Columbia River, Willapa Bay and the Pacific Ocean, as well as many lakes and rivers; provide Pacific County with abundant recreational opportunities. Cape Disappointment State Park, Leadbetter Point State Park, Willapa Wildlife Refuge, Long Island, Bruceport Park, Bush Park, Fort Columbia and many city parks are just a few. America's newest National Park, the Lewis & Clark National and State Historical Park is a bi-state (Oregon-Washington). Other facilities include three golf courses, twelve tennis courts and innumerable maintained trails, including the Long Beach Peninsula's Discovery Trail.

The charter boat industry in Ilwaco includes over thirty vessels, offering sportsfishing and whalewatching trips for local residents and outside visitors. The Tourism and Hospitality Industry employed over 959 individuals in 2005 and generated over $10 million in wages. It is poised to become a more import sector in Pacific County’s economic base. This industry has strong potential for continued growth.

Health Services Health Services have grown at a faster than average rate in recent years. This trend is expected to continue. Between 1995 and 2005 this sector experienced an increase of approximately 64 % in wages. The aging of the population and the workforce during the forecast period will result in above average growth in health services. Pacific County is home to two hospitals, Ocean Beach Hospital in Ilwaco and Willapa Harbor Hospital in South Bend. Both hospitals have responded to the increased need by expanding their facilities and employment opportunities.

Multiple clinic locations offer the services of six doctors and several specialists with limited local practice. Seven dentists practice within the city limits of Long Beach, Raymond and Ocean Park. In addition, numerous chiropractors, massage therapists and physical therapy facilities are available. There are three nursing home and/or retirement facilities with a total bed

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capacity of more than 240. A county-wide ambulance service is available and there are eight pharmacies throughout the area. Without talent development and capacity building this industry’s growth will be limited. There is a shortage of qualified health care providers in the county as well as the state. Forecast for this industry is for above average growth.

Marine Manufacturing Pedigree Cats, located in Raymond, specializes in building custom, luxurious multihulls; power catamarans, sail catamarans and trimarans, with many amenities included as standard features.  Pedigree Cats is the custom builder in the United States using a skilled labor force with proven building materials.  They offer more than 30 different catamaran models ranging from 50' to 150' and they offer top designers for our customers to work with in designing their ultimate catamaran.  They build one boat at a time. Jackpot Industries and other service companies located in the southern region of the county provide repair and retrofit services for boats of all types.

Largest Employers in Pacific County (All Sectors) based upon Employment

Company LocationEmployee

s Product/ Service

Weyerhaeuser Company Raymond 210 Forest ProductsPacific County South Bend 210 GovernmentCoast Seafoods South Bend 181 MarineJessie's Ilwaco Fish Ilwaco 159 MarineOcean Beach Hospital Ilwaco 154 HealthcareNaselle Youth Camp Naselle 130 Judicial Service Willapa Harbor Hospital South Bend 112 Healthcare

South Bend School District South Bend 101 EducationDennis Company Raymond 98 RetailRaymond School District Raymond 95 EducationShoalwater Bay Casino Tokeland 93 Entertainment

Dungeness Development Company

South Bend 80 Marine

Seaport Lumber Raymond 70 Forest ProductsShoalwater Tribe Tokeland 71 ForestBell Buoy Crab Co. Inc 69 Food processor PUD No. 2 Raymond 53 Government/UtilityJolly Rogers 50 Food processor

Okies Sentry 48 Retail

Nelson Crab, Inc. 43 Food processorSource: Pacific County EDC 2006 and the Comprehensive Economic Development Strategy for the Columbia-Pacific Region, 2006

PACIFIC COUNTY OCCUPATIONAL EMPLOYMENT PROFILE

Male Female TotalEmployed Civilians 16 years and over 4,149 3,840 7,989

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Management, professional & related 935 1,194 2,129Management , business, financial operations 457 367 824

Management (except farmers & farm managers 298 236 534Farmers & farm managers 113 11 124Business & financial operations 46 120 166

Business operations specialists 34 68 102Financial specialists 12 57 64

Professional & related 478 827 1,305Computer & mathematical 25 8 33Architecture & engineering 63 5 68

Architects, surveyors, cartographers & engineers 39 2 41Drafters, engineering & mapping technicians 24 3 27

Life, physical & social science 49 8 57Community & social services 61 46 107Legal 6 25 31Education, training & library 127 419 546Arts, design, entertainment, sports & media 55 102 157Healthcare practitioners & technical 92 214 306

Health diagnosing, treating practitioners & technical 73 149 222Health technologists & technicians 19 65 84

Service Occupations 661 1,057 1,718Healthcare support 27 205 232Protective service 167 41 208

Firefighting, prevention & law enforcement workers includiing supervisors

103 28 131

Other protective services including supervisors 64 13 77Food preparation & serving related 185 364 549Building & grounds cleaning & maintenance 230 163 393Personal care & service 52 284 336

Sales & office 403 1,233 1,636Sales & related 282 393 675Office & administrative support 121 840 969

Farming, fishing & forestry 428 34 462Construction, extraction & maintenance 792 30 822

Construction & extraction 494 24 518Supervisors, construction & extraction workers 39 0 39Construction trade workers 455 24 479Extraction workers 0 0 0

Installation, maintenance & repair 298 6 304Production, transportation & material moving 930 292 1,222

Production occupations 385 182 567Transportation & material moving 545 110 655

Supervisors, transportation & material moving workers 20 3 23Aircraft & traffic control 5 0 5Motor vehicle operators 221 71 292Rail, water & other transportation 77 3 80Material moving workers 222 33 255

PACIFIC COUNTY INDUSTRY EMPLOYMENT

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PROFILE

Male Female Total

Employed Civilians 16 years and over 4,149 3,840 7,989

Agriculture, forestry, fishing, hunting & mining 616 47 663

Agriculture, forestry, fishing & hunting 616 47 663

Mining 0 0 0

Construction 508 37 545

Manufacturing 631 158 789

Wholesale Trade 139 12 151

Retail Trade 281 516 797

Transportation, warehousing & utilities 247 113 360

Transportation & warehousing 166 97 263

Utilities 81 16 97

Information 82 102 184

Finance, insurance, real estate & rental & leasing 73 226 799

Finance & insurance 29 128 157

Real estate & rental & leasing 44 98 142

Professional, scientific, management, administration & waste management services

247 213 460

Professional, scientific & technical service 79 132 211

Management of companies & enterprises 0 0 0

Administrative, support, waste management service 168 81 249

Educational, health & social services 374 1325 1,699

Educational services 202 597 799

Health care & social assistance 172 728 900

Arts, entertainment, recreation, accommodation & food servers

450 559 1,009

Arts, entertainment & recreation 124 82 206

Accommodation & food services 326 477 803

Other services (except public administration) 204 275 479

Public administration 297 257 554

PACIFIC COUNTY DEMOGRAPHIC PROFILE

Pacific County Demographics for 2005 and Projections for 2010

Population (2005)  Total Percentage2005 Population 21,260

Population (2010)

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  Total Percentage 2010 Population 21,576 1.0%

Sex (2005)  Total Percentage Male 10,475 49.3%Female 10,785 50.7%

Sex (2010)  Total Percentage Male 10,555 48.9%Female 11,021 51.1%

Age Distribution (2005)  Total Percentage 0-4 887 4.2%5-9 1,000 4.7%10-19 2,702 12.7%20-29 2,368 11.1%30-39 2,000 9.4%40-49 2,829 13.3%50-59 3,119 14.7%60-64 1,460 6.9%65+ 4,895 23.0%

Age Distribution (2010)  Total Percentage 0-4 871 4.0%5-9 925 4.3%10-19 2,348 10.9%20-29 2,933 13.6%30-39 2,064 9.6%40-49 2,430 11.3%50-59 3,269 15.2%60-64 1,505 7.0%65+ 5,231 24.2%

Race Distribution (2005)  Total Percentage White 19,305 90.8%Black 42 0.2%American Indian 484 2.3%Asian 480 2.3%Pacific Islander 17 0.1%Other 368 1.7%

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Multi-Ethnic 564 2.7%Hispanic 1,226 5.8%

Race Distribution (2010)  Total Percentage White 19,653 91.1%Black 42 0.2%American Indian 449 2.1%Asian 517 2.4%Pacific Islander 16 0.1%Other 385 1.8%Multi-Ethnic 514 2.4%Hispanic 1,410 6.5%

2005 Labor Force Status  Total Percentage Labor Force 9,109Employed 8,396 92.2%Unemployed 653 7.2%In Armed Forces 60Not In Labor Force 8,744

2010 Labor Force Status  Total Percentage Labor Force 9,428Employed 8,693 92.2%Unemployed 673 7.1%In Armed Forces 62Not In Labor Force 9,052

2005 Education Attainment  Total Percentage Population Age 25+ 15,332< Grade 9 1,000 6.5%Grade 9-12 2,263 14.8%High School 4,684 30.6%Some College 3,801 24.8%Assoc Degree 916 6.0%Bach Degree 1,627 10.6%Grad Degree 1,041 6.8%

2010 Education Attainment  Total Percentage Population Age 25+ 15,899< Grade 9 968 6.1%

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Grades 9-12 2,199 13.8%High School 4,945 31.1%Some College 3,688 23.2%Assoc Degree 1,001 6.3%Bach Degree 1,913 12.0%Grad Degree 1,185 7.5%

2005 Household Income Distribution  Total Percentage <$10,000 1,237 12.4%$10-$20,000 1,721 17.2%$20-$30,000 1,499 15.0%$30-$40,000 1,388 13.9%$40-$50,000 1,188 11.9%$50-$60,000 850 8.5%$60-$75,000 808 8.1%$75-$100,000 706 7.1%> $100,000 612 6.1%

2010 Household Income Distribution  Total Percentage <$10,000 1,276 12.0%$10-$20,000 1,593 14.9%$20-$30,000 1,581 14.8%$30-$40,000 1,325 12.4%$40-$50,000 1,093 10.2%$50-$60,000 1,095 10.3%$60-$75,000 877 8.2%$75-$100,000 842 7.9%> $100,000 993 9.3%

2005 Size of Household  Total Percentage 1 Person 3,096 30.9%2 Person 4,169 41.7%3 Person 1,225 12.2%4 Person 938 9.4%5 Person 374 3.7%6+ Person 152 1.5%

2010 Size of Household  Total Percentage 1 Person 3,444 32.3%2 Person 4,462 41.8%3 Person 1,275 11.9%

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4 Person 989 9.3%5 Person 344 3.2%6+ Person 129 1.2%

Pacific County Representative Occupations

OccupationEmploye

es Entry Wage

ExperiencedWage

MeanWage

Accountants and Auditors 1,369 $21.06 $47.25 $38.52Administrative Services Managers

124 $34.25 $43.30 $40.29

Computer Operators 928 $9.83 $14.57 $12.99Computer Programmers 546 $17.57 $31.76 $27.03Computer Software Engineers, Applications

101 $28.53 $42.36 $37.75

Computer Software Engineers, Systems Software

84 $22.39 $39.79 $33.98

Computer Support Specialists

449 $12.49 $21.07 $18.21

Customer Service Representatives

1,295 $8.96 $13.50 $11.98

Electrical and Electronic Engineering Technicians

177 $20.95 $33.57 $29.36

Executive Secretaries and Administrative Assistants

732 $14.21 $21.79 $19.26

Financial Managers 334 $29.41 $36.13 $33.89First-Line Supervisors/Managers of Office & Administrative Support Workers

1,358 $14.48 $26.40 $22.43

Industrial Truck and Tractor Operators

636 $11.95 $19.20 $16.78

Laborers and Freight, Stock, and Material Movers, Hand

2,145 $8.95 $13.89 $12.25

Machinists 289 $11.68 $17.60 $15.63Maintenance and Repair Workers, General

1,476 $11.12 $18.66 $16.14

Mechanical Engineers 69 $20.23 $36.45 $31.04Operating Engineers & Other Construction Equipment Operators

560 $15.77 $24.28 $21.44

Packers and Packagers, Hand

668 $11.95 $19.20 $16.78

Secretaries, Except Legal, Medical, and Executive

1,650 $10.22 $16.99 $14.74

Shipping, Receiving, and Traffic Clerks

706 $9.22 $16.77 $14.26

Source: Employment Security Department- www.workforceexplorer.comOccupational Wage Data, November 2006

Source: Office of Financial Management, November 2006 www.ofm.wa.gov

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CITY/TOWN POPULATION AS OF 2003Ilwaco Long Beach Raymond South Bend940 1,345 2,960 1,775

2002 AVERAGE MONTHLY EMPLOYMENT & TOTAL WAGES IN COVERED EMPLOYMENT

Industry Employers Average Percentage

of Employees

Percentage of Total

Wages Paid Percentage of Total

Agriculture, Forestry, Fishing 119 403 6.73 $8,712,510 6.38Mining 4 33 0.55 880,862 0.64Construction 75 187 3.12 3,973,937 2.91Manufacturing 57 874 14.59 23,739,737 17.37Trans., Communication, Utilities

24 81 1.35 1,871,093 1.37

Wholesale Trade 19 43 0.72 830,210 0.61Retail Trade 180 1,176 19.63 16,698,803 12.22Finance, Insurance, Real Estate

37 183 3.06 4,858,516 3.56

Services 386 1,226 20.47 18,212,031 13.33Government 67 1,784 29.78 56,860,882 41.61Other - - - - -Total 968 5,990 100.00 $136,638,5

81100.00

An entry of "*" indicates data suppressed for confidentiality. The sum of the "*" entries equals the entry for "Other."

STATE PUBLIC ASSISTANCE PROGRAMS FOR FISCAL 2003Program Total Grants Monthly

AveragePercentage

of Population

Served

Rank by Percentage of

Population

Temporary Assistance to Needy Families (TANF)

$1,119,885 504 2.41 18

Diversion 27,273 7 0.03 11

Consolidated Emergency Assistance Program (CEAP)

- - - -

General Assistance 242,299 82 0.39 9

Refugee Assistance - - - -

Food Stamps 1,951,120 1,990 9.52 14

Medical Assistance $13,434,651 4,202 20.11 16

2000 Commuting Patterns of Pacific CountyResidents Commuting to Workplace Number of Workers

Pacific County, WA 6,511

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Grays Harbor County, WA 545Clatsop County, OR 442King County, WA 88Lewis County, WA 66Nonresidents Commuting to Pacific County Number of WorkersGrays Harbor County, WA 281Wahkiakum County, WA 151Thurston County, WA 77Clatsop County, WA 72Lewis County, WA 70Kern County, CA 13

Source: Grays Harbor County Workforce Study Analysis Comparing 1999 and 2004.

The commute distance has increased 48% for these workers from 1999 to 2004. Those commuting 20 or miles to work each day now represent 36% of the population from the western part of the region and 20% now commute 20+ miles each day from the eastern region.

Lewis County SummaryThe beginning of the New Year was unkind to the Centralia Labor Market Area (Lewis County) as a rising unemployment rate and declining non-farm jobs – hit the area with a vengeance. The unemployment rate for February 2007 was 9.7 %.

Over the month, non-farm employment numbers declined by 240, to a January preliminary total of 25,390. In that loss, there was a drop of 70 jobs in Goods and 150 in Services. The largest sector loss was in Retail as, with the holiday spirit gone, Retail Trade sliced 90 jobs from payroll. On the Goods side, the Construction sector matched that loss as short days and poor weather ate into payroll. All was not negative over the month as Government (+50) and Manufacturing (+20) added jobs over the month.

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Over the year the growth in the local economy was weak, as non-farm jobs expanded at less than 1.0 % (+0.8). While the over the year total shows a gain of 210 jobs, the Trans-Alta closure dropped the Natural Resources category by 550 jobs over the year, leaving Goods Producing employment down by 400. The good news was that Trade, Transportation and Utilities were up 300, Manufacturing was up 150, and All Other Services expanded by 180. There was also positive gain showed by Government (+110), and Information and Financial Activities. If these sectors had not shown positive growth, the Trans-Alta immediate impact would have been much greater. A Secondary and Tertiary impacts based upon a decline in consumer spending by the affected workers are expected. The average salary of workers at the mine was $65,000 a year.

The Trans-Alta closure was also the culprit behind the skyrocketing unemployment rate for the area. The January unemployment numbers show a jump to 9.6 % unemployed from 8.3 in December. In Lewis County in January of 2007, the Labor Force was 31,940, the number of employed was 28,870. The number of unemployed was 2,310 and the unemployment rate was 7.3% in March of 2007, as compared with 7.8% in January 2006.

Source: Pacific Mountain Consortium Labor Area Summary, January 2007 (Continued). Jim Vleming, Regional Labor Economist, 3/8/2007

Labor Market Information for

Lewis CountyNot Seasonally Adjusted/*UPDATED WITH ***QCEW DATA: September 2006 AS of March, 2007

        Change

  Preliminary Revised Revised Dec-06Jan-06 Jan-06

Employment by Place of Residence Jan-07 Dec-06 Jan-06 Jan-07Jan-07 Jan-07%

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   Civilian Labor Force 31,940 31,590 31,360 350 580 1.8%

      Resident Employment 28,870 28,960 28,900 -90 -30 -0.1%

      Unemployment 3,070 2,630 2,460 440 610 24.8%

      Unemployment Rate 9.6 8.3 7.8 1.3 1.8

Employment by Place of Work (**NAICS Industry Titles)

TOTAL NONFARM 1/ 25,390 25,630 25,180 -240 210 0.8%

TOTAL PRIVATE 20,190 20,480 20,090 -290 100 0.5%

GOODS PRODUCING 5,670 5,740 6,070 -70 -400 -6.6%

    NAT. RESOURCES, MINING, and CONSTRUCTION 2,030 2,120 2,580 -90 -550 -21.3%

    MANUFACTURING 3,640 3,620 3,490 20 150 4.3%

SERVICES PROVIDING 19,730 19,880 19,110 -150 620 3.2%

    TRADE, TRANSPORTATION, and UTILITIES 5,890 6,060 5,590 -170 300 5.4%

        Wholesale Trade 540 620 530 -80 10 1.9%

        Retail Trade 3,810 3,900 3,660 -90 150 4.1%

        Transportation, Warehousing and Utilities 1,540 1,540 1,400 0 140 10.0%

    INFORMATION and FINANCIAL ACTIVITIES 1,060 1,070 1,040 -10 20 1.9%

    ALL OTHER SERVICES 7,570 7,610 7,390 -40 180 2.4%

    GOVERNMENT 5,200 5,150 5,090 50 110 2.2%

        Federal Government 210 220 220 -10 -10 -4.5%

        State and Local Government 4,990 4,930 4,870 60 120 2.5%

             Educational Services 2,700 2,680 2,640 20 60 2.3%

Workers in Labor/Management Disputes 0 0 0 0 0 0

Lewis County Overview Over the past twenty years, Lewis County has gone through a significant period of transition. Historically, natural resources have been the major industries

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in this county. However, international competition, restructuring with a view toward productivity, and government decisions to limit logging and other activities impacting the environment have severely altered the economic structure of the county. The number of unemployed was 2,310 and the unemployment rate is 7.3% in March of 2007 as compared with 7.8 in January 2006. The largest employment sectors in Lewis County providing the most employment opportunities are lumber and wood production, utilities, hospitals, primary and secondary education, and health and medical services. Most of the employers in Lewis County are classified as small businesses. Ninety-one % of all employed workers in the county are employed by small businesses employing one to nineteen employees. Sixty-six % of all employees are employed by small businesses of four or less employees.

The county has gone from a resource-based/goods producing economy to a more service oriented economy. The service producing sectors are the largest by far in Lewis County with more than 19,730 jobs in January of 2007. Employment growth has shifted as the industrial base has continued to shift. In particular, trade and services have brought about a recent economic expansion. Employment in the service industry almost doubled between 1970 and 1990. Trade employment more than doubled during this same time period. The service and trade industries continue to grow at a substantial rate as large, retail facilities, such as Wal-Mart and Home Depot, become part of the local county employment base. In 2004, taxable retail sales showed a record %age increase in Lewis County. It was higher than any other county in the state. As a result, the unemployment rate declined significantly from March 2004 to March 2005. In March 2004, the unemployment rate was 10.0 %. In March 2005, the unemployment rate declined to 8.2 %. While this is still higher than the statewide average of 5.2 %, it was a significant improvement. As this trend continued, unemployment declined to a near-record low of 5.7 % by October 2006 (one month before the closure of the Centralia Coal Mine.

By January 2007; however, unemployment in Lewis County had almost doubled. This dramatic jump in unemployment rose again from 5.7 % to 9.6 %. This is largely due to the closure of Washington’s largest coal mine, the Centralia Coal Mine, is located 5 miles northeast of Centralia. Since its closure, the mine is already subject to some revegetation. It covers more than 14,000 acres of typical low-elevation woodland. Reclamation at the site includes reforestation that is establishing the pre-mining forestry land use. Newly unemployed mine workers packed a union hall in November of 2006, looking for work, unemployment benefits and friendly faces after a Canadian company shut down its increasingly costly coal field. Calgary, Alberta-based TransAlta Corp.'s chief executive apologized to the mine's 600 workers for the abrupt closure, which was announced November 27, 2007.

The Centralia Mine completed its 31st year of production in 2001, producing 4,624,245 short tons of subbituminous coal, 354,481 tons more than it produced in 2000. The mine s average annual production over the last 5 years was 4.4 million tons per year; average annual production over the life of the mine was 4.3 million tons per year. While these renovations provided new employment opportunities within Lewis County; the higher operating costs required by the more stringent regulations imposed by the Corp of Engineers, resulted in a dramatic shift in permit time-lines. This shift and two landslides forced mining costs to soar. As a result, the company was forced to close its mine in November 2006. This closure resulted in the largest single employee layoff and most significant per capita income loss in the history of Lewis County.

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The mine was dedicated to supplying coal to the Centralia Steam Plant. The steam plant is operated by TransAlta Centralia Generation LLC is still in operation. The steam plant consists of a 248 Megawatt gas fired power generator.a gas-fired power plant that began operation in August 2002. The electrical plant, which burned coal from the mine, has switched to Wyoming suppliers. The power plant employs about 225 people.

This closure brought opportunity as well. TransAlta donated a thousand acres of land to the county and provided $200,000 in cash to help with permitting on the property so the county can develop a major industrial land bank or business park. “We’re going to start recruiting some major corporations,” explained Bill Lotto, Executive Director of the Lewis County EDC. The donation followed the closure of the mine. In addition, the workers continued to receive pay and benefits through January of 2007 because TransAlta did not give the required notice prior to closing the mine. According to the federal Worker Adjustment and Retraining Notification (WARN) Act Guide, dislocated employees who do not receive appropriate notification prior to the closure of their workplace are entitled benefits for a longer duration than those dislocated workers receive after the required notification has been honored. The mine was closed the same day the closure was announced to the public.

Economic Development Solutions Group, chaired by your EDC, met to take action to reduce, as much as possible, the negative affects of the mine closure. Fifteen separate organizations and individuals, supported by the TransAlta Corp., agreed to work on this critical initiative. The coalition included government, business, labor, and education interests. They decided to place special emphasis on short-term actions and results. Focus would be directed at projects that provide job opportunity through 2008. It was felt that while this closure will continue to impact the community for a number of years, the two years after the closure would be the most critical. A key strategy to spur employment opportunities has been to encourage government to maintain their existing construction schedules for transportation projects. These include widening I-5 from 13th Street to Rush Road, the LaBree Road Interchange, and the Chamber Way Roundabouts. In addition, it was agreed that local governments should be challenged to not only maintain these schedules but, wherever possible, move projects forward - even a month or two could be very beneficial. Many non-road construction projects were also suggested for employment opportunities. These included Providence Hospital, Uhlmann Motors, Hampton Lumber, and Centralia College. It was noted that in all these projects, it was important that Lewis County receive commitments to ensure that local contractors were able to bid on the work.

Major investments such as Great Wolf Lodge at Grand Mound and The White Pass Ski Area expansion are also being encouraged by the EDC to begin immediately. Each would give a boost to an important area of the economy. One additional key strategy the EDC used to improve the work related opportunities of the laid off workers was to request that Governor Gregoire appoint a person from her staff to assist in these employment efforts. It was agreed this could be helpful as representatives of the EDC and Workforce met with the Department of Transportation/Community, Trade and Economic Development (CTED)/Ecology/and legislators. In addition, there are a number of projects and developments underway or in the planning stages. The following organizations are investing in new projects, businesses and/or expansions in Lewis County:

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Alliance Carpet/Mohawk Industries

Cardinal Glass Braun NW (Ambulance

manufacturer) Lewis County Forest

Products Fred Meyer Distribution

Center High Loft Northwest

(Bonded fiber manufacturer) Michaels Scot Industries

In addition, this coalition of concerned partners focused upon opportunities that organized labor, Centralia College, and the Workforce System could identify and create appropriate short-term opportunities. For the most part, all three put their attention in providing short-term training and certification programs to help those unemployed get the training necessary to qualify for other jobs. The Pacific Mountain Workforce Development Council secured nearly $700,000 to provide the immediate training needs for the mining workers through WorkSource Lewis County. Many of the dislocated workers chose this short-term training so they could return to work quickly. Some of these funds were used to hire operating engineers from the Apprenticeship Training Trust to provide training in high demand skills that would hopefully result in the re-employment of these workers by late spring of 2007.

Lewis County's location on the I-5 corridor between Seattle to the north and Portland to the south makes it an ideal location for warehousing facilities. Fred Meyers and Circuit City have already built facilities. The Fred Meyer distribution facility has begun a major expansion of its center. When fully complete, an additional 150 to 200 jobs can be expected. This strategic location in Lewis County is expected to attract other development projects in the near future.

Manufacturing continues as a source of occupations in demand. In addition to wood products, glass manufacturing has become a significant industry in Lewis County. Cardinal Glass has built facility in the Winlock area at a cost of $140 million. It employs approximately 220 individuals. A tempering plant has also been built in Chehalis. The coating plant in Tumwater has also expanded its operations creating regional employment opportunities. The manufacturing of transportation equipment along with metal fabrication and plastics are also undergoing significant expansion.

Since its inception, the Lewis County EDC has worked with over eighty firms that have located in Lewis County. The Lewis County Economic Development Council is actively involved in working to recruit new business and ensure the success of existing local businesses. These companies are responsible for providing over 2,300 jobs to the county. In addition, it has worked with over 250 local firms, helping them to expand or strengthen their operations. Finally, the EDC has worked with its many partners to solve transportation, utility, and regulatory problems. EDC partners include over 300 business members plus local government, education, and other community based groups.

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Lewis County Industry Employment Projections

Forestry/Logging Together with the complementary industry of lumber/wood products, this industry forms a dominant employment sector in Lewis County. Lewis County has major stands of timber on both federal and private lands. Employment in this industry is highly seasonal due to fire danger in the summer and cold and wet weather in the winter. Modest increases are being reported as the "Wall of Wood," anticipated for years, has become a reality. Employment should continue to increase, but slowly.

Lumber/Wood Products The dominant manufacturing industry in Lewis County is lumber/wood products. Like forestry/logging, it is also seasonal and cyclical. The county's dependence on this industry often shows up in higher than state average unemployment. The employment figures in the lumber and the wood products industry have recently been on the rise. This increase has been fueled by an increase in the acreages of standing timber available for production. Two new mills have started over the past few years. In addition, there have been expansions of firms in the eastern part of the county. Sierra Pacific, a California based company has recently purchased the Centralia Sawmill Company’s facility at the Port of Centralia. It is the largest private forest land holder in North America. This is good news for the employment and economic development of Lewis County. This industry sector continues to grow as local hardwood mills and a local plywood producer rely on local labor to meet their workforce needs. West Coast Mills employs 90 workers and produces wood products. Kinnear/Wayne-Dalton has a payroll of 64 employees who manufacture wood products. Shakertown employs 50 individuals to create wood products. The employment impact will be modest since new mills use new technology and require fewer employees. Wood products manufacturing is again a “demand” occupation. The projection for this industry is modest growth.

Government/Education The government sector supplies a number of employment opportunities of all types. Lewis County employs 670 individuals while the City of Chehalis employs 100. Education is also a large employer within the government sector. Centralia School District employs 420 employees.Energy Production Power generation continues to be a source of many family wage jobs in Lewis County. TransAlta, owners of the Centralia Power Plant have recently improved the facility to meet stringent EPA standards for emissions. Opportunities were created in the construction trades when TransAlta spent $200 million in new scrubber technology for the plant. This new facility was operational as of July 2002. Tractebel Electricity and Gas International has also built a facility in Chehalis.

Services This sector employed 19,730 workers in 2006. This diverse sector is comprised of a variety of service related activities. The largest division of the sector Lewis County is in health services. It provides an unusually large %age of the total employment throughout the county by employing 4,566 workers. This compares favorably with the 26.9 % of the workforce providing health related services throughout the state. These services include hospitals, offices of private medical and dental practitioners and nursing care facilities. The health service average wage in Lewis County of $32,534 is close to the statewide average of $38,942. It should be noted that

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while the total average wage of service providers increased 64 % from 1981 to 1999, the health services wage increased 150 % during the same time period. While the increase is now more modest, these categories of employment are still in high demand. Providence Centralia Hospital is a 191-bed, not-for-profit community-based hospital operating two campus locations: one in Centralia and the other in Chehalis. Addiction recovery and grief related programs sponsored by the hospital offered in Morton, South Bend, Longview and Long Beach. With expanding technology, this rural hospital has become the heart of medical care in Lewis County and surrounding areas. Assured Home Health is a health care provider with 80 employees. Other service related industries within Lewis County with fairly substantial numbers of employment are business services, private household help, social services, and other government related services especially education. Rail Car Washington employs people to perform railcar maintenance. The Chronicle employs 80 writers, editors and other staff to publish the local newspaper. This industry has a strong potential for growth.

Agriculture and Aquaculture Products Agriculture is a major industry in Lewis County, but has been in decline in recent years. The majority of declines have come in the area of dairy farming. Small dairies are finding it increasingly difficult to operate due to Department of Ecology regulations. In recent years, the industry has declined from 60 working farms to less than 30. These declines are largely due to ecological regulations aimed at reducing waste products. In terms of agriculture, Lewis County produces relatively small amounts of crops such as barley, oats, green peas and corn. Some hay and winter wheat is also grown. The majority of the employment in this industry comes from ornamental horticulture (about 200 workers). The outlook is for stagnant to slow decline in this industry.

Manufacturing There are a number of manufacturing companies in Lewis County. Imperial Fabricating employs 100 individuals and manufactures truck parts through metal fabrication. Braun Northwest, Inc. employs 80 workers to manufacture emergency vehicles. Central Reddi Mix employs 75 to manufacture concrete products. Potential for growth.

Construction and Mining The closure of the TransAlta coal mine has seriously impacted this sector with a loss of nearly 600 jobs. Construction in Lewis County is strong. It provides 915 positions and represents 3.2% of the workforce. With a variety of other major projects such as the Tractebel facility, the new combined cycle power plant at TransAlta and the new building at the Centralia College, construction should remain strong in the near future. There is potential for moderate growth in the Construction Industry.

Retail Trade and Services Employment in the trade division provided 3,660 employment opportunities in 2006. This sector grew 4.1 % from 2005 to 2006. A particularly bright spot for the county has been the outlet shopping center in Centralia, which provides a large number of jobs. As the population increases, the presence of large retail facilities such as Wal-Mart and Home Depot stimulates economic growth. Centralia/Chehalis’s central location between Seattle and Portland makes it an excellent candidate for development. Pace Edwards employs 100 individuals and sells truck accessories. Sears (included in L.C. mall) employs 93 workers.

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Presently, 11.3% of the workforce is employed as sales professionals, sales workers and clerks. This sector employs more than 3,311 workers. Lewis has had significant success attracting regional warehouse and distribution firms. There is possibility of modest for growth.

Tourism/Hospitality Lewis County has a great variety of terrain and natural beauty. The Cascades in the east, flat central plains and rugged wooded hills form the contrasts in Lewis County. Mt. St. Helens and Mt. Rainier National Park draws visitors from elsewhere in the state and nation. For the more adventurous, Lewis County is one of the Northwest's best outdoor playgrounds. There is plenty of backcountry camping, mountain climbing, skiing, kayaking, windsurfing and hang gliding available for the adventurous. The eastern county attracts hunters in the winter, while the Cowlitz River is a Mecca for steelhead salmon and river rafters. The White Pass ski area has just been approved by the U.S. Department of Interior for expansion. The County encourages tourists to take advantage of its beauty and recreation areas by driving Scenic Byway 6. There are a number of sights to see including visiting the Veterans Memorial Museum, boarding the Chehalis-Centralia Railroad's steam train for a nostalgic ride along the Chehalis River and hiking in Rainbow Falls State Park. These are all great potential draws. Unfortunately, there have not been enough hospitality infrastructures to accommodate a larger guest population. There is tremendous potential for increases in this industry. It appears to require only the investment of capital to make it happen.

Largest Employers in Lewis County (All Sectors) based upon Employment

Company Employees Product/ Service

Centralia Hospital 800 800 Medical CareLewis County 670 GovernmentCentralia School District 420 EducationFred Meyer 375 to 400 DistributionChehalis School District 390 EducationWal-Mart 380 RetailHampton Affiliates 350 Wood Products

TransAlta 310 Energy ProductionNational Frozen Foods 300 Food ProcessingCentralia Factory Outlets 280 Retail

Hardel Mutual Plywood 240 Wood ProductsCentralia College 225 EducationCascade Hardwoods 220 Wood ProductsSafeway Stores 200 Retail GroceryCity of Centralia 190 Government

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Fullers Market Basket 175 Retail GroceryLiberty Country Place 175 Skilled Nursing & Rehab FacilityQuali-Cast Foundry 160 Metal CastingLewis County Forest Products 150 Wood ProductsSteck Medical Group 150 Medical CareNorthwest Hardwoods 145 Wood ProductsTubafor Mills, Inc. 120 Wood ProductsLewis County P.U.D. 120 Public UtilitiesSymon’s Frozen Foods 42 to 120 Food Processing

Copyright 2007 © Lewis County EDC | (360) 748-0114marketing@lewisedc.com l www.lewisedc.com

LEWIS COUNTY OCCUPATIONAL EMPLOYMENT PROFILE

Male Female TotalEmployed Civilians 16 years and over 14,880 12,001 26,881

Management, professional & related 3,016 3,420 6,486Management , business, financial operations 1,286 990 2,276

Management (except farmers & farm managers 1,449 542 907Farmers & farm managers 215 82 297Business & financial operations 164 366 530

Business operations specialists 92 150 242Financial specialists 72 216 288

Professional & related 1,730 2,430 4,160Computer & mathematical 161 41 202Architecture & engineering 233 41 274

Architects, surveyors, cartographers & engineers 158 21 179Drafters, engineering & mapping technicians 75 20 95

Life, physical & social science 179 66 245Community & social services 220 248 468Legal 56 75 131Education, training & library 470 1,024 1,494Arts, design, entertainment, sports & media 116 134 250Healthcare practitioners & technical 295 801 1,096

Health diagnosing, treating practitioners & technical 219 461 680Health technologists & technicians 76 340 416

Service Occupations 1,748 3,024 4,772Healthcare support 89 583 672Protective service 411 112 523

Firefighting, prevention & law enforcement workers including supervisors

267 40 307

Other protective services including supervisors 144 72 216Food preparation & serving related 444 1,058 1,502Building & grounds cleaning & maintenance 646 300 946Personal care & service 150 971 1,129

Sales & office 2,123 4,403 6,526Sales & related 1,316 1,718 3,034Office & administrative support 807 2,685 3,492

Farming, fishing & forestry 1,047 144 1,191Construction, extraction & maintenance 3,178 73 3,251

Construction & extraction 1,854 35 1,884

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Supervisors, construction & extraction workers 139 0 139Construction trade workers 1,624 33 1,657Extraction workers 91 2 94

Installation, maintenance & repair 1,324 38 1,362Production, transportation & material moving 3,768 937 4,705

Production occupations 1,791 473 2,264Transportation & material moving 1,977 464 2,441

Supervisors, transportation & material moving workers 34 14 48Aircraft & traffic control 23 0 23Motor vehicle operators 1,016 197 1,213Rail, water & other transportation 92 14 106Material moving workers 812 239 1,051

LEWIS COUNTY INDUSTRY EMPLOYMENT PROFILE

Male Female Total

Employed Civilians 16 years and over 14,880 12,001 26,881

Agriculture, forestry, fishing, hunting & mining 1,889 262 2,151

Agriculture, forestry, fishing & hunting 1,598 235 1,833

Mining 291 27 318

Construction 1,993 109 2,102

Manufacturing 2,381 659 3,040

Wholesale Trade 610 188 798

Retail Trade 1,546 2,116 3,662

Transportation, warehousing & utilities 1,481 462 1,943

Transportation & warehousing 1,099 396 1,495

Utilities 382 66 448

Information 191 230 421

Finance, insurance, real estate & rental & leasing 370 717 1,095

Finance & insurance 155 502 657

Real estate & rental & leasing 223 215 438

Professional, scientific, management, administration & waste management services

829 565 1,394

Professional, scientific & technical service 369 306 675

Management of companies & enterprises 0 0 0

Administrative, support, waste management service 460 259 719

Educational, health & social services 1,282 4,036 5,318

Educational services 783 1,519 2,302

Health care & social assistance 499 2,517 3,016

Arts, entertainment, recreation, accommodation & food servers

777 1,169 1,946

Arts, entertainment & recreation 340 173 413

Accommodation & food services 537 996 1,533

Other services (except public administration) 756 751 1,507

Public administration 767 737 1,504

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Lewis County Demographic Profile

Lewis County Demographics for 2005 and Projections for 2010

Population (2005)

Total Percentage 2005 Population 72,039

Population (2010)Total Percentage

2010 Population 75,418 .95% (less than 1.0%)

Sex (2005)Total Percentage

Male 35,804 49.7%Female 36,235 50.3%

Sex (2010)Total Percentage

Male 37,559 49.8%Female 37,859 50.2%

Age Distribution (2005)Total Percentage

0-4 4,345 6.0%5-9 4,407 6.1%10-19 10,429 14.5%20-29 9,832 13.6%30-39 8,166 11.3%40-49 10,055 14.0%50-59 9,786 13.6%60-64 3,798 5.3%65+ 11,221 15.6%

Age Distribution (2010)Total Percentage

0-4 4,723 6.3%5-9 4,475 5.9%10-19 9,672 12.8%20-29 11,296 15.0%30-39 8,683 11.5%40-49 9,224 12.2%50-59 10,654 14.1%60-64 4,520 6.0%

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65+ 12,171 16.1%

Race Distribution (2005)Total Percentage

White 67,186 93.3%Black 263 0.4%American Indian 823 1.1%Asian 550 0.8%Pacific Islander 116 0.2%Other 1,723 2.4%Multi-Ethnic 1,378 1.9%Hispanic 4,738 6.6%

Race Distribution (2010)Total Percentage

White 70,544 93.5%Black 268 0.4%American Indian 790 1.0%Asian 619 0.8%Pacific Islander 111 0.1%Other 1,877 2.5%Multi-Ethnic 1,209 1.6%Hispanic 5,801 7.7%

2005 Labor Force StatusTotal Percentage

Labor Force 32,181Employed 29,509 91.7%Unemployed 2,624 8.2%In Armed Forces 48Not In Labor Force 25,104

2010 Labor Force StatusTotal Percentage

Labor Force 34,091Employed 31,270 91.7%Unemployed 2,770 8.1%In Armed Forces 51Not In Labor Force 26,551

2005 Household Income DistributionTotal Percentage

<$10,000 2,790 10.1%

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$10-$20,000 4,000 14.5%$20-$30,000 3,654 13.3%$30-$40,000 3,757 13.6%$40-$50,000 3,405 12.4%$50-$60,000 2,564 9.3%$60-$75,000 2,887 10.5%$75-$100,000 2,465 8.9%> $100,000 2,022 7.3%

2010 Household Income DistributionTotal Percentage

<$10,000 2,780 9.7%$10-$20,000 3,640 12.7%$20-$30,000 3,545 12.4%$30-$40,000 3,405 11.9%$40-$50,000 3,216 11.2%$50-$60,000 2,936 10.3%$60-$75,000 2,771 9.7%$75-$100,000 3,107 10.9%> $100,000 3,192 11.2%

2005 Education AttainmentTotal Percentage

Population Age 25+ 47,433< Grade 9 2,510 5.3%Grade 9-12 6,824 14.4%High School 15,160 32.0%Some College 12,004 25.3%Assoc Degree 3,851 8.1%Bach Degree 4,339 9.1%Grad Degree 2,745 5.8%

2010 Education AttainmentTotal Percentage

Population Age 25+ 50,858< Grade 9 2,525 5.0%Grades 9-12 6,859 13.5%High School 16,546 32.5%Some College 12,047 23.7%Assoc Degree 4,326 8.5%Bach Degree 5,308 10.4%Grad Degree 3,247 6.4%

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2005 Size of HouseholdTotal Percentage

1 Person 6,993 25.4%2 Person 10,252 37.2%3 Person 4,150 15.1%4 Person 3,697 13.4%5 Person 1,543 5.6%6+ Person 624 2.3%

2010 Size of HouseholdTotal Percentage

1 Person 7,612 26.6%2 Person 10,812 37.8%3 Person 4,267 14.9%4 Person 3,826 13.4%5 Person 1,394 4.9%6+ Person 517 1.8%

Lewis County Representative Occupations

OccupationEmployee

s EntryWage

Exp.Wage

MeanWage

Accountants and Auditors 1,157 $18.42 $30.65 $26.58Administrative Services Managers

125 $21.35 $40.99 $34.44

Computer Operators 135 $11.46 $17.23 $15.30Computer Programmers 443 $18.31 $25.07 $22.82Computer Support Specialists

3,433 $11.49 $21.06 $17.86

Customer Service Representatives

1,945 $10.22 $16.33 $14.30

Electrical and Electronic Engineering Technicians

231 $23.78 $26.44 $25.55

Executive Secretaries and Administrative Assistants

785 $14.71 $23.56 $20.62

Financial Managers 395 $27.54 $47.43 $40.79First-Line Supervisors/Managers of Office & Administrative Support Workers

1,389 $13.36 $22.23 $19.25

Laborers and Freight, Stock, and Material Movers, Hand

2,366 $8.86 $14.78 $12.81

Machinists 388 $16.51 $21.84 $20.06Maintenance and Repair Workers, General

1,246 $12.05 $19.83 $17.24

Mechanical Engineers 488 $26.36 $44.64 $38.54Operating Engineers & Other Construction Equipment Operators

802 $19.84 $31.54 $27.64

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Packers and Packagers, Hand

967 $8.13 $11.13 $10.13

Secretaries, Except Legal, Medical, and Executive

1,887 $9.50 $15.16 $13.28

Shipping, Receiving, and Traffic Clerks

741 $8.84 $13.95 $12.25

Source: Employment Security Department- www.workforceexplorer.com

Occupational Wage Data, November 2006

CITY/TOWN POPULATION AS OF 2003Centralia Chehalis Morton Mossyrock Napavine Pe Ell Toldo Vader Winlock

15,110 7,010 1,025 485 1,330 660 685 610 1,340

2002 AVERAGE MONTHLY EMPLOYMENT & TOTAL WAGES IN COVERED EMPLOYMENTIndustry Employers Average

Number of Employees

Percentage of Total

Wages Paid Percentage of Total

Agriculture, Forestry, Fishing 166 923 3.74 $17,869,308 2.58

Mining 12 648 2.62 39,754,197 5.73

Construction 231 905 3.67 27,497,953 3.97

Manufacturing 200 3,790 15.35 136,069,958 19.62

Trans., Communication, Utilities

143 1,007 4.08 46,461,170 6.70

Wholesale Trade 105 720 2.92 22,299,331 3.22

Retail Trade 484 5,904 23.91 117,384,073 16.93

Finance, Insurance, Real Estate

118 636 2.58 17,437,944 2.51

Services 1,415 5,291 21,43 112,468,316 16.22

Government 118 4,869 19.72 156,175,480 22.52

Other - - - - -Total 2,992 24,693 100.00 $693,417,730 100.00An entry of "*" indicates data suppressed for confidentiality. The sum of the "*" entries equals the entry for "Other."

STATE PUBLIC ASSISTANCE PROGRAMS FOR FISCAL 2003Program Total Grants Monthly

AveragePercentage

of Population

Served

Rank by Percentage

of Population

Temporary Assistance to Needy Families (TANF)

$4,975,002 2,417 3.43 9

Diversion 37,625 12 0.02 21

Consolidated Emergency Assistance Program (CEAP)

546 0 0.00 19

General Assistance 690,558 244 0.35 17

Refugee Assistance - - - -

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Food Stamps 6,882,579 6,978 9.91 12

Medical Assistance $51,590,766

16,137 22.92 9

2000 Commuting Patterns of Lewis CountyResidents Commuting to Workplace Number of Workers

Lewis County, WA 21,073Thurston County, WA 2,383Cowlitz County, WA 899Pierce County, WA 641King County, WA 540Grays Harbor County, WA 147Clark County, WA 97Multnomah County, OR 97Mason County, WA 71Pacific County, WA 70Yakima County, WA 39Washington County, OR 29Nonresidents Commuting to Lewis County Number of WorkersThurston County, WA 2,843Cowlitz County, WA 300Pierce County, WA 214Grays Harbor County, WA 180Pacific County, WA 66Clark County, WA 48Mason County, WA 41Hidalgo County, TX 29

Mason County SummaryWinters grip caught up with the Shelton Labor Market Area (Mason County) as unemployment gained numbers and nonfarm jobs lost numbers between December 2006 and January 2007.

The preliminary data shows 23,000 Mason County residents working as 1,910 were looking for jobs. The result was a 7.7 % unemployment rate, up from 6.1 in December and 6.3 in January 2006. Statewide, the January unemployment rate was 5.9 %.

Over the month, nonfarm jobs were off by 410 paychecks in the county, with 360 of that loss coming from the Services Providing sector. The January preliminary total also found losses in Manufacturing (-40), Trade, Transportation and Utilities (-240) and All Other Services (-100). While the over-the-month news was far from good, the over-the-year data yielded much better figures.

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The January 2007 preliminary nonfarm total of 13,980 was 460 jobs better than January 2006’s total. That gain of 460 marks an annual growth rate of 3.4 %, a solid gain when compared to the statewide average of 2.5 % over the same time span. The data shows 360 more jobs were counted in the Services sector and 100 more paychecks were added on the Goods Producing side. The vast majority of the gain can be attributed to a 300 paycheck increase in State and Local Government employment. Employment in Retail Trade (+50) and the Transportation group (+30) were also up over the year. On the Goods side of the ledger, Manufacturing was up 60, as the Construction grouping added 40 jobs to the total. The only sector that posted an over-the-year loss was the Information and Financial Activities group, which loss just ten jobs from January 2006.

With springtime not far off, look for seasonal influences to keep the unemployment high, with over-the-month job losses continuing to be the trend, although it’s unlikely they will reach the magnitude of December-January. In March of 2007, the labor force was 25,170, the number of employed workers was 23,540, the number of unemployed was 1,640 and the unemployment rate was 7.3%.

Labor Market Information for

Mason CountyNot Seasonally Adjusted/*UPDATED WITH ***QCEW DATA: September 2006 As of March 2007

      Change

  Preliminary Revised Revised Dec-06 Jan-06 Jan-06

Employment by Place of Residence Jan-07 Dec-06 Jan-06 Jan-07 Jan-07 Jan-07%

   Civilian Labor Force 24,910 25,270 24,240 -360 670 2.8%

      Resident Employment 23,000 23,730 22,700 -730 300 1.3%

      Unemployment 1,910 1,540 1,540 370 370 24.0%

      Unemployment Rate 7.7 6.1 6.3 1.6 1.4

Employment by Place of Work (**NAICS Industry Titles)

TOTAL NONFARM 1/ 13,980 14,390 13,520 -410 460 3.4%

TOTAL PRIVATE 8,830 9,220 8,670 -390 160 1.8%

GOODS PRODUCING 3,040 3,080 2,940 -40 100 3.4%

    NAT. RESOURCES, MINING, and CONSTRUCTION 1,120 1,120 1,080 0 40 3.7%

    MANUFACTURING 1,920 1,960 1,860 -40 60 3.2%

SERVICES PROVIDING 10,940 11,300 10,580 -360 360 3.4%

    TRADE, TRANSPORTATION, and UTILITIES 2,110 2,350 2,050 -240 60 2.9%

        Wholesale Trade 310 500 320 -190 -10 -3.1%

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        Retail Trade 1,620 1,650 1,570 -30 50 3.2%

        Transportation, Warehousing and Utilities 190 200 160 -10 30 18.8%

    INFORMATION and FINANCIAL ACTIVITIES 590 590 600 0 -10 -1.7%

    ALL OTHER SERVICES 3,090 3,190 3,080 -100 10 0.3%

    GOVERNMENT 5,150 5,170 4,840 -20 310 6.4%

        Federal Government 70 70 70 0 0 0.0%

        State and Local Government 5,070 5,090 4,770 -20 300 6.3%

            Educational Services 1,380 1,370 1,360 10 20 1.5%

Workers in Labor/Management Disputes 0 0 0 0 0 0

1/ Excludes proprietors, self-employed, members of the armed services, workers in private households,

Mason County Overview Economic diversity and increased business activity indicate Mason County is experiencing positive economic growth. 2006 was one of the most robust economic growth periods that the county has experienced in over 25 years. The county has experienced a 23.8 % gain in industry employment growth since 2001. This continuing positive growth and a drop in the unemployment rate indicate the County is on a firm economic footing. The County anticipates continued growth in manufacturing, shellfish, value-added forest products and tourism in the coming years. Support of these various business sectors is made possible through partnerships between the County, its regional Economic Development Council, Washington State Community Economic Revitalization Board, Pacific Mountain Workforce Development Council, business, government, and the community. Two hundred and fifty seven new business licenses were issued in 2005 creating a total of 1,168 active licenses in Mason County. Simpson Community Credit Union added a dozen employees when it opened its new $2.9-million building on Mountain View in 2005. One of two credit unions based in Mason County, it has about 10,000 members here.

The population of Mason County has grown at the relatively fast pace of 2.8 % annually from 1970 to 2000 compared to the state growth rate of 1.8 %. During that time, the

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number of residents grew from 20,918 to 49,405, which amounted to a 136.2 % increase. This growth rate was more than double the statewide increase of 61.6 %. Since 2000 the population growth has slowed and has remained somewhat stagnant at approximately 55,000 for the past few years. Mason County is located in an area that is easily accessible to Olympia to the south, Bremerton to the north and Seattle/Tacoma to the east. The scenario has attracted many people who are retired or who are willing to commute to employment centers to the north, south and east.

Mason County's unemployment rate has been a problem in the past. It has not, however, been as severe as that experienced by the other timber-dependent counties within the workforce development Area. Much of the timber land in Mason County is privately owned. By November 1999, the county's unemployment rate had dropped to 5.3 % compared to a Washington state average of 4.5 %. The unemployment roll declined from 8.8 % in March of 2004 to 7.9 % in January of 2007. This is largely due to some strong industries within the county and the easy commute to other population centers. One-third of Mason County's workforce commutes to other counties for employment.

Industries within Mason County that are seeing significant growth, or are expected to emerge, include service and retail trade, engineered wood products, all areas of health care (including assisted care facilities), and shellfish growing. Much of the new growth is coming from clam and mussel production.

The Port of Shelton worked closely with Belco Forest Products to fund and build a waterline that was required for Belco Forest Products in their expansion. The funding of this project was a partnership of Mason County, the Washington State Community Economic Revitalization Board, and Port of Shelton. The completion of this project was also made possible by coordination with the City of Shelton to ensure that the line would be compatible with the regional water and sewer system. The Port of Shelton is expanding both its infrastructure development and added additional new tenants. It also resumed managing the Oakland Bay Marina. There are future plans to expand the existing marina to include public access through a public boat launch and day use moorage. These support tourism and environmental cleanup activities. The Port of Shelton has also made significant investment into the infrastructure at both Sanderson Field and John’s Prairie locations. These improvements include paving roads, signage, the rail reload facility and improving 2,000 feet of track. They have also created a waterline extension. The Port of Allyn has undertaken a major upgrade of their existing water system to support existing and future development.

One of the most significant business developments of 2006 was the sale of Olympic Tool and Engineering to Kanaak, a subsidiary of the Alaska Native Corporation, Sealaska. Sealaska has a record of success in the area of fabrication and machining. The new owners have plans to increase operations by adding approximately 114 employees. In addition, Aero Controls is considering an investment in Sanderson Field. They are exploring an opportunity to bring aircraft into the Field for disassembly.

Government employment supplied 5,150 employment opportunities in 2007. This sector includes both education and other government entities. Government employs half the number as the next biggest category, Service Producing. Local and State government

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employ a total of 5,070 individuals. The Washington Corrections Center in Shelton is one of the largest employers in the government sector. It employs 685 workers. In 2007 the legislative granted appropriations from the State Construction Account that would be available for the construction of a new health care facility at the Washington Corrections Center for Women. They have also funded the expansion of the Reception Center at Washington Corrections Center. The predesign of this expansion will occur in 2007 and the final construction will be completed in 2011. A predesign will be provided for the new Diagnostic Center at the Washington Corrections Center as well. These expansions will create future high skills, high wages employment opportunities in construction in the County. The process will begin in July of 2007. Construction should be completed by 2013.

A large part of that focus was invested in correctional facilities, staff and infrastructure. This is impacting the employment opportunities in Mason County in a positive way. The Corrections Center is technically the second largest employer in Mason County. Government employment totals 5,105 employees in Mason County. The Squaxin Island Indian Tribe is the largest employer in the county with 828 employees after it opened its new hotel in December of 2004. Other government employment is generated through education. The county has seven public school districts, two Christian schools and a community college. The new Evergreen Elementary School in Shelton houses a bilingual program, with half of the instruction in English and half in Spanish that won a state award last year for outstanding efforts to promote and value diversity and multicultural education. Whites, with 41.9 percent of the student population, are a minority at the school.

North Mason County, and in particular Belfair, appears to be on the brink of some major development should the tentative plans for the development of the area's first sewage system become a reality. There are plans for a new hotel, office building and other developments in Belfair. In addition over 1,000 new homes are scheduled to be built once a sewer system and other required infrastructure is developed. Occupations reported by the local economic development council to be in decline include fishing (as in the other counties) and mining (primarily gravel).

Mason Transit is a leader in coordinated transportation services, including shared school/public transit services and volunteer driver training to support elders. This agency also makes use of the Road-to-Work education program in partnership with Mason County WorkSource to assist residents seeking training and jobs.

Mason County Industry Employment Projections

Government Government remains the largest industry in Mason County with a 28.5 % share of the non-agricultural employment . The Washington State Correction Center and the Shelton School District are the second and third largest employers in the county. The 2003 closure of the Mission Creek Youth Camp in Belfair had a significant negative impact on the industry. It has since been re-opened. The Little Creek Casino and Hotel, an enterprise of the Squaxin Island Tribe, sets aside 2% of the net win from its table games and delivers that money to local governmental agencies. As of December, 2000, the Tribe had delivered approximately $700,000 to local governments. With the new expansion of the Casino, more revenues have become

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available. This program is called the Community Contribution Fund and has supported growth in the government sector. Moderate growth is projected for this industry.

Forestry/Logging This industry along with lumber/wood products forms a substantial part of the employment for residents of Mason County. There are large stands of timber, including federal, state and private growing in Mason County. There are also large tracts of timber in the adjoining counties and Olympic Peninsula that feed mills in the Shelton area. Employment in forestry/logging operations is highly seasonal and accounts for the two peak employment periods unique to this county. Slow growth is projected for this industry.

Lumber/Wood Products As is the case with the majority of the Pacific Mountain Workforce Development Area, Mason County's economy has long been dominated by the timber industry. The region's forest lands have provided well-paying employment for several generations of loggers and mill workers. This is the dominant manufacturing industry in Mason County. It is seasonal and cyclical to some degree, but less than in other counties in the Pacific Mountain Workforce Development Area. Large companies like Simpson have been able to control their supply of logs. They have, therefore, had fewer down cycles from a lack of raw materials. Simpson Timber Company completed a number of large expansion projects over the last year. Their expansion totaled $20 million in reinvestment in their Shelton waterfront operations. They installed new dry kilns and a high-speed planer for finishing wood. Both of these projects increased productivity and the company’s ability to expand operating hours. The company also constructed a conveyor system which will significantly reduce its power consumption. The company has a long standing commitment to growth in the value added forest products sector. One hundred and fifty individuals are presently employed within this industry. There were layoffs in the past six months (2006), but the workforce is now stable.

Belco Forest Products, a Tacoma based facia board manufacturer that employs 45 individuals, is also expanding into the county. The company recently broke ground on their 16,000 square foot coating facility that will hire an additional 15 employees. The Mason County Economic Development Council reports expected growth in the area of engineered wood products which will positively impact employment opportunities in this area. Slow growth is projected for this industry.

Pulp/Paper This is an established industry in Mason County. The byproducts of logging and small timber that are unacceptable for milling have been turned into fiber for paper and/or export to plants in other parts of Washington and around the world. A wood products, remanufacturing company has plans to break ground this year on their 45,000 square foot facility. It will employ 15 people. Slow growth is projected in this industry.

Agriculture and Aquaculture Unless tree farms are included, agriculture forms a minor portion of Mason County's economy. In contrast, aquaculture is the second largest industry in Mason County with additional expansion expected in the next few years. Taylor Shellfish is continuing to expand its production, primarily in clams and mussels to supply its national and international markets. Taylor Shellfish Farms

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completed a major expansion which included a $3.5 Million, 22,000 square foot processing facility. They have added 12 new employees as a result. They now employ 375 individuals. This major expansion is significant to Mason County because it is one of its top five private employers. Harstine Oyster Company (HOC) was purchased by the Squaxin Island Tribe in the early 1970s. They produce an environmentally friendly product that is hand-seeded, hand-picked, hand-shucked and hand-packed at a 4,000 square-foot processing facility. No dredging is allowed during any stage of this processing. They currently sell shellstock, singles and shucked meats throughout the United States and China. Their single oysters are sold under the name Palala Bay Pacifics and their other products are sold under the product name, Salish Seafoods. Stretch Island Fruit will soon finish their expansion. There is potential for increases in employment in these industries.

Tourism/Hospitality There has been a significant amount of growth and planned growth for the tourism industry; particularly in the area of gaming and tribal industry. The Little Creek Casino and Hotel is in the middle of a large expansion that will add 90 rooms. This expansion includes the construction of a new fine dining restaurant. In addition, they broke ground in July 2006 on their $45 million dollar, 18 holes, Audubon Golf Course. These projects will increase employment at the largest employment center in the county. It employed 625 people prior to these expansions. A 1,900 seat events center has also been built. The expansion in amenities and hospitality infrastructure support the expansion of tourism. The Port of Allyn is moving forward with a number of projects. They completed a new boat launch that supports recreational boating and tourism. There are several waterfront enhancement projects in progress to improve tourism. The Oakland Bay Marina managed by the Port of Shelton, has future plans to expand the existing marina to include public access through a public boat launch and day use moorage.

Mason County has some of the most expensive and beautiful property in our region. The lands along Hood Canal are some of the most sought after waterfront properties in this part of the United States. Spectacular views of the Olympic Mountains draw tourists from around the world to this area. The shortcomings in the infrastructure to support sharply increased development in the immediate future are being addressed. The potential is tremendous and it will eventually be realized. The casino industry is also doing well in Mason County and is a draw for customers outside the county. With the addition of a hotel at the Squaxin's Casino, and the remodel of the Alderbrook Inn, tourists and their dollars are flocking to Mason County. Steady growth is expected in employment.

Health Services Historically, the health care industry has been a leader in job creation. Increases in health care employment reflect an ever increasing commitment of society's resources to health care. The aging of the population and the incumbent workforce are creating a shortage of qualified health care providers. Many providers are retiring while the need for health care for the elderly is growing. The result is an in above average growth in health services that is only limited by an available skilled workforce. Above Average growth expected.

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Manufacturing and/or Distribution Skookum Creek Tobacco is a small manufacturing company that manufactures and distributes tobacco products. It has recently moved from a 10,000 square foot facility to a 30,000 square foot facility. As an enterprise that is only one year old, this is a significant rate of growth that should impact the economic base and employment opportunities of the community. Sims Vibration, a manufacturer of a variety of sports and food products, has announced plans to move forward with a major expansion in 2007. They plan to launch several new product lines based on their vibration dampening technology. These include footwear, archery bows, and baseball bats. They are also introducing smoked cheeses and salmon for the high end gourmet smoked products market. Another significant opportunity within the manufacturing sector is the sale of Olympic Tool and Engineering to Kanaak, a subsidiary of Sealaska. Synergy Systems, a separate subsidiary of Sealaska, will be working closely with the new company, Olympic Fabrication LLC, to ensure their success and expansion. Synergy Systems has a present client list including Microsoft, Nike, General Dynamics, and Honeywell. The community has investments in marine manufacturing as well. Mirage Boats, a fiberglass boat manufacturer located in Belfair, specializes in waterskiing, wakeboarding and performance sport boats. Another manufacturer invested in Belfair is One Ball Jay, a snowboard and surfboard wax manufacturer has just transitioned into a new building. There are approximately 61 manufacturing firms in Mason County. They employ approximately 1,920 workers. Steady Growth is expected. Retail Sales This industry has increased in the past number of years as reflected in increased tax revenues. The rising population, industrial growth and increased tourism have contributed to the increases. Tribal businesses as well as other businesses are flourishing. Expansions are expected to employ additional sales and retail workers as the growing population puts pressure on the marketplace. The Wal-Mart Store in Mason County has contributed to the expansion of retail sales as has the Safeway in Belfair. Malls along the I-5 corridor will continue to profit from Mason County residents, but people won't always drive the distance if they can shop at home. Gerbing’s Heated Clothing expanded their operations to include a 5,000 square foot building at the Port of Shelton. Gerbing’s develops and manufactures electrically heated clothing for recreational activities. It is expanding into military applications as well. Their new product line has been ordered by the Department of Defense. In 2007, Mason County recorded a 15% growth in retail sales equaling $244,791,732. There is potential for increase in this industry.

Services The Services sector has been the fastest growing in Mason County between 1970 and 2000. The number of employees went from 480 to 2,350 in the last 30 years, rising 390 %. The very sharp jump from 1994 to 1996 reflects the establishment of the Squaxin Island Casino (Little Creek), which added over 300 jobs. Educational Services is the highest paying industry in the division ($27,008) followed by health services ($25,833). The health services numbers would be higher except that they don't include workers at Mason General Hospital in Shelton, whose employees are grouped in the local government sector, not in the services sector. There is strong potential for growth.

Largest Employers in Mason County (All Sectors) based on Employees

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Employer Employees Product/ ServiceLittle Creek Casino 625 TourismWashington Corrections Center 615 GovernmentShelton School District 612 Government/EducationWal-Mart's 500 RetailMason General Hospital 453 MedicalMason County 402 GovernmentSimpson Timber Co. 400 Lumber/Wood ProductsTaylor Shellfish, Inc. 370 AquacultureOlympic Panel Products 361 Lumber/Wood ProductsN. Mason School Dist. 284 Government/EducationSquaxin Indian Tribe 209 TribalMason County Forest Products 190 Lumber/Wood ProductsWelco – Skookum Lumber Co. 144 Lumber/Wood Products

MASON COUNTY OCCUPATIONAL EMPLOYMENT PROFILE

Male Female TotalEmployed Civilians 16 years and over 10,410 8,904 19,314

Management, professional & related 2,320 2,675 4,995Management , business, financial operations 1,134 901 2,035

Management (except farmers & farm managers 830 487 1,317Farmers & farm managers 46 36 82Business & financial operations 258 378 636

Business operations specialists 161 174 335Financial specialists 97 204 301

Professional & related 1,186 1,774 2,960Computer & mathematical 176 73 249Architecture & engineering 317 17 334

Architects, surveyors, cartographers & engineers 190 8 198Drafters, engineering & mapping technicians 127 9 136

Life, physical & social science 101 43 144Community & social services 95 207 302Legal 55 143 198Education, training & library 175 681 856Arts, design, entertainment, sports & media 140 148 288Healthcare practitioners & technical 127 462 589

Health diagnosing, treating practitioners & technical

88 239 327

Health technologists & technicians 39 223 262Service Occupations 1,424 2,135 3,559

Healthcare support 66 527 593Protective service 515 139 654

Firefighting, prevention & law enforcement workers. including supervisors

384 92 476

Other protective services including supervisors 131 47 178Food preparation & serving related 531 663 994

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Building & grounds cleaning & maintenance 359 216 575Personal care & service 153 590 754

Sales & office 1,291 3,347 4,638Sales & related 707 1,045 1,752Office & administrative support 584 2,302 2,886

Farming, fishing & forestry 537 64 601Construction, extraction & maintenance 2,483 118 2,601

Construction & extraction 1,337 59 1,396Supervisors, construction & extraction workers 186 0 186Construction trade workers 1,139 52 1,191Extraction workers 12 7 19

Installation, maintenance & repair 1,146 59 1,205Production, transportation & material moving 2,355 565 2,920

Production occupations 1,229 266 1,495Transportation & material moving 1,126 399 1,425

Supervisors, transportation & material moving workers

16 16 32

Aircraft & traffic control 3 0 3Motor vehicle operators 513 156 669Rail, water & other transportation 97 10 115Material moving workers 497 109 606

MASON COUNTY INDUSTRY EMPLOYMENT PROFILE

Male Female Total

Employed Civilians 16 years and over 10,410 8,904 19,314

Agriculture, forestry, fishing, hunting & mining 758 126 884

Agriculture, forestry, fishing & hunting 731 126 857

Mining 27 0 27

Construction 1,585 337 1,822

Manufacturing 1,842 413 2,255

Wholesale Trade 402 126 528

Retail Trade 996 1,279 2,275

Transportation, warehousing & utilities 705 319 1,024

Transportation & warehousing 564 230 794

Utilities 141 89 230

Information 203 174 377

Finance, insurance, real estate & rental & leasing 203 515 798

Finance & insurance 132 377 509

Real estate & rental & leasing 151 138 789

Professional, scientific, management, administration & waste management servers

643 556 1,199

Professional, scientific & technical service 311 333 644

Management of companies & enterprises 0 77 7

Administrative, support, waste management service 332 216 548

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Educational, health & social services 664 2,718 3,382

Educational services 340 958 1,298

Health care & social assistance 324 1,760 2,084

Arts, entertainment, recreation, accommodation & food servers.

577 818 1,395

Arts, entertainment & recreation 230 206 436

Accommodation & food services 347 612 959

Other services (except public administration) 571 437 1,008

Public administration 1,181 1,186 2,367

MASON COUNTY DEMOGRAPHIC PROFILEMason County Demographics for 2005 and

Projections for 2010Population (2005)

  Total Percentage 2005 Population 54,163

Population (2010)  Total Percentage %2010 Population 58,747 1.1%

Sex (2005)  Total Percentage Male 27,872 51.5%Female 26,291 48.5%

Sex (2010)  Total Percentage Male 30,107 51.2%Female 28,640 48.8%

Age Distribution (2005)  Total Percentage 0-4 2,748 5.1%5-9 2,930 5.4%10-19 7,171 13.2%20-29 7,259 13.4%30-39 6,509 12.0%40-49 7,907 14.6%50-59 7,392 13.6%60-64 2,986 5.5%65+ 9,261 17.1%

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Age Distribution (2010)  Total Percentage 0-4 3,045 5.2%5-9 2,969 5.1%10-19 6,833 11.6%20-29 8,357 14.2%30-39 7,076 12.0%40-49 7,677 13.1%50-59 8,620 14.7%60-64 3,572 6.1%65+ 10,598 18.0%

Race Distribution (2005)  Total Percentage White 48,185 89.0%Black 619 1.1%American Indian 1,879 3.5%Asian 634 1.2%Pacific Islander 219 0.4%Other 1,064 2.0%Multi-Ethnic 1,563 2.9%Hispanic 3,014 5.6%

Race Distribution (2010)  Total Percentage White 52,545 89.4%Black 652 1.1%American Indian 1,869 3.2%Asian 746 1.3%Pacific Islander 217 0.4%Other 1,337 2.3%Multi-Ethnic 1,381 2.4%Hispanic 3,670 6.2%

2005 Labor Force Status  Total Percentage Labor Force 23,990Employed 22,108 92.2%Unemployed 1,714 7.1%In Armed Forces 168Not In Labor Force 20,398

2010 Labor Force Status

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  Total Percentage Labor Force 26,389Employed 24,329 92.2%Unemployed 1,880 7.1%In Armed Forces 180Not In Labor Force 22,442

2005 Education Attainment  Total Percentage Population Age 25+ 37,418< Grade 9 1,374 3.7%Grade 9-12 4,841 12.9%High School 11,733 31.4%Some College 10,064 26.9%Assoc Degree 2,715 7.3%Bach Degree 4,604 12.3%Grad Degree 2,087 5.6%

2010 Education Attainment  Total Percentage Population Age 25+ 41,765< Grade 9 1,442 3.5%Grades 9-12 5,060 12.1%High School 13,298 31.8%Some College 10,470 25.1%Assoc Degree 3,169 7.6%Bach Degree 5,769 13.8%Grad Degree 2,557 6.1%

2005 Household Income Distribution  Total Percentage <$10 K 1,970 9.2%$10-$20K 2,468 11.5%$20-$30K 2,732 12.7%$30-$40K 2,685 12.5%$40-$50K 2,823 13.2%$50-$60K 2,232 10.4%$60-$75K 2,493 11.6%$75-$100K 2,203 10.3%> $100K 1,826 8.5%

2010 Household Income Distribution  Total Percentage

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<$10 K 2,105 8.9%$10-$20K 2,377 10.1%$20-$30K 2,760 11.7%$30-$40K 2,592 11.0%$40-$50K 2,685 11.4%$50-$60K 2,665 11.3%$60-$75K 2,573 10.9%$75-$100K 2,860 12.1%> $100K 3,023 12.8%

2005 Size of Household  Total Percentage 1 Person 5,281 24.6%2 Person 8,798 41.1%3 Person 3,104 14.5%4 Person 2,601 12.1%5 Person 1,077 5.0%6+ Person 385 1.8%

2010 Size of Household  Total Percentage 1 Person 6,119 25.9%2 Person 9,812 41.5%3 Person 3,378 14.3%4 Person 2,849 12.1%5 Person 1,031 4.4%6+ Person 337 1.4%Source: Applied Geographic Solutions, Thousand Oaks. CA

© 2004 Washington State Business and Project Development, Department of Community, Trade & Economic Development128 10th Avenue SW, Olympia WA 98504-2525 (360) 725-4100  

CITY/TOWN POPULATION AS OF 2003Shelton Belfair Allyn8,545 10,046 700

2002 AVERAGE MONTHLY EMPLOYMENT & TOTAL WAGES IN COVERED EMPLOYMENTIndustry Employers Average

Number of Employees

Percentage of Total

Wages Paid Percentage of Total

Agriculture, Forestry, Fishing * * * * *

Mining * * * * *

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Construction 207 655 5.30 $21,211,981 6.29

Manufacturing 88 1,897 15.35 68,036,432 20.17

Trans., Communication, Utilities

48 279 2.26 7,622,075 2.26

Wholesale Trade 33 429 3.47 9.439,664 2.86

Retail Trade 205 2,056 16.63 35,238,995 10.84

Finance, Insurance, Real Estate

83 418 3.38 10,871,411 3.22

Services 671 1,946 15.74 36,555,765 10.84

Government 100 4,391 35.52 142,418,607 42.23

Other 85 290 2.35 5,860,478 1.74

Total 1,520 12,361 100.00 $337,255,408

100.00

An entry of "*" indicates data suppressed for confidentiality. The sum of the "*" entries equals the entry for "Other."

STATE PUBLIC ASSISTANCE PROGRAMS FOR FISCAL 2003

Program Total GrantsMonthly Average

Percentage of Population

Served

Rank by Percentage Population

Temporary Assistance to Needy Families (TANF)

$3,350,934 1,433 2.85 13

Diversion 89,120 18 0.04 8

Consolidated Emergency Assistance Program (CEAP)

1,727 2 0.00 9

Refugee Assistance - - - -

Food Stamps 3,944,485 3,898 7.77 20

Medical Assistance $29,828,114

9,330 18.59 19

2000 Commuting Patterns of Mason CountyResidents Commuting to Workplace Number of WorkersMason County, WA 10,802Thurston County, WA 2,841Kitsap County, WA 2,744King County, WA 1,003Pierce County, WA 860Grays Harbor County, WA 408Los Angeles County, CA 18San Mateo County, CA 12Nonresidents Commuting to Mason County Number of Workers

Thurston County, WA 1,597Kitsap County, WA 611

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Grays Harbor County, WA 337Pierce County, WA 303Clallam County, WA 17

Thurston County Labor Area Summary State government is and will likely remain the primary employer in Thurston County. This sector generates a tremendous number of jobs and equally enormous amounts of income. The region economy obviously can be identified as the Washington state capital. In fact, one of the strong clusters of business activity centers around the government’s legislative process. State government accounts for nearly 45 % of the county workforce within both the private and the public sectors. This impact ripples far beyond the confines of the capitol campus. State government workers and their families are largely responsible for generating the consumer demand that has promoted correspondingly strong growth in the county's retail and service sectors.

The preliminary January 2007 data is out for Thurston County, and there were few surprises in the numbers. January non-farm wage and salary employment declined from December by 1,600 jobs to a preliminary total of 98,800. The post-holiday blahs contributed to the decline, Retail Trade – as expected – cut 700 paychecks from the payroll. Other sectors cutting jobs were Professional and Business Services (-200), and Leisure and Hospitality (-200). The Construction grouping, a victim of the time of year and the weather, cut 300 jobs over the month. Over the year, non-farm jobs have increased by 3.0 % or 2,900 jobs. (The statewide rate of growth from January to January was 2.5 %). The detail shows that 2,000 of these jobs were counted in the Service Providing sector, with 900 more in the Goods Producing side. The Trade category (+800), and Government (+500), accounted for much of the Service gain, as Financial Activities (+200), and Professional and Business Services (+100) made smaller contributions. On the Goods side, the Construction category added 600 paychecks from January to January, as Manufacturing produced 300 more jobs than January 2006.

The January preliminary unemployment numbers showed a rising unemployment rate from December 2006. The January 2007 numbers show unemployment climbing 5.4 %, up from 4.5 in December, and above the 4.8 % posted last January. The detail shows 119,900 county residents at work as 6,800 actively pursued job opportunities. In January 2006, there were 118,200 counted as

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employed as 6,000 were looking for work. Statewide, the unemployment rate went up from December’s 5.0 % to 5.9 % in January (preliminary). Last January, the statewide unemployment rate was 5.5 %. Washington's unemployment rate dipped to a record low of 4.6 % last month, the state Employment Security Department said Tuesday. That's the lowest since the state began keeping records in their current form more than 30 years ago. Civilian Labor Force and Unemployment Rate for Thurston County in March of 2007 is 4.4 %, which is .2 % lower than the state’ record low of 4.6 %. The total labor force is 127,700 number of employed is 122,000 and the number of unemployed is 5,600.

While the over-the-month numbers were strongly influenced by seasonal factors, the over the year comparisons in non-farm employment show a positive turn which should be maintained into springtime.

Labor Market Information

for Thurston County/*UPDATED WITH ***QCEW DATA: September 2006 As of March, 2007

        Change

(Numbers in thousands) Preliminary Revised Revised Jan-07 Feb-06 Feb-06

Employment by Place of Residence Feb-07 Jan-07 Feb-06 Feb-07 Feb-07 Feb-07%

   Civilian Labor Force 127.4 126.7 124.7 0.7 2.7 2.2%

      Resident Employment 120.9 119.9 118.3 1.0 2.6 2.2%

      Unemployment 6.5 6.8 6.4 -0.3 0.1 1.6%

      Unemployment Rate 5.1 5.4 5.1 -0.3 0.0

Employment by Place of Work (**NAICS Industry Titles)

TOTAL NONFARM 99.7 98.5 97.0 1.2 2.7 2.8%

TOTAL PRIVATE 62.3 61.5 59.7 0.8 2.6 4.4%

GOODS PRODUCING 9.3 9.1 8.3 0.2 1.0 12.0%

 NATURAL RESOURCES, MINING & CONSTRUCTION 5.9 5.8 5.3 0.1 0.6 11.3%

 MANUFACTURING 3.4 3.3 3.0 0.1 0.4 13.3%

SERVICES PRODUCING 90.4 89.4 88.7 1.0 1.7 1.9%

 PRIVATE SERVICES PROVIDING 53.0 52.4 51.4 0.6 1.6 3.1%

 TRADE, TRANSPORTATION, WAREHOUSING, & UTILITIES 16.0 16.0 15.1 0.0 0.9 6.0%

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        Retail Trade 11.1 11.0 10.4 0.1 0.7 6.7%

    FINANCIAL ACTIVITIES 4.1 4.1 4.0 0.0 0.1 2.5%

    PROFESSIONAL and BUSINESS SERVICES 7.6 7.5 7.4 0.1 0.2 2.7%

    LEISURE & HOSPITALITY 8.0 7.9 8.0 0.1 0.0 0.0%

    GOVERNMENT 37.4 37.0 37.3 0.4 0.1 0.3%

        Federal Government 1.0 1.0 1.0 0.0 0.0 0.0%

        State Government 24.8 24.6 24.8 0.2 0.0 0.0%

            State Government Educational Services 2.4 2.3 2.3 0.1 0.1 4.3%

        Local Government 11.6 11.4 11.5 0.2 0.1 0.9%

            Local Government Educational Services 6.4 6.2 6.7 0.2 -0.3 -4.5%

Workers in Labor/Management Disputes 0.0 0.0 0.0 0.0 0.0 0.0

**North American Industry Classification System. ***QCEW = Quarterly Census of Employment and Wages

Jim Vleming, Regional Labor EconomistPO Box 9046, Mail Stop: 46000

Olympia, WA  98507-9046Phone: (360) 438-4821FAX: (360) 438-4846jvleming@esd.wa.gov

Thurston County Overview Olympia, as a the primary metropolitan area within Thurston County, was recently identified in an article in Forbes Magazine as the tenth best city in the nation for business and careers. Thurston County has experienced a 19.4 % gain Industry Employment Growth since 2001. As the state capitol, government has given the community a stable economy. In recent years, private industry and other enterprises have begun to thrive as a result.

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State employment is the largest employer, accounting for over 23,000 full and part-time jobs. State worksites have experienced consolidations and shifts in location over the past several years. Between 1994 and 1998, state employment in Olympia grew from a 62 percent share to a 66 percent share, but then declined to its current 53 percent share. Over this same time, Lacey’s share in state employment was relatively stable between 1994 and 1998 at 13 percent and 12 percent respectively, and had climbed to 16 percent for the most recent set of numbers. State employment in Tumwater has an inverse relationship to Olympia, that is, it saw a decline in its share of state employment between 1994 and 1998, and then experienced an increase in its share, moving up to 26 percent. In absolute numbers of growth and decline by jurisdiction, Lacey has seen an increase of 36 percent, Olympia has experienced a 2 percent decline and Tumwater has experienced a 46 percent increase. These changes in siting for the largest employer in the region result in mobility impacts for many employees and potential employees. State agency worksites located on the Capitol Campus and other areas in the urban core enjoy a high level of transit frequency. These areas are also supported by multi-modal facilities, such as sidewalks and bike lanes, broadening mobility options. When state employment chooses to move to the fringes of the urban cores; transit frequency and multi-modal amenities will decrease. Local government, including school districts, is the second largest employer. The same transportation issues that arise from siting of state employment away from the urban core apply to the remote placement of school districts.

The next largest employer is Providence St. Peter Hospital. Group Health Cooperative and the Columbia Capital Medical Center are also among the top ten employers in Thurston County. Although these facilities are located close to urban centers and have decent transit service, the 24/7 operations make the use of commuting alternatives. Not only is state government an important employer in Thurston County, there are also an abundance of local, regional and federal employers located in Thurston County. Fort Lewis, home of the Army’s First Corp, is located just minutes north of Thurston County and is the most requested assignment of active duty members. Additionally, the Navy, Air Force, National Guard and Coast Guard all have military bases within commuting distance. Many military families choose to make their homes in this County. While husbands and wives are serving at Fort Lewis their families including spouses and older children contribute to the local economy both as civilian employees and consumers of services and products. Government provides 37 % of the County’s employment opportunities. Another 10 % of the county’s employment opportunities are generated by services and products provided state workers and entities.

Tribal Government has become a major regional economic force, as the fourth largest employer in Thurston County. Chehalis tribal enterprises, including the Lucky Eagle Casino, Chehalis Tribal Construction, Eagle’s Landing Hotel and several convenience stores, employ nearly 600 people, with an additional 150 employed in tribal government and community services. In 2007, the Tribe is scheduled to open a 39-acre Great Wolf Lodge Resort and Conference Center in Grand Mound, creating a new regional destination and employment center. The Nisqually Indian Tribe employs approximately 175 people in tribal government and community services, with total employment reaching 650 with the opening of the expanded Red Wind Casino in 2004.

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Small business also plays a major role in the region’s employment. Countywide, only 11 entities (including state government) employ over 1,000 workers, accounting for 18 percent of employment. The majority of firms – 77 percent – employ less than 10 workers, but account for 14 percent of the workforce.

Currently, one in four workers commutes outside the region to work, more than travel to Thurston County for employment. These outbound commuters are projected to represent an even higher percentage of the labor force by 2025. Outbound commuters are expected to grow from 26 percent of the civilian labor force in 2005 to 34 percent by 2030. The reasons for this outbound commute are largely driven by the availability of jobs and income potential. Thurston County’s job market pales in comparison to the volume of work and higher compensation available in King County and other communities to the north. Certain employment sectors are expected to outpace others as we look to the future. In 2030, for example, projections show 29,100 jobs in the Retail Trade sector and 62,000 in the Services sector. These sectors, which include restaurant, retail, consumer and health services, often provide low-wage employment with shift work outside the 8:00 a.m. to 5:00 p.m. hours. This results in continuing transportation challenges even as job opportunities grow.

Most people are also traveling increased distances for jobs and other destinations. Daily vehicle miles traveled per driver is forecasted to increase to 38 miles per day by 2025. More travel and more miles also equate to more automobiles. In 2000, 24 percent, or one in four Thurston Region households owned three or more vehicles. However, in the rural communities and among low-income families, vehicle ownership is more of a challenge, with 10.3 percent of Yelm’s population and 12 percent of residents of the Nisqually Indian Reservation reporting in the 2000 Census that no vehicles are available.

Thurston County is home to more than 231,000 residents.  It is projected that 255,000 residents will live in the county by 2010. Nearly 140,000 residents live in the more urban north county areas in and around the cities of Lacey, Olympia, and Tumwater. It is among the fastest growing counties in the Pacific Northwest. Today, its steady economy, excellent educational opportunities, access to transportation corridors and providers, and abundance of social organizations makes Thurston County a top choice for those looking to relocate their families and businesses. Between 2005 and 2006, it had a 3.1 % growth rate. The population growth has little to do with increased birth rates.  Instead, the majority of the County’s population increase has been due to the migration of people into the county. This continued migration is the result of Thurston County's relatively stable economy and exceptional quality of life. The relatively low cost of living, award-winning educational opportunities, and lifestyle available to residents of this county combined with the area’s competitive cost of doing business.

Olympia's workforce surpasses much of the nation in educational attainment. Of adults aged 25 years or older in 2000, 91.6 percent of Olympians had obtained a high school diploma, compared to the national average of 80.4 percent. That discrepancy is even greater in terms of college education, with 40.3 percent of Olympia's residents earning a bachelor's degree or higher, while only 24.4 percent did so across the United States as a whole. As this trend continues throughout 2007, vocational and distance learning universities are expanding into

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the county. Phoenix University, Axia, and Chapman college are in the process of recruiting employees, faculty and students to attend graduate degree programs.

After years of struggling with an identity as a failing bastion of log exporting, the Port of Olympia reported its first profitable year in nearly a decade with a surplus of $400,000 in 2004. The turnaround was primarily due to diversification into such bulk commodities as metals and limestone, and the controversial move into military shipments to support the war in Iraq. The 60-acre, deepwater port offers three berths, a U.S. Customs bonded warehouse, and a cargo yard for breakbulk, bulk, rolling stock, and containerized cargoes. The Port of Olympia is also the site of Foreign Trade Zone #216, an area where foreign goods bound for international destinations can be temporarily stored without incurring an import duty.

The Port of Olympia owns and operates Olympia Regional Airport, a general aviation-transport facility for corporate, commercial, and recreational users. The airport is 20 minutes by air to the Seattle-Tacoma International Airport and 50 minutes away from Vancouver, B.C. Nearly 90 miles of active rail lines lie in Thurston County. Burlington Northern Santa Fe, Union Pacific, and the Puget Sound & Pacific Railroad serve the area, with the Tri-City & Olympia Railroad also serving the Port of Olympia.

Two words best describe the business climate found in Thurston County's economy: Emerging Opportunity. In part, this is due to the county’s strategic location at the mid-point between the major metropolitan areas of the central Puget Sound to the north, and Portland, Oregon to the south. Within the last three years, the Puget Sound region has awakened to the incredible opportunity in Thurston County. The county’s infrastructure can provide services and access throughout the entire state, and ultimately the west coast of the United States. Our region’s major north-south artery, Interstate 5, traverses the entire county offering access points to vibrant communities, emerging industrial and commercial business parks, and access to the state’s major recreational opportunities.

Thurston County has experienced growth in its population, skilled workforce and economic development as a result. In Thurston County, total employment in 2004 stood at 120,592 jobs. Wage and salary employment, with 98,199 jobs, accounted for 81 % of total county employment. Proprietors’ employment stood at 22,393, making up 19 % of the county’s total employment. Private sector employment comprised 69 % of total employment, while public sector employment made up 30 %, and farm employment 1 %.

In the last several years, the county has noticed a dramatic shift in the regional diversification of its workforce. Professional services rank as one of the leading components of the county’s industry. These services incorporate technical Internet and web design firms, and legal and consultant companies. Other strong elements include:

Warehouse and distribution businesses taking advantage of the excellent transportation links

Medical services providing emergency and maintenance health care for the surrounding five-county region

Traditional manufacturing captures a significant piece of their specific global market

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An emerging life sciences community growing in the region within the last five years

These services also required a highly educated and skilled labor force. Olympia's workforce surpasses much of the nation in educational attainment.

As of March 2007, Thurston County Wages have increased by 14.4% since 2001.

Labor force projections, completed by Thurston Regional Planning Council as a part of the regional population forecast, project an increase in resident civilian labor force (workers) in Thurston County of 57 % between 2005 and 2030. Some part of the employment (jobs) needed to accommodate this increase is expected to be in Thurston County, with a projected 52 % increase in the number of local jobs available during this 25 year period. It is also anticipated that the trend in net outbound commuters will continue during this time. Currently, Thurston County has more people commuting out of the county to work every day than commuting into the county, resulting in a net outbound commute factor for labor force projections. Outbound commuters are expected to grow from 26 % of the civilian labor force in 2005 to 34 % by 2030.

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The manufacturing sector has been in decline in recent years and currently represents less than 3.5 % of the Thurston County workforce. The announcement by the Miller Brewing Company and the subsequent closure of the facility on June 30, 2003 had a serious impact on this sector. All American Bottle Water Corporation, a Nevada-based startup company, purchased the brewery; however, the company’s plans to start the first of its two bottling lines sometime in 2005 have never materialized.

One advantage that Thurston County retains, however, is a comprehensive education system. No other county in the South Puget Sound region can match the primary, secondary and post-secondary system available for talent development currently operating in Thurston County. Though a fair degree of labor will continue to be mobile, the local presence of a skilled and educated labor force reduces the cost of doing business.

Compared to other regions in the state, Olympia and Thurston County are home to a relatively small number of technology companies. To attract them, economic development officials promoted the area's telecommunication infrastructure, low property price, and educated workforce. In 2004, Univera Inc., a biotechnology firm, relocated to Thurston County from Colorado. Other recent additions to the area are Reach One, an Internet service provider, and Fast Transact, a processor of credit card transactions. The health of Thurston County’s economy is reflected in these recently planned expansions and developments:

Univera, a biotechnology company making wellness products from the aloe plant recently opened operations and employs over 100 individuals. They have made an estimated investment of $18 million in expanding their operations.

Calisons Mint recently completed their corporate headquarters and plant consolidation facility in the Hawks Prairie area of Lacey. This represents an estimated investment of $24 million.

Target will construct a 328,000 foot expansion to their existing warehouse.

Lumberman's will locate their division headquarters in the Hawks Prairie area.

A new retail development on Marvin Road contains 400,000 square feet of retail space including a Home Depot and Costco store.

South Puget Sound Community College is currently under construction with a 62,000 square foot facility for the Humanities and General Education programs.

Providence/St. Peters recently completed a new emergency facility and is permitted for a 100,000 square foot expansion of their current facility.

Cabela’s plans to build an 185,000 retail facility in Lacey with a planned opening in the fall of 2007.

Red Wing Casino has renovated its facilities for $31 million.

The Westfield Shoppingtown/Capitol Mall has undergone expansion.

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State Government has invested $35+ million in Office Buildings totaling 60,000 square feet.

The Chehalis Tribe and Great Wolf Resort plan a joint partnership plan to invest in a build a new $100 million facility.

These, in addition to many other office and retail developments and expansions, indicate that business is improving in Thurston County. The entire county is transforming as it continues to grow and communities develop. While undergoing this change, each of the communities has proactively managed growth to ensure and maintain an excellent place to work and live. Thurston County is the Workforce Development Area's most significant benefactor with its vital, growing and flexible/diverse economic infrastructure. Through the past decade it has continued to create a stabilizing influence and employment opportunities in a region where other counties and communities have been experiencing high rates of unemployment. As of October of 1999 the unemployment rate was 4.7 %; only two tenths of one % below the state average. While Thurston County was impacted by the recession that began in 2000, the county did not feel the impact to the same degree as the other counties in the Pacific Mountain Workforce Area or the state as a whole. Since Thurston County was less affected by the recession, it was able to recover faster than the other counties in the state. In March of 2004, the county’s unemployment rate was 6.5 %. In March of 2005, it had improved to 5.1 while the state average remained at 8.2 %. By March 2007, the preliminary unemployment figures indicate a significant improvement. The rate dropped from 5.4 % in January 2007 to a preliminary unemployment estimate of 4.4 % in March 2007.

Thurston County Industry Employment Projections

Government/Education Since government employment tends to be directly affected by state revenue collections and the budget cycle, changes in public employment tend to lag behind changes in the public sector. State government's stable employment pattern during the economic recession helped to insulate the community from much of the decline that impacted most of the state. According to the Thurston Regional Planning Council, state government was the county's second-largest industry behind services in 2000, employing 22,750 people. In addition to the jobs it supports directly, state government also supports the economy by attracting tourists, as does the region's gambling industry. However, as the local areas move through recovery periods, the government sector has been slow to respond to the more favorable conditions the private sector has been enjoying. As a result, employment growth in the public sector was flat over the 2001-2004 period. The lone bright spot to date was State Government, which added 400 jobs from December of 2006.

Thurston County’s economy is obviously highly identified with its role as Washington’s state capital. In fact, one of the strong clusters of business activity in Thurston County centers around the government’s legislative process. State government accounts for nearly 45 % of the county’s workforce (8% of this percentage is employment in the private sector that support government activities). Construction of new office buildings for state government is in progress providing job seekers opportunities in construction

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as well as employment with the State. Office buildings such as the $35-million Cherry Street Plaza being build in Tumwater will provide 60,000-square-foot of space.

Educational institutions, a second source of government employment provide employment opportunities throughout the county. There are a growing number of these institutions providing educational opportunities for students from kindergarten through college located in Thurston County. South Puget Sound Community College, in response to a growing student body and programs offerings, is expecting to begin three major projects in July of 2007:  1) construct a 53,338 building to house science labs and classrooms ($25.87M); 2) expand and renovate the College Center ($10.36M); and design a new library and classroom building ($3.27M.)  They will also complete a campus master plan that will guide the build-out of their Mottman Road campus and the initial development of the Marvin Road campus.

Federally employment opportunities are also available in Thurston County. Fort Lewis, home of the Army’s First Corp, is located just minutes north of Thurston County and is the most requested assignment of active duty members. Additionally, the Navy, Air Force, National Guard and Coast Guard all have military bases within a 40-mile radius. Expect average growth in the near future.

Manufacturing The closure of the Tumwater Brewery in June of 2003 put a big dent in the county's limited manufacturing base. Some recovery in durables manufacturing has been occurring of late, but not enough to offset the losses experienced in 2003. Between 2002 and June of 2004 this sector lost 175 jobs. With less than 3.5 % of the workforce in manufacturing jobs, it is a small but very important sector of the Thurston County economy. Local economic development officials have been working diligently to reverse the downward trend of this sector. State economists forecast manufacturing will be a flat economic segment this year. "We'll gain one hundred jobs in this category this year if we're lucky," according to state economist, Jim Vleming. He foresees slow, if any growth, for South Sound manufacturing in the years ahead. Environmental concerns are an issue that could slow job growth in this category. "It must be light manufacturing," Vleming said. "As a society, we don't seem to want any pollution or noise." Based upon these predictions, there were 4,000 workers employed in manufacturing in 2005. By 2015, there will only be 4,500 based upon present trends.

Manufacturing continued to be a major economic segment in the early 2000s, though a set-back was experienced with the closure of the Miller Brewing plant in June 2003. Wood and food processing segments are stagnating, while plastics, industrial supplies, and machinery are experiencing growth. Area companies in these growth segments include Dart Containers Inc., Albany International Corp., Big Toys Inc., and Amtech Corp. Another innovative manufacturing firm is the Olympia based helicopter company, Northwest Helicopters. Established in 1985, Northwest Helicopters has grown to be the largest helicopter company in the state and one of a handful like it in the nation that refurbish helicopters. For this reason, it competes well in a global marketplace. For most of its history, the company has serviced and refurbished helicopters used on construction sites, in fighting fires or as charters. Since the 1960s the company has refurbished vintage and surplus U.S. military helicopters for use by

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other nations. The firm sells the refurbished helicopters for $500,000, while a new helicopter would cost a buyer $4,000,000. The company employs 30 highly skilled employees. “It is one of those companies that is based in Thurston County that has a much larger reach than Thurston County proper,” states Michael Cade, executive director of the Economic Development Council of Thurston County. Another local manufacturer that has created a global market for its products is the Winsor company. It specializes in creating porcelain enamel signs and displays with full-color photographs and graphics. Winsor’s work is found along The Percival Landing boardwalk as well as throughout nation parks and museums worldwide. In 2004 the company bought a building at Mottman Industrial Park and expanded from 14,000 to 20,000 square feet. It now produces more than 4,000 panel displays a year and employs a staff of 17 skilled workers.

The South Manufacturers' Alliance (SSMA) was formed in 2006 as an effort to promote and retain manufacturing employment and interests in the South Sound region.  The alliance is a partnership with local manufacturers in collaboration with the EDC, South Puget Sound Community College, Port of Olympia, and Pacific Mountain Workforce Development.  The Alliance should have a positive impact on growth within the manufacturing sector.

The search and demand for alternative fuels such as ethanol and biodiesel has resulted in steady business for a West Bay manufacturer of steel tanks. The company is the Olympia division of Brown-Minneapolis Tank Northwest, a New Mexico-based company that has operated here since 1998, business manager Rollie Irwin said. The ethanol and biodiesel industries have spurred the need for more tanks to hold these fuels, said Irwin, who added that manufacturing plants to produce those fuels are springing up all over the Midwest. BMT leases a 13-acre site on West Bay that has about 30,000 square feet of manufacturing space and a facility for painting tanks. Before BMT moved to the site in 1998, it was home to Reliable Steel, a company whose origins date back to the 1940s. He estimated that there is a backlog of orders worth $60 million, of which 30 % is in Olympia. Irwin also hopes to increase annual gross sales locally to between $12 million and $15 million, up from the current $10 million. In return, BMT employees, who are represented by the Boilermakers Union Local 104 in Seattle, are paid an average wage of about $17 an hour. In a time when send manufacturing jobs out of the country, it’s great to see (BMT) thriving. Big Toys, a manufacturer of playground equipment here in South Sound for nearly 20 years, has reshaped its business plan in a way that is good for the business, the consumer and the environment. Using recycled products is an environmentally friendly approach to manufacturing. Big Toys responded to the potential consumer problem with a win-win solution, making their products more sustainable and friendlier to the health of children and the environment. Slow growth is projected.

Utilities/Energy In Thurston County, private utilities are currently provided by the following companies:

Electricity: Puget Sound Energy Natural Gas: Puget Sound Energy Standard Telephone: Tenino Telephone Company Qwest Communications

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YCOM Networks Cellular Telephone: Various Providers Cable: Comcast

Washington State's oldest and largest energy utility, with a 6,000-square-mile service territory stretching across 11 counties, Puget Sound Energy (PSE) serves more than 1 million electric customers and 713,000 natural gas customers, primarily in the Puget Sound region of Western Washington. PSE, a subsidiary of Puget Energy (NYSE: PSD), meets the energy needs of its growing customer base through incremental, cost-effective energy conservation, low-cost procurement of sustainable energy resources, and far-sighted investment in the energy-delivery infrastructure. Puget Sound Energy filed for a modest increase in its electric rates to recover the costs of the company's newly acquired power plant in Goldendale, Wash., and higher wholesale power costs related to volatile natural gas prices and expiring purchase contracts. The filing requests the Washington Utilities and Transportation Commission (WUTC) to approve an overall 3.7 % rate increase effective Sept. 1, 2007, for PSE's 1 million electric customers. A typical residential bill (based on 1,000 kilowatt-hours of power usage) would increase by 4.09 %, or $3.17 per month. Natural gas rates are not affected. In February 2007, PSE completed its purchase of the 277-megawatt power plant. The utility bought the facility to narrow a 1,500-megawatt gap projected by 2015 between PSE's secured power supply and its customers' rising demand for electricity. PSE acquired the two-year-old power plant in a bankruptcy proceeding for $120 million — roughly one-third of its original development cost. The natural gas-fired co-generation plant is one of the most efficient and cost-effective power generators in the western United States.

Qwest Communications Telephone Company is a primary utility company in the county. There are three Qwest Communications central switching offices (CO) serving Thurston County. One is located in the unincorporated county, and the other two are located in Olympia and Lacey. The three companies work together to provide service to that part of the unincorporated area that is part of Qwest’s territory. From the switching stations are main cable routes, branch feeder routes and local loops that provide dial tone. Tenino Telephone Company has one switching station located at company headquarters in Tenino. The company serves not only the City of Tenino but also part of the unincorporated county around the city. YCOM Networks has one switching station located at company headquarters in Yelm. The company serves part of the unincorporated county as well as the City of Yelm.

Tourism This industry created 500 county jobs in 2006 and stands to continue growing. In 2006, the leisure and travel industry employed 8,200 workers. The sector showed an increase of 400 from the previous year. South Sound's leisure industry has been healthy for several years. The Olympian reported in 2005 that tourism spending in the area jumped from $153.4 million in 1998 to $209.7 million in 2003. The annual sessions of the state legislature in the winter and spring mark the first tourist season of the year, with summertime recreation and attractions, including tours of state buildings. The industry has grown every year since 2001, from 6,500 jobs to 8,200 in 2006. Annual travel spending in Thurston County was $240.4 million in 2005.

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The new Cabela’s store will generate Tourism as well as retail sales. Market projections anticipate the new store will capture 3-4.5 million visitors in its first year of operation. Roughly 40 % of the visitors to the store will be from out of state. The Chehalis Tribe and Great Wolf Resorts in a joint development partnership will develop 40 acre site for a hotel and conference center which will:

Anticipated completion date of first-half of 2008 Total development will be 442,000 square feet Will include 8-story 393-room full service hotel 56,000 square foot indoor water park 30,000 square foot conference center 500 full time and part time jobs Anticipated to draw 300,000 visitors annually Projected to generate $92 million in visitor spending

In 2004, the Red Wind Casino completed a $31 million expansion, and the area's other tribal casinos completed similar upgrades.

Wholesale/Retail Trade Wholesale and retail trade represents the third largest sector of the Thurston County economy (behind government and services). About 33,125 workers are employed in these industries as of June of 2004. This is a 9% increase in the sector since 2002. Growth of sales has developed as South Puget Sound becomes a center of trade. Retailers such as Sports Warehouse located in Lacey and Cabala’s, which is planning to move into the area are providing employment opportunities for job seekers in the area. Cabela’s plans to develop major destination retail operation in the Lacey –Hawks Prairie – Lacey Gateway project. The new Cabela’s store will be 185,000 square feet, and represent a development cost of $40 million. It is scheduled to open fall of 2007. The new store will employ approximately 350 people and generate approximately $7 million in state and local tax annually. The Cabela's site, for example, has about 450 acres of vacant land. Lacey's strategy is to shift some of the burden of paying for the city's growth, and the need for more services, from home owners to retailers. The retailers, in turn, know of Lacey's growing residential base and want to cash in on all of the new residents. The city has a population of about 66,000 in its urban growth area. It is projected to grow to about 120,000 by 2025.

Nearly 750,000 square feet of new retail operations have established stores in the county within the last 2 years. The Westfield Shoppingtown/Capital Mall has been expanded and renovated, and is pursuing the construction of a 16-screen movie complex. The growth fueled the creation of 400 new retail jobs in the county in 2006. In 2005, approximately 19,650 individuals were employed in retail related activities. By 2015, it is estimated by state economists that 21,750 workers will be gainfully employed in the retail industry.

It is not uncommon for the county to draw customers from Grays Harbor, Mason and Lewis counties. But competition for the regional market is getting stiffer as large businesses, especially retailers; consider sites near Shelton, Centralia, Aberdeen and elsewhere where the populations are growing and the cost of doing business remains low compared to Thurston County. This sector received a boost with the opening of large warehouse and distribution facilities for Target and Home Depot and will

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continue to grow with retail expansions and new developments opening. This regional development has impacted all of the five counties in the PMWDA. There is a strong potential for additional growth.

Trade, Transportation, and Utilities There has been an increase in this sector of 300 workers between 2002 and June of 2004. Much of Thurston County's commerce (trade) is generated at the Port of Olympia, which operates a marine terminal and Olympia Regional Airport. A trend toward environmental challenges of port growth projects could slow these projects down, or even cancel them. Swanton Marina, also operated by the port, has a waiting list of customers. But environmental challenges promise to slow improvements to the airport's runway and an effort to recruit a Weyerhaeuser log export business to the Olympia waterfront from Tacoma.Weyerhaeuser, for example, was supposed to begin log exports at Olympia in 2006. But environmental challenges delayed that opening until at least the second half of this year. According to a port spokesperson, Weyerhaeuser would add 36 jobs to a base of 131 port jobs related to tenants that use the marine terminal if the environmental concerns could be addressed and overcome. There is potential for continued growth.

Health Services Thurston County is unique in that, as in retail trade, health care services in the county are among the most comprehensive in Southwest Washington. As a result, the county draws many health care customers from outside its borders. The health care industry makes up approximately one third of the services sector. In 2000, persons age 65 and over constituted 11 % of the total county population. The %age of residents in the county over 65 years in age is expected to climb to roughly 13 % by 2010 and should reach 19 % by 2020. The first of the “baby boomers” will reach 65 in 2011. The ambulatory health care services industry (doctors and dentist offices) is a key portion of this industry employing 3,659 workers or 4.2 % of the workforce. Hospitals follow closely behind with 3,234 workers and 3.7 % of the workforce. Thurston County offers a wide variety of health care facilities:

Providence St. Peter Hospital  Capital Medical Center Group Health Cooperative  Thurston County Public Health  Physicians  Dentists Physical & Occupational Therapists

Providence St. Peter Hospital is a 390-bed, not-for-profit regional teaching hospital founded by the Sisters of Providence in 1887. Located in Olympia, the state capital, Providence St. Peter Hospital offers comprehensive medical, surgical, and behavioral health services. Capital Medical Center is a 119-bed hospital, with one general family practice clinic, serving all of Thurston and surrounding counties. Capital Medical Center is an innovative organization where trust and teamwork come together to respond to the needs of the greater community it serves. Group Health Cooperative, founded in 1947, is a consumer-governed, nonprofit health care system that coordinates care and coverage. Based in Seattle, Group Health and its subsidiary health carriers serve approximately 568,344 members in Washington and Idaho. Thurston County Public Health Department, a government agency, makes a positive, significant, and

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measurable difference in the environmental, physical and mental health, safety and well being of our community.

Thurston County has more than 200 physicians as well as several walk-in clinics and cooperative centers. A few specialty areas are immunology, dermatology, gastroenterology, geriatrics, neurology, ophthalmology, orthopedics and pediatrics. The County has more than 120 dentists as well as numerous dental clinics and family practice centers. A few specialty areas are endodontists, oral surgery, orthodontists, pediatric dentistry, periodontists, and denturists. In addition, Thurston County has more than a dozen physical and occupational therapy clinics. Some specialize in sports, arthroscopic, therapeutics, orthopedic rehabilitation, soft tissue and trauma. As a major metropolitan area, the community also has alternative health providers representing a wide range of specialties.

With the aging of the general population and many in the industry reaching retirement age, the demand for qualified health care workers of all kinds will continue to grow. The Thurston Regional Planning Council projects steady employment growth in health services, from 9,550 in 2005 to 10,800 in 2010 and 12,000 in 2015. This growth in the near future will be limited only by the system's ability to train the specialized workforce. There is a strong potential for growth.

Agriculture/Aquaculture Agriculture, another industry traditional to Olympia, is waning, although production is still higher than in nearby counties. Agriculture developed slowly but steadily during the early years of Thurston County. Small farms sprang up and began producing bacon, milk, cheese, chickens, and wheat. However, the quality of the soil was poor for growing crops, and by the end of the nineteenth century many farmers had turned almost exclusively to dairy farming. By the end of the twentieth century, agriculture claimed only about 2 % of Thurston County’s employment. The 1997 Census of Agriculture reported that blueberries, hay, and corn were the county’s primary field crops, while dairy cows and hens represented the gist of the county’s livestock production. The dairy industry in Thurston County has long been an important part of the area economy. Dairy numbers have decreased dramatically in recent years; however, animal numbers have remained constant. Dairies in Thurston County tend to be confinement operations with feed hauled to the livestock. Truck traffic, delivering feed, and milk pickup are all normal activities associated with dairies. Dairy cattle produce a lot of manure. It must be collected, transported, and applied at agronomic rates to crop and forage fields. There are smells associated with these activities that may be unpleasant, not only to the dairyman, but also to the neighbors.

In 2002 Thurston County produced crops valued at $49 million, and its livestock, poultry, and related products were valued at $65 million. Although the size of farms continues to decrease, the number of farms is actually increasing. There were 1,155 farms operating in 2002. Interest in farming organically has exploded in the last decade. Organic farming is an environmentally responsible method of producing high quality food. Organic farming practices are those that conserve and build the soil, lessen or eliminate pollution, and encourage a more diverse agroecosystem. Consumer groups are beginning to appreciate the nutritional, personal health, and environmental benefits

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associated with organic farming. Many Thurston County farmers are doing so organically these days.

The proof of the rise in small, primarily organic farming enterprises can be found in Olympia’s Farmer’s Market where many small-scale farm operators sell their produce. There are many specialty farms in Thurston County. In some cases, the farmer specializes in one specific crop, for instance, blueberries, sweet corn, or eggs. In other cases, farmers are members of the CSA, or Community Supported Agriculture. This is an arrangement between a farmer and a consumer, where the consumer pays the farmer a flat fee at the beginning of the season and receives fresh, seasonal farm products at agreed upon intervals.

“Few natural resources provide a more fitting symbol of a region’s heritage andenvironment than Washington’s rich shellfish resources.” (Puget Sound Action Team). Thurston County is the heart of the oyster’s kingdom, shared with other bivalves such as the giant geoduck (pronounced “gooey-duck”) and razor clams. Cultural and environmental icons to our regional history, shellfish are also important commercially.

Service Providers and Banking The sector knows as “Providing Services” has been one of the fastest growing sectors in the Thurston County economy. According to the Olympia Chamber of Commerce, there were 7,100 workers providing professional and business services in 2004. This growth rate in the services providing sector has declined in recent years. Between 2006 and 2007, the annual growth rate was only 1.9%. Two import segments of this industry are health services and financial services. Health services have been described in a separate section. Financial services are explored below.

Jim Vleming, a state economist, foresees a "flat" year for the South Sound banking and finance industry. Last year, there was a net reduction of 100 jobs in this category in the county, he said. Mergers in the banking industry and the trend toward online banking could temper future job growth. While 2,700 individuals were employed in banking in 2005, there will be a relatively small increase in employees to 3,250 by 2010.

From 2002 to June of 2004 this sector has grown 9.3 %. This sector includes professionals such as doctors, lawyers and architects. It also includes industries ranging from auto repair to social work. There is strong potential for growth.

Construction Construction including heavy construction represents 7.1 % of Thurston County’s economic base. With interest rates at a near 35-year low, housing starts/remodels remained high in 2003. For the 18-month period ending in June of 2004 the sector experienced a 9 % growth. A slowdown began in the second half of 2006. Sales were up 25 % in May of 2006, but there were small declines in the number of homes sold in the second half of 2006. Other evidence of a slowdown was growing inventories and homes taking longer to sell. Inventories of homes for sale grew last year 35 % compared with 2005, and it took an average of 61 days for a home to sell compared with 47 days in 2005. In 2005, there were 4,250 employed in construction and real estate sales positions. By 2010, that number will increase to 5,050 despite the present housing slow downs. A recent study states that carpenters, construction

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equipment operators, painters and electricians are all in the top 25 occupations with the largest demand-supply gap within the workforce development area. City of Yelm is expected to grow to 8,000 residents within 5 years. Demand should remain strong.

Forestry/Timber As with agriculture, the timber industry is dominated by smaller, family-owned operations. Natural resource based industries including forestry; fishing and mining represent less than 1 % of Thurston County’s economic base. Agricultural processing, however, represents 2.5 %.

Finance, Insurance and Real Estate This sector, including finance, insurance and real estate, represented 4.1 % of Thurston County's non-agricultural employment in 2007. The largest component of this sector in Thurston County is depository institutions, which includes banks, savings and loans, and credit institutions. The second largest component is real estate. This sector has a tendency to expand and contract because of interest rate changes. The cooling of the real estate market and the slowing of new construction may impact this sector. Outlook for the future will depend on interest rates.

THURSTON COUNTY DEMOGRAPHIC PROFILE

Thurston County Demographics for 2005 and Projections for 2010

Population (2005)  Total Percentage

2005 Population 229,500Population (2010)

  Total Percentage 2010 Population 250,695 .9%

Sex (2005)  Total Percentage Male 112,531 49.0%Female 116,969 51.0%

Sex (2010)  Total Percentage Male 123,021 49.1%Female 127,674 50.9%

Age Distribution (2005)  Total Percentage 0-4 12,989 5.7%5-9 13,816 6.0%

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10-19 31,773 13.8%20-29 32,928 14.3%30-39 31,137 13.6%40-49 35,344 15.4%50-59 33,196 14.5%60-64 11,162 4.9%65+ 27,155 11.8%

Age Distribution (2010)  Total Percentage 0-4 13,730 5.5%5-9 13,917 5.6%10-19 31,418 12.5%20-29 35,896 14.3%30-39 33,800 13.5%40-49 35,092 14.0%50-59 38,209 15.2%60-64 15,757 6.3%65+ 32,876 13.1%

Race Distribution (2005)  Total Percentage White 197,099 85.9%Black 5,141 2.2%American Indian 3,237 1.4%Asian 10,981 4.8%Pacific Islander 1,075 0.5%Other 3,640 1.6%Multi-Ethnic 8,327 3.6%Hispanic 11,283 4.9%

Race Distribution (2010)  Total Percentage

White 215,934 86.1%Black 5,388 2.1%American Indian 3,242 1.3%Asian 12,651 5.0%Pacific Islander 1,066 0.4%Other 4,398 1.8%Multi-Ethnic 8,016 3.2%Hispanic 13,070 5.2%

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2005 Labor Force Status  Total Percentage Labor Force 124,035Employed 115,434 93.1%Unemployed 6,393 5.2%In Armed Forces 2,208Not In Labor Force 60,102

2010 Labor Force Status  Total Percentage Labor Force 138,060Employed 128,547 93.1%Unemployed 7,093 5.1%In Armed Forces 2,420Not In Labor Force 66,837

2005 Education Attainment  Total Percentage

Population Age 25+ 153,972< Grade 9 4,099 2.7%Grade 9-12 11,997 7.8%High School 34,829 22.6%Some College 39,771 25.8%Assoc Degree 12,209 7.9%Bach Degree 32,449 21.1%Grad Degree 18,618 12.1%

2010 Education Attainment  Total Percentage Population Age 25+ 173,952< Grade 9 4,267 2.5%Grades 9-12 12,547 7.2%High School 39,349 22.6%Some College 41,208 23.7%Assoc Degree 14,135 8.1%Bach Degree 40,028 23.0%Grad Degree 22,418 12.9%

2005 Household Income Distribution  Total Percentage <$10,000 5,785 6.4%$10-$20,000 8,322 9.3%

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$20-$30,000 9,558 10.6%$30-$40,000 10,227 11.4%$40-$50,000 9,865 11.0%$50-$60,000 9,038 10.1%$60-$75,000 11,642 13.0%$75-$100,000 12,346 13.8%> $100,000 12,996 14.5%

2010 Household Income Distribution  Total Percentage <$10,000 6,054 6.2%$10-$20,000 7,995 8.2%$20-$30,000 9,250 9.5%$30-$40,000 9,605 9.9%$40-$50,000 9,473 9.7%$50-$60,000 9,880 10.1%$60-$75,000 10,878 11.2%$75-$100,000 14,239 14.6%> $100,000 20,093 20.6%

2005 Size of Household  Total Percentage 1 Person 23,808 26.5%2 Person 32,207 35.9%3 Person 14,778 16.5%4 Person 12,483 13.9%5 Person 4,477 5.0%6+ Person 1,446 1.6%

2010 Size of Household  Total Percentage

1 Person 27,142 27.8%2 Person 35,290 36.2%3 Person 15,804 16.2%4 Person 13,433 13.8%5 Person 4,205 4.3%6+ Person 1,247 1.3%

2004 Washington State Business and Project Development, Department of Community, Trade & Economic Development128 10th Avenue SW, Olympia WA 98504-2525 (360) 725-4100  

Thurston County Representative OccupationsEmployees Entry- Experienced Mean

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Occupation Level Wage

Worker’sWage Wage

Accountants and Auditors 2,143 $18.02 $27.16 $24.10Administrative Services Managers

139 $30.25 $44.93 $40.05

Computer Operators 62 $14.99 $17.70 $16.79Computer Programmers 1,245 $22.80 $31.46 $28.57Computer Software Engineers, Systems Software

65 $27.04 $13.09 $33.74

Computer Support Specialists 580 $12.75 $20.79 $18.12Customer Service Representatives

1,825 $11.11 $16.44 $14.66

Executive Secretaries and Administrative Assistants

1,236 $17.01 $26.07 $23.05

Financial Managers 431 $29.36 $45.77 $40.29First-Line Supervisors/Managers of Office & Administrative Support Workers

1,673 $17.04 $25.30 $22.55

First-Line Supervisors/Managers of Production and Operating Workers

652 $16.79 $27.63 $24.01

Industrial Truck and Tractor Operators

1,084 $11.73 $17.72 $15.72

Laborers and Freight, Stock, and Material Movers, Hand

3,153 $9.13 $12.19 $11.17

Machinists 144 $11.70 $19.00 $16.57Maintenance and Repair Workers, General

1,645 $11.73 $18.96 $16.51

Mechanical Engineers 71 $22.54 $36.34 $31.74Operating Engineers & Other Construction Equipment Operators

854 $17.31 $27.12 $23.85

Packers and Packagers, Hand 732 $8.13 $10.49 $9.71Secretaries, Except Legal, Medical, and Executive

2,509 $13.13 $17.91 $16.33

Shipping, Receiving, and Traffic Clerks

576 $9.41 $13.73 $12.29

Source: Employment Security Department- www.workforceexplorer.com

Occupational Wage Data, November 2006

Largest Employers in Thurston County (All Sectors)

Organization (2004) Number of employees

State of Washington 20,000-25,000Local Government 10,000-15,000Providence St. Peter Hospital 1,000-5,000Tribal Government 1,000-5,000Federal Government 500-1,000Group Health Cooperative 500-1,000Columbia Capital Medical Center 100-500Wal-Mart Stores Inc. 100-500St. Martin's University 100-500Costco Wholesale Corp. 100-500

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THURSTON COUNTY OCCUPATIONAL EMPLOYMENT PROFILE

Male Female Total

Employed Civilians 16 years and over 51,665 48,822 100,487

Management, professional & related 18,134 19,445 37,579

Management , business, financial operations 7,648 6,813 14,461

Management (except farmers & farm managers 5,423 3,736 9,159

Farmers & farm managers 206 60 266

Business & financial operations 2,019 3,017 5,036

Business operations specialists 1,098 1,495 2,593

Financial specialists 921 1,522 2,443

Professional & related 10,486 12,632 23,118

Computer & mathematical 2,039 1,034 3,073

Architecture & engineering 2,006 279 2,285

Architects, surveyors, cartographers & engineers 1,575 207 1,782

Drafters, engineering & mapping technicians 431 72 503

Life, physical & social science 947 531 1,478

Community & social services 856 1,269 2,125

Legal 625 807 1,432

Education, training & library 1,611 4,479 6,090

Arts, design, entertainment, sports & media 923 820 1,743

Healthcare practitioners & technical 1,479 3,413 4,892

Health diagnosing, treating practitioners & technical

1,139 2,262 3,401

Health technologists & technicians 340 1,151 1,491

Service Occupations 6,758 8,680 15,438

Healthcare support 274 1,520 1,794

Protective service 1,781 480 2,261

Firefighting, prevention & law enforcement workers including supervisors

1,217 249 1,466

Other protective services including supervisors 564 231 795

Food preparation & serving related 2,038 3,157 5,195

Building & grounds cleaning & maintenance 1,909 924 2,833

Personal care & service 756 2,599 3,355

Sales & office 9,240 17,992 27,232

Sales & related 5,344 4,689 10,033

Office & administrative support 3,896 13,303 17,199

Farming, fishing & forestry 769 363 1,132

Construction, extraction & maintenance 8,736 331 9,067

Construction & extraction 5,110 141 5,251

Supervisors, construction & extraction workers 640 20 660

Construction trade workers 4,437 121 4,558

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Extraction workers 33 0 33

Installation, maintenance & repair 3,626 190 3,816

Production, transportation & material moving 8,028 2,011 10,039

Production occupations 3,468 1,159 4,627

Transportation & material moving 4,560 852 5,412

Supervisors, transportation & material moving workers

76 7 83

Aircraft & traffic control 110 15 125

Motor vehicle operators 2,306 408 2,714

Rail, water & other transportation 350 56 406

Material moving workers 1,718 366 2,084

THURSTON COUNTY INDUSTRY EMPLOYMENT PROFILE

Male Female Total

Employed Civilians 16 years and over 51,665 48,822 100,487

Agriculture, forestry, fishing, hunting & mining 1,469 605 2,074

Agriculture, forestry, fishing & hunting 1,318 581 1,899

Mining 151 24 175

Construction 6,175 688 6,863

Manufacturing 5,356 1,381 6,737

Wholesale Trade 2,099 633 2,732

Retail Trade 5,472 5,272 10,744

Transportation, warehousing & utilities 2,787 906 3,693

Transportation & warehousing 2,451 699 3,150

Utilities 336 207 543

Information 1,279 1,062 2,341

Finance, insurance, real estate & rental & leasing 2,126 3,397 5,523

Finance & insurance 1,250 2,476 3,707

Real estate & rental & leasing 876 921 1,797

Professionals, scientific, management, administration & waste management servers

4,496 3,044 7,540

Professional, scientific & technical service 2,431 2,052 4,483

Management of companies & enterprises 0 0 0

Administrative, support, waste management service 2,065 992 3,057

Educational, health & social services 5,670 15,212 20,882

Educational services 2,876 6,188 9,064

Health care & social assistance 2,794 9,024 11,818

Arts, entertainment, recreation, accommodation & food servers

3,424 4,117 7,541

Arts, entertainment & recreation 995 859 1,854

Accommodation & food services 2,429 3,258 5,687

Other services (except public administration) 2,277 2,306 4,583

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Public administration 8,035 10,199 19,234

CITY/TOWN POPULATION AS OF 2003Bucoda Lacey Olympia Rainier Tenino Tumwater Yelm645 32,240 42,860 1,515 1,495 12,740 3,830

2002 AVERAGE MONTHLY EMPLOYMENT & TOTAL WAGES IN COVERED EMPLOYMENT

Industry Employers Average Number of Employees

Percentage of Total

Wages Paid Percentage of Total

Agriculture, Forestry, Fishing 262 1,741 2.02 $37,10.897

Mining 6 79 0.09 2,900,663

Construction 815 3,645 4.22 122,620,924

Manufacturing 213 3,866 4.48 144,279,688

Trans., Communication, Utilities

209 2,137 2.48 105,431,276

Wholesale Trade 271 2,446 2.83 127,669,927

Retail Trade 1,032 14,849 17.21 278,783,020

Finance, Insurance, Real Estate

436 3,245 3,76 124,213,119

Services 3,215 19,722 22.86 539,454,687

Government 199 34,560 40.05 1,430,891,872

Total 6,658 86,290

100.00 $2,913,354,073

100.00

An entry of "*" indicates data suppressed for confidentiality. The sum of the "*" entries equals the entry for "Other."

STATE PUBLIC ASSISTANCE PROGRAMS FOR FISCAL 2003

Program Total Grants Monthly Average

Percentageof

Population Served

Rank by Percentage of

Population

Temporary Assistance to Needy Families (TANF)

$8,391,711 3,868 1.80

Diversion 113,465 24 0.01

Consolidated Emergency Assistance Program (CEAP)

642 0 0.00

Food Stamps 10,150,626 10,602 4.94

Medical Assistance $91,648,285

28,666 13.35

2000 Commuting Patterns of Thurston County

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Residents Commuting to Workplace Number of WorkersThurston County, WA 74,078Pierce County, WA 14,352King County, WA 5,350Lewis County, WA 2,843Mason County, WA 1,597Grays Harbor County, WA 951Kitsap County, WA 267Snohomish County, WA 243Skagit County, WA 91Pacific County, WA 77Cowlitz County, WA 69Island County, WA 55

Nonresidents Commuting to Thurston County Number of WorkersPierce County, WA 4,953Mason County, WA 2,841Lewis County, WA 2,383King County, WA 1,792Grays Harbor County, WA 1,595Kitsap County, WA 325Snohomish County, WA 263Clark County, WA 88Skagit County, WA 76Cowlitz County, WA 66

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The Pacific Mountain Workforce Development System

THE CURRENT AND FUTURE WORKFORCE INCLUDING JOB SEEKERS

The Pacific Mountain Workforce Consortium administers the federal Workforce Investment Act (WIA) grants, on behalf of Mason, Lewis, Grays Harbor, Pacific and Thurston Counties. Staff support is provided to the Pacific Mountain Workforce Development Council, which oversees and sets policy for federally-funded workforce programs throughout the five county area, in partnership with the Boards of County Commissioners.

This section is intended to provide community leaders and policy makers a current perspective of the makeup of the youth (emerging), transitional (dislocated workers, adults and other job seekers), and the incumbent workers in the Workforce Development Area and our local communities. The workforce within our area is changing and the needs of youth, transitional and incumbent workers vary in some degree. This section will aid the Workforce Development Council in their deliberations regarding priorities and policy decisions.

As an area highly dependent on natural resources, the losses in the timber and wood products industry continue to be devastating. In addition, the loss of both the commercial and sports fisheries in most of our counties has had a profound impact on the economy. Along with the timber and fishing went many secondary and tertiary jobs dependent upon these industries, such as food processing and tourism dependent on the products from the sea and industries too numerous to mention which have been dependent on the high wage jobs lost to the timber and wood products. The counties have lost a variety of other manufacturing jobs that have continued the slide of the per capita wages when compared to the state average. The average wage in the Pacific Mountain Workforce Area is 2/3 that of the average wage throughout the rest of Washington.

Economic development councils, chambers of commerce and employers throughout the Workforce Development Area have reported difficulty in finding qualified employees. This ranges from entry-level positions where basic skills and work ethics are all that is necessary, to positions in more complex, knowledge-based industries where many of the work force must be recruited from outside the area.

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The PMWDA includes a labor force of 221,580 people. Thurston comprises 55.7 % of the total regional labor force, with Lewis and Grays Harbor in a toss-up for second place at 14.4 %. Mason is close with 11.2 %, and Pacific is the smallest labor force with only 4.3 %. In a review of labor market publications, it is notable that Pacific is often paired with nearby Grays Harbor. Undoubtedly, this is due to the small size of Pacific and its compatibility with the Grays Harbor economy.

Employers who are presently facing labor shortages will probably see the situation worsen as the strong economy and more discouraged workers enter the workforce. There is no quick fix for this problem. What is certain is we must improve the ability of every person within our area who wants a job to get one. This is the challenge faced by the local Workforce Development Council.

Since the Pacific Workforce Development Area includes five counties with very different demographics, economic structures and employment needs and resources; commuting and migration have become an integral aspect of the regions overall economic development and employment opportunities. As a result, transportation including commute times, available traffic corridors and congestion and mass transit opportunities are having an increasingly important impact on the employment rates of the clients PMWDC serve.

YOUTH

One common misperception is that households with children represent the majority of households in the State of Washington. Since Thurston County is the most densely populated of the five counties, it is an excellent model for the trends in the population of youth served in all of the counties. Less than 36 % of Thurston County households in 2000 contained children, down from roughly 46 % in 1970. This may be due to more people choosing to postpone their role as parents, or to forego it all together. The trend has continued over the past few decades and is projected to continue. The aging of the County’s population may also be affecting the number of households with children. This trend creates a reversal of sorts among married couples. In 1970, 57 % of all married couples had children while 43 % did not. In 2000, only 44 % of married couples had children while 56 % were childless. The number of youth has decreased since the 1990 census. The trend appears to have bottomed out at this point.

However, the gap between the needs of employers and the supply of qualified employees continues to grow. This target population struggles with increased dropout rates, increased use of drugs, a rise in teenage pregnancy, and in times of economic downturn, competition with dislocated workers and other more qualified workers to gain employment. Therefore, one of the most important functions of many youth-serving organizations is to link youth directly with work experiences and jobs. Although this requires knowledge of individual youth and their circumstances, it is just as important that these organizations have a deep knowledge of individual employers and their operational conditions so that effective matches are made — matches that meet both the youth’s goals and the employer’s needs. Quality work experiences simply are not possible without interested, willing, and well-prepared employers.

In Washington State, only 74% of the 2005 high school class graduated on time. Moreover, minority and low-income students have higher than average dropout rates and lower than average on-time graduation rates. Over the four year period of high school approximately 19.1 -20.9 % of the students drop out of high school and do not graduate. In certain minority populations the drop

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out rate is much higher. In the Native American Student population, only 55 % of high school students graduate.

Graduation from high school is an enormously important predictor of how students will fare later in life. High school graduates are almost twice as likely as dropouts to be gainfully employed. The salaries that working graduates enjoy are nearly twice as high as those enjoyed by dropouts who work or those with a GED. Students who fail to graduate from high school are also significantly more likely to become single parents and have children at young ages. And students who do not graduate from high school are significantly more likely to rely upon public assistance or be incarcerated. This target population puts a strain on the potential labor force. It also requires increased remedial learning prior to entering a community college. Community college administrators have realized a dramatic increase in the need to provide remedial classes prior to entry into the workforce and/or college. This puts an economic strain on the community colleges and increases the cost of an associate degree while widening the labor pool gap time frame from school to employment.

The Workforce Board staff visited three Workforce Development Areas (WDAs) for the purpose of the DPI report: Northwest, Spokane, and Pacific Mountain. Staff met with the WDC Youth Program coordinators, DPI program staff, school administrators, and when possible interviewed young people who were participants in the programs. Information gathered from the report interviews and the DPI quarterly reports indicates that each WDA selected strategies that take advantage of existing local and community resources. Three distinct approaches emerged from the site visits:

Credit retrieval for students who were credit deficient and could catch up in 90 days Retention of students who were academically at risk as defined by the 8 th grade

WASL, and not necessarily credit deficient. Retrieval of dropouts who have been out of school for a period of time (the hardest

to serve students).

The Quinault Reservation maintains its own public grade school, high school and school board at Taholah. Youth from the Chehalis Reservation attend schools in the Oakville School District, a distance of five miles from the reservation.

Grays Harbor ranks as the county with the seventh highest percentage of population on TANF with over 20% of its children between the ages of 5 and 17 living below the federal poverty guidelines.The Pacific Mountain Workforce Development Area (PMWDA) includes the five counties of Thurston, Lewis, Grays Harbor, Mason and Pacific. With a population approaching 440,000, more than half live in Thurston County.

Methamphetamine manufacturing, distribution and use are the most common street crimes. They go hand-in-hand with another ballooning crime - identity theft. Other related crimes are vandalism, property damage and theft. These are the result of youth going on binges, either "dumpster diving" or "boring" people's mailboxes for cash or valuable property to sell to support their habits. Grays Harbor County ranks 10th in Washington for youth committing crimes against property.

Another new stress for youth is our state's mandates Washington Assessment of Student Learning (WASL). Many high schools have seen an increase in their dropout rate as students opt to get a

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GED over a high school diploma. Another barrier to employment and impact on the labor pool employers have to select from are youth that have a criminal record; especially one related to drug or alcohol abuse. Many industry sectors such as Homeland Security and Medicine preclude anyone with a drug history.

Regional dropout rates from schools throughout the region are believed to be approximately 30% based upon a variety of statistical determinants. As dropouts the employment prospects for these youth, if they do not go on to participate in workplace skills acquisition and vocational programs, are bleak at best.

There has been a significant decrease in the student population throughout the Pacific Mountain Workforce Development Area between the 2003 Program Year and the 2004 Program Year. This decrease in youth gender and age populations parallels that of the state but is more prevalent in the PMWDC five counties.

Chart 1: Population and Employment by County in Pac Mt WDA in 2005

(Source: State Population Survey and LMEA)

0

50,000

100,000

150,000

200,000

Thurston Lewis Grays Harbor Mason Pacific

Population Labor Force Youth

How many youth are working at any given time of the year?

While youth may be employed any time during the year, their employment peaks during the summer months of July, August, and September, the third quarter of the year. This analysis focuses on data from the third quarter of 2005.

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Chart 2: Youth Employment in Pacific Mountain WDA (2004 and 2005 based on QWI)

0

5,000

10,000

15,000

20,000

25,000

30,000

1Q2004 2Q2004 3Q2004 4Q2004 1Q2005 2Q2005 3Q2005 4Q2005

Nu

mb

er

Em

plo

ye

d

Youth 14 to 18 Youth 19 to 21 Youth 22 to 24

1Q=Jan, Feb, Mar 2Q=Apr, May, Jun 3Q=Jul, Aug, Sep 4Q=Oct, Nov, Dec

Which industries employ young men and young women, especially during the summer?To answer this question, the employment data is arranged by industry groups defined by two digit NAICS. These industry groups are given below with abbreviations used in the charts.

Agriculture, Forestry, Fishing and Hunting (Ag, FFH) Utilities Construction Manufacturing

Ethnic Dropout Rates for Urban Areas

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Thurston Urban Avg.

Am. Indian Asian Black Hispanic White

Ethnic Dropout Rates for Rural Areas

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0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Grays Harbor Lewis Mason Pacific Rural Avg.

Am. Ind. Asian Black Hispanic White

Ethnic Composition of Schools Within the Pacific Mountain Workforce Development Area

2000-2004

District Enroll AsianAmerican

Indian White Black Hispanic.Free/

Reduced Lunch

Grays Harbor 27,336 1.6% 6.4% 86.8% .8% 4.1% 44.2%

Pacific 3,304 0% 4.0% 93.0% 1.0% 2% 44% *

Lewis 12,647 1.3% 2.6% 90.1% .6% 5.8% 89.8%

Mason 8,328 2.4% 8.4% 84.0% .8% 4.3% 8.9%

Thurston 38,102 4.8% 8.0% 84.0% 4.5% 5.5% 31.4%

Regional Totals

89,717 ------ ------- ------ ------ ------ ------

*based upon incomplete data from one of the school districts.

New Market Vocational Skills Center, located in Thurston County, is an exceptional program that addresses the issues of student retention and vocational preparation. It serves the east end of the Thurston county and to a limited degree, Mason County youth. New Market is a school that emphasizes training in marketable skills for students in grades 9-12. The Oakville School District is located within easy commuting distance and is the only Grays Harbor County participant in support of this school. New Market is one of only seven such schools in the entire state performing these functions in this particular manner.

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Ideally, there would be more alternatives for students who choose to leave school or are forced to leave school without adequate preparation to obtain and retain employment. WorkSource has attempting to serve this and other youth populations but our success on helping them gain employment is directly related to their existing skills, work ethic and participation in the programs designed for them.

ADULTS IN TRANSITION

There are as many ways to predict the number of dislocated workers, as there are people doing the predicting. One thing that can be said for the Pacific Mountain Workforce Development Area is that it has had more than its fair share of dislocations. One need only look at the dramatic changes that have occurred within the regional and local economies of the Pacific Mountain Workforce Regional Area over the last decade to recognize that a large percentage of our clients easily qualify as dislocated workers. The Pacific Mountain Workforce Development Council is committed to finding High Skills, High Wages employment opportunities for this sector of our customers. We collect data and utilize this data both locally and regionally to maintain performance accountability for WorkSource and WIA Title 1-B. This data enables us to guarantee we are serving the needs of our dislocated workers while comparing our success and participation rates with federal and state performance standards. This ongoing data collection and review by partners throughout the Workforce/WorkSource partnerships including WIA Title 1-B contractors makes it possible for all our programs and services are available to all qualified candidates we have funding available to serve.

INCUMBENT WORKERS

Nearly all states have state-funded incumbent worker programs. These programs generally are financed through state general fund appropriations, funds tied to the unemployment insurance program, the sale of bonds or other debt instruments, or a combination of funds. Although designed primarily to help employers address business needs, these programs can and are being used to upgrade the skills of low-wage and entry-level workers. In the State of Washington, we have utilized limited resources from the Governor’s WIA discretionary funds and SKILL panel funds from the Workforce Training and Education Coordinating Council to expand and enhance programs for incumbent workers. Over the past year, we have implemented strategies including skill training opportunities in general, glass, and marine manufacturing to retrain Incumbent Workers for existing high skills; high wages opportunities in the PMWDA region. While there are opportunities in this employment sector throughout the region, Grays Harbor County has the largest manufacturing and marine manufacturing opportunities. This county is within easy commuting distance from the other counties within the region. Westport Shipyard, with facilities in Westport, Hoquiam, and Port Angeles, is the largest, luxury yacht manufacturer in North America. PMWDC supports training programs to promote the talent development of the specialized workforce required by this employer and other manufacturers in the region.

Due to the need to fill critical healthcare worker shortages, Pacific Mountain, with funding assistance from the Workforce Training Education and Coordinating Board, formed a partnership that consists of hospital administrators, technical practitioners, educators (both secondary and post-secondary), and labor. The partnership effort resulted in the development of a survey instrument and an in-depth assessment of employment gaps of the area’s healthcare providers. A plan was developed to remove the barriers identified as meeting the skills shortages

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and recommendations were developed for the use of training resources and budget consideration. As a result of this partnership, funds were secured from the Employment Security Department (Industries of the Future) to provide incumbent worker training in the healthcare industry. This project trained 25 Providence Health Care System employees in Olympia and Centralia; upgrading them from Certified Nursing Assistants (CNA’s) to Licensed Practical Nurses (LPN’s) and LPN’s upgrading to Registered Nurses. The training builds career paths in the healthcare industry that offer wage gains of 22% for CNA's and 44% for LPN’s.

In a second round of funding, over 90 incumbent workers received prerequisite training to enable them to enter nursing programs. These incumbent workers came from five area hospitals and trained at three of our community colleges.

The PMWDC has been successful in developing and funding an incumbent worker project in the Marine Manufacturing sector. Marine manufacturing is the fastest growing sector in Grays Harbor County and growth is limited due to the lack of a skilled workforce. The incumbent worker project targets marine carpentry, electrical and composites. This training will enable Westport Shipyard to build a workforce around in demand, skilled, high-wage positions.

ETHNICITY/CULTURAL DIVERSITY

In the Pacific Mountain Workforce Development Area, the total %age of people declaring themselves as member of an ethnic/cultural minority is 12.1%. The Hispanic population is the fastest growing in all the counties, with Lewis County showing 5.4% and Pacific County showing 5% of their total population. The county Profiles of Public and Private School enrollments in show minority increases by category and county.

For many diverse job seekers, there is a cultural as well as a language literacy gap. Second language learners are at a huge disadvantage when it comes to entering into the workplace and obtaining employment that matches in all other regards. “One message of this study to educators, policy makers and those concerned with U.S. economic competitiveness is that new entrants to the U.S. workforce are not demonstrating levels of excellence necessary to compete successfully in the face of rising global labor market challenges,” emphasizes Meisinger, author of Employers’ Perspectives on the Basic Knowledge And Applied Skills of New Entrants to the 21st Century Workforce, “The importance of learning to communicate in writing and orally is paramount. Communication is a critical skill in the workplace, and one that many new entrants lack.”

People within ethnic/cultural minorities have traditionally represented a higher level of the unemployed population. This may be for a variety of reasons, including limited English speaking ability. With more job specific training required for demand occupations, it is important that the minority populations increase their job and language skills to improve their employability and reduce the workforce gap. Compliance Barriers in Economically Challenged, Ethnically Diverse, Physically or Emotionally challenged job seekers are even more challenging to overcome.

The US Office of Personnel Management (OPM) has always been a leader in equity employment. As such, the organization provides the ratios of workforce diversity of new hires. The Relative Civilian Labor Force changes are:

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Women from 45.5% to 50.5% (increased by 5.0%)Black from 7.6% to 9.7% (increased by 2.1%)Hispanic from 5.9% to 10.0% (increased by 4.1%)Asian / American Islander from 2.9% to 4.6% (increased by 1.7%)American Indian / Aleutian from 0.5% to 1.1% (increased by 0.6%)

Based on USDA Office of Human Capital Management (OHCM) provided data (10/10/05), FSAFEDS, the federal flexible spending benefits organization, exceeded the hiring statistics for Women, Black and American Indian/Alaskan representative groups for the Year-to-Date by 14.5%, 2.3% and 0.2% respectively. The Hispanic group hire rate is 4.9% of all new hires, 4.1% below target and the Asian/American Islander group hiring rate is 2.7%, 1.9% below target. This demonstrates a positive return on the recruitment strategies, especially maximizing the benefits of the MANRRS initiative and the collaboration with the Office of Civil Rights. In 1988 the name Minorities in Agriculture, Natural Resources and Related Sciences (MANRRS) was adapted, a constitution was accepted, and the first set of national officers were elected.

ECONOMICALLY DISADVANTAGED

The economically disadvantage population continues to remain constant at 16.1%. The state of the economy appears to make a difference. People on the bottom rungs of society always have the greatest problems with obtaining and retaining employment. At a time when unemployment begins to rise, such as the situation presently in Lewis County, the unemployment rates of the economically disadvantaged skyrocket. Unfortunately, disadvantaged members of our society are typically disproportionately affected by recessions, including the recession of 2001. Unfortunately, the fastest growing segment of the general population is a sub group of those who are already economically disadvantaged. The segment of this population living in severe poverty has reached a 32-year high. Nearly 16 million Americans are living in severe poverty: A family of four with two children and an annual income of less than $9,903 - half the federal poverty line in 2005. So were individuals who made less than $5,080 a year. The growth spurt, which leveled off in 2005, in part reflects how hard it is for low-skilled workers to earn their way out of poverty in an unstable job market that favors skilled and educated workers. It also suggests that social programs aren't as effective as they once were at catching those who fall into economic despair. About one in three severely poor people are under age 17, and nearly two out of three are female. Female-headed families with children account for the largest share of the severely poor.

This group, for a variety of reasons, tends to have more challenging health issues that impact their employability. Previous studies have shown that patients from ethnic minorities and economically disadvantaged populations have worse outcomes from some diseases, including increased disability and death. This study clarifies some of the barriers to effective employment and re-employment and could lead to strategies to help these individuals design their work goals more appropriately to their work outcomes. This is a serious challenge to finding and retaining employment not only because of increased time off from absenteeism, but also because fewer Washington employers are offering health insurance each year.

For the second year in a row, the number of Washington employers offering health insurance declined, according to the results of a 2006 benefits survey released by the state Employment

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Security Department. The %age of employers offering health benefits to full-time workers declined from 67.8 % in 2004 to 67.1 % in 2005 and to 66.4 % in 2006, a two-year decline of 1.4 percentage points.

Health-insurance offerings to part-time workers had a slightly smaller decline, from 15.1 % in 2004 and 2005 to 14.2 % in 2006, a two-year decline of 0.9 %age points. In general, industries that paid higher wages were more likely to offer health benefits. However, these are the employment opportunities that are rarely available to the under skilled and socio-economically disadvantaged worker.

At the same time, the study found that industries with higher percentage of wage increases in 2006 also showed the largest decreases in benefit offerings. The study did not produce clear data about the reasons for the decline. But the report notes that employers may have offset rising health-insurance premiums and rising worker wages with reduced benefit offerings.

This population traditionally lacks both basic and occupational skills to a greater degree than non-economically disadvantaged counterparts. Many of these individuals are high school dropouts or may be found on Temporary Aid to Needy Families (TANF). Many (nearly half) are working in low paying or part-time employment. Many are minorities, and a large %age could have learning disabilities.

This group has a variety of training needs and barriers to overcome. In addition, in the largely rural areas found throughout the Pacific Mountain Workforce Development Area, accessibility to training opportunities are more difficult to find and access. This is largely due to limited availability of public transportation. This group continues to be a high priority for services, with efforts to redefine the way they are engaged and trained.

MATURE WORKERS

The over 65 population is the fastest growing segment of Washington State and the WDA. The older worker is healthier and many are choosing to work longer. As the Social Security eligibility age is pushed higher, more from this age group find it necessary to work longer. It is reported in the Washington State Plan that by 2020 one in every five workers will be over the age of 55. The City of Olympia is an example of the aging of our clients. The median age of those living in Olympia is 36 years. Compared to other Thurston County jurisdictions, it has the lowest ratio of population under the age of 19 (24 %). Consistent with these trends, Olympia has the highest proportion of its population between the ages of 20 and 64 (62 %) of any jurisdiction in the county. The county average for the proportion of population between the ages of 20 and 64 is 60 percent.

46.3 % of government workers are 45 years of age or older. This age group makes up 31.2 % of private sector workers. Replacing the large number of workers retiring in the next decade will be a great challenge for federal, state and local governments.

Nationally, 50% of government jobs are in occupations requiring specialized training, education or job skills compared to just 29 % in the private sector.

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Source: The Aging Government Workforce by Craig W. Abbey and Donald J. Boyd, The Nelson A. Rockefeller Institute of Government, July 2002.

The demographics of the Pacific Mountain Workforce Area reflect those of the nation. Persons age 55 and over accounted for 15.1 % of the total labor force in 2003. The General Accounting Office (GAO) projects that this age group will account for 19.2 % of the labor force in 2015. In 2000, the average retirement age for men was 62 compared to 65 thirty years ago. The average age for women in 2000 was just under 63 compared to 65 in 1965.1 According to the GAO, between 2000 and 2008, the %age of teachers older than 55 will increase from 13 % to 19 %.2 According to the same GAO study, people 55 and older in nursing and health-related fields will increase from 12 % to 18 % between 2000 and 2008. According to William T. Gallo, PhD, Department of Epidemiology and Public Health, Yale University School of Medicine, Research has found that older workers with limited wealth as an important group for which the potential effect of involuntary job separation in the years preceding retirement is ongoing (enduring) depression. This depression becomes another obstacle which must be overcome in order to obtain and retain employment.

INDIVIDUALS WITH DISABILITIES

In the 2000 Census, 49,325 people aged 21 to 64 in the five counties identified themselves as people with disabilities. This is approximately 23% of the total population in that age group. Percentages of people with disabilities in the WDA ranged from 18.9% in Thurston County to 26.3% in Pacific County. People with disabilities showed significantly less participation in the labor force than those who reported they were not people with disabilities. In Pacific County, the lowest workforce participation, only 41.9% of those reporting themselves as being an individual with a disability said they were employed compared to 70.6 % of the rest of the 21-64 age group (also the lowest participation). Thurston County, with the largest proportion of people working in government, an aggressively equal opportunity employer, 57.9% of those self-reporting as having a disability were also employed, compared to 80.6% of the rest of the age group, the highest participation rates of the five counties.

While other sectors of the workforce are highly impacted by economic growth and decline, statistically those workers with disabilities remain without work under all economic conditions. In a survey conducted by the National Organization on Disability, it was found that non-disabled (able bodied workers) were more than twice as likely to be working, than job seekers with a disability. Another disturbing fact, found in a Louis Harris poll, is the gap between the wages of people with disabilities and the wages of those without disabilities. People with disabilities are close to three times as likely to reside in a household with less than $15,000 in total income per year. This means their struggle to obtain, retain and maintain employment is compounded by all the complications those encountered by the economically disadvantaged job seeker. Not only are they responsible for overcoming accessibility and suitability of employment issues but they face the daily challenges of poor health care, housing, transportation, and survival issues experienced by those in severe poverty.

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The Pacific Mountain Workforce Development Area has and will continue to promote the hiring of the population of workers. We have purchased a wide variety of assistive technology and equipment to make our WorkSource offices and services throughout the Pacific Mountain Workforce Area accessible to job seekers with a variety of disabilities. The PMWDC has sponsored conferences at the local WorkSource centers to address both independent living skills and the promotion of employment opportunities for job seekers with disabilities. Several WorkSource offices have been extremely active promoting National Mentoring Day. Individuals transitioning from local high schools participate in programs which include presentations by local employers who have hired youth with disabilities in the past. These activities are designed to encourage individuals once they leave high school to seek employment through their local WorkSource center. The Pacific Mountain Workforce Development Area, has and will, continue to promote the hiring of this population in a variety of ways.

DISCOURAGED WORKERS

Discouraged workers are those unemployed workers who have given up looking for work because they believe that they will not find a job or if they find a job they will be unable to keep it. This concept has been around since, at least, the 1970’s, but no official estimates are available before 1994 and these are only available nationally. The term discouraged worker is often confused with the term dislocated worker. The most important distinction is that the dislocated or displaced worker is most often considered part of the labor force. The notion of dislocation is strongly aligned with the economic concept of structural unemployment. The number of discouraged workers is hidden somewhere in the statistics generated by each of the five counties indicating those not a part of the labor force. It would also include the homeless, who for complex social, health, and economic reasons, no longer has a residence and is therefore no longer accounted for by the federal census figures or local demographic statistics.

The discouraged worker is not in the labor force and is, therefore, not a part of the unemployment rate calculation. While there are no statistics on the number of discouraged workers within the Pacific Mountain Work Development Area, it would be reasonable to anticipate that in those areas higher in unemployment and seasonal employment only, or where the population of mature workers and/or workers with disabilities is growing in number, there would be a parallel increase and larger proportion of discouraged workers.

The greatest factor that will return discouraged workers to return to gainful employment is a good economy. If the discouraged worker has been unemployed for an extended period of time, he/she will probably need more intensive services such as a third party or one-on-one relationship with organizations and individuals that address core issues and needs prior to job seeking activities. These needs include self-confidence issues, job seeking strategies and skills that produce a higher probability of being employed with little or no long term job seeking investment and a Job Development partner who works with the individual in a partnering capacity all the way through the job development, seeking, acquisition and retention process. Discouraged workers, because of the length of their unemployment are not factored into unemployment statistics because they are not drawing unemployment insurance.

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WOMEN

The percentage of women in the labor market continues to increase dramatically. Within the Workforce Development Area women are more likely to be employed in the area of technician, sales and administrative support (66.5%) or services (64.8%). According to the U.S. Census, the average wage per job in the United States was $46,224 in 2004. The average earnings per job in Thurston County in 2004 was $38,919. While the average earnings in Lewis County was $32,826. In Lewis County the average salary was only 84% of that of Thurston County and it was only 72% of that of the average wage throughout the United States. According to an article in The Olympian (2006), the difference between male and female median earnings for full time workers grows from 33.43% in Thurston County to 52% in Lewis County.

Source: 2005 US Census Bureau data, released for 2006

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It is important to recognize women, especially those with children, make up the largest growing percentage of those in severe poverty and the working poor. Women comprise 56.4 % of the economically disadvantaged population. Those in this category typically need to be trained in high-skills, high-wage positions so they can support themselves or their children. Technology is considered the ticket to better paying jobs for women while narrowing the skills gap. Women seeking employment in the Pacific Mountain WDA reflect the national trends. In 2003, there were 21.2 million workers age 55 and older, which made up 15.4 % of the total employment. Women between the ages of 55 and 64 have steadily increased their labor force participation rates from 42.0 % in 1985 to 49.2 % in 1995 and to 56.6 % in 2003. This is largely because their economic circumstances require that they continue working.

Women also face the need to balance the responsibilities of home, job seeking, job acquisition and work. For this reason they often find less success in all their competing roles and have no time to upgrade skills. This statistically contributes to loss of employment, health complications related to the stress, job related performance, and the in to pursue lifelong learning required to be successful in an increasingly technical and changing workplace. YOUTH AND ADULT OFFENDERS INVOLVED IN THE FEDERAL, STATE AND LOCAL JUSTICE SYSTEMS

The numbers of offenders seeking employment are staggering. Ninety-seven % of the men and women sent to prison in the state of Washington will eventually be released back into the community. Of the 2,956 offenders who were admitted to prison between March and May of this year, 2006, 42 % - 1,238 inmates - were repeat offenders, including 375 felons who had committed crimes against other people. Many of these correctional facilities have ongoing academic programs for those who are incarcerated. Mission Creek Corrections Center for Women has both ongoing work experience through the Department of Natural Resources and academic classes available to their inmates.

Adult Institution Offender Populations in the Pacific Workforce Area

INSTITUTIONSOPERATIO

NAL CAPACITY

TOTAL POPULATIO

N

PERCENTAGE OF

OPERATIONAL CAPACITY

Cedar Creek Corrections Center 400 394 99%

Coyote Ridge Corrections Center 600 569 95%

Mission Creek Corrections Center—Women

80 111 139%

Stafford Creek Corrections Center 1,936 1,943 101%

Washington Corrections Center 1,298 1,716 132%

Work Release 674 635 94%

As of November 30, 2005

The state of Washington is not doing a good job of preparing felons to lead productive lives or helping them acquire the gainful employment, home environment stability and other basic needs

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after their release. The result, thousands are returning to a jail cell. The state's average recidivism rate of 38 % is staggering. It costs taxpayers dearly when felons are repeatedly sent to prison. The cost to house, feed and treat each prisoner averages $27,170 per year for each of the average 16,422 inmates behind bars at any given time. The communities within the Pacific Mountain Workforce Development Area grapple with the same problem - on a smaller scale - with county jails. Most of the inmates in the county lockup are drug abusers - many of them methamphetamine addicts. That's why counties started innovative drug court programs years ago in which the prosecutor, judge, defense attorney and treatment providers work together to break the defendant's cycle of addiction and eliminate return trips to the county jail. Their tendency toward addiction adds another obstacle to the many that already exist when a potential employer considers employing

Numerous studies show that inmates who are well prepared for life outside the prison walls are less likely to commit another crime. Clarke is right when he says that will save lives and money. The prison chief merits legislative support for his plan.

The Following are Workforce Client Statistics:

89% of people who violate the terms of their probation or parole are unemployed at the time of violation.

600,000 people return home to their communities each year after serving state prison sentences.

In 2005, 1 in every 136 people was behind bars.

According to an article from Nov 07: 1 in every 32 US adults behind bars, on probation or on parole (does not include those not under supervision).

A survey of shelter and services providers found that 49% of homeless clients have spent five or more days in city or county jail at sometime in their life. Some of these jail experiences may have been a direct result of their homelessness (behaviors that are difficult to avoid if one is homeless such as loitering). 18 % have been in state of federal prison, 16% in juvenile detention.

According to a 2003 report by the Bureau of Justice Statistics, about 75% of state prison inmates and 69% of jail inmates did not complete high school, while only 18% of the general population age 18 or older did not complete high school. Yet, barely half of all state prisoners participate in any educational programs during their incarceration, a proportion that has been decreasing over time.

Recent studies have shown that in-prison educational programs can reduce recidivism. The Washington State Institute for Public Policy conducted a comprehensive statistical review of all criminal justice program evaluations conducted for the last 40 years in the United States and other countries to identify which programs were found to reduce crime. The 2006 study, Evidence-Based Adult Corrections Programs: What Works and What Does Not, found that basic adult education programs in prison reduced recidivism by 5.1%.

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Youth offenders have an added challenge in the search, acquisition and retention of gainful employment. A major developmental task of all adolescence is to prepare for economic self-sufficiency in adulthood. Successfully meeting this challenge requires youth to develop many work related skills that both youth and adult offenders often lack.

The following are examples of programs within the PMWDA are addressing the above needs and strategies. Harbor High, Aberdeen School District's alternative high school to provide early intervention that focuses on decreasing the drop out rate, breaking the cycles of low academic achievement, incarceration, economic deprivation and substance abuse for high-risk students between 16-21 years of age.

Pacific Mountain Workforce (Pac-Mtn) has expanded its service to offenders through a program called Get Employment Today (GET). Pacific Mountain Workforce is establishing new service delivery sites in Mason and Pacific counties, increasing the number of offenders served in Grays Harbor and adding case management component in Thurston County. The Thurston County ail has found the Program to be so successful that they have begun to pay for these activities with their general revenue funds.

The Juvenile Rehabilitation Institutional population is the lowest it has been in 15 years at 829. Five of the most common initiatives that affect youth who are served through the workforce development system are highlighted in the following: Workforce Investment Act Formula Funds, Youth Opportunity Movement, Job Corps, Youth Apprenticeship, School-to-Work, and One-Stop Centers.

Fiscal Year 2006 ReleasesFrom July 1, 2005 through November 30, 2005

THE WORKFORCE DEVELOPMENT SYSTEM TODAY

A. COMMUNITY COLLEGES

The Pacific Mountain Workforce Development Area (PMWDA) is fortunate to have four excellent community colleges within its boundaries. They are: South Puget Sound Community College in Olympia, Centralia College in Centralia, and Grays Harbor College in Aberdeen, and Olympic College operating a satellite campus in Shelton.

CountyReleased From

SentenceReleased From

ViolationTotal Releases

GRAYS HARBOR 52 76 128LEWIS 71 85 156MASON 40 66 106PACIFIC 16 25 41THURSTON 145 216 361No County of Release 298 231 529

Total 622 699 1321

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These institutions offer courses in a wide variety of professional-technical programs in occupations ranging from agriculture and renewable resources, business, marketing, education, engineering, allied health occupations; hospitality; construction, welding, information technology; automotive and heavy diesel mechanic training; and corrective services. The corrective services program includes such specialties as emergency dispatch, fire science, and criminal justice.

Additionally, the community colleges offer Adult Basic Education, English as a Second Language, and GED preparation courses to enable students to successfully transition into professional technical training programs. During the 2004-2005 academic year, over 1,620 individuals were enrolled in ABE/ESL/GED classes.

Federal funds made available by the Carl D. Perkins Vocational Education Act are intended "to make the United States more competitive in the world economy by developing more fully the academic and occupational skills of all segments of the population". During 2005-0006, over $671,748 was granted to the PMWDA community colleges to help students obtain skills and competencies needed to work in today's technologically advanced society. Some of the college activities utilizing Perkins funding include design of a “bridge” program to transition basic skills students into professional technical education programs and refreshing computer labs to enable students to train on the same type of equipment they might encounter in the workplace.

Also, the Perkins funding supports a variety of Tech Prep activities at the community colleges throughout the region. In FY 2004-0005 PMWDA community colleges were allocated $263,377 to support Tech Prep activities.

B. SECONDARY VOCATIONAL EDUCATION

We have a very strong program of secondary vocational education in the five-county PMWDA. Our high schools are committed to improving transitions to beyond the high school experience through such programs as Running Start and Tech Prep. The Running Start Program, allows eleventh and twelfth grade high school students to take college courses free of charge at any of the 34 state community and technical colleges and selected four-year institutions. Tech Prep provides occupational pathways for students by preparing them for technologically advanced careers and postsecondary education by emphasizing strong academic, technical, problem-solving, and critical-thinking skills.

New Market is a consortium of 10 school districts and is an extension of the home high school, functioning as an off-campus training site. The school is recognized state-wide for its unique and specialized programs. The programs simulate business and industry and have numerous connections with business partners in the area. New Market students develop basic and advanced work skills. They also develop maturity skills, and entry-level occupation competencies at no cost to the student.

Students who receive training at New Market can expect to:← Earn up to 3 high school credits in a full-year program. ← Learn from teachers/partners who come from business and industry. ← Receive information on career and post-secondary opportunities.

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← Participate in Internships and Work Based Learning, Job Shadowing, Apprenticeships and Clinic Settings when applicable.

← Develop a personal career portfolio. ← Participate in a wide range of leadership activities/programs. ← Receive a Certificate of Competency. ← Make the transition from school to work and/or post-secondary education. ← Receive advanced placement or college credit through the Tech Prep programs.

Academies address competency skills in a wide range of marketable skills.← New Market serves 800 students during the school year and 650 for summer school. At this time the school offers 17 occupational programs. A new program is scheduled to be added d in Grays Harbor. New Market serves the counties of Thurston, Lewis, Mason and Grays Harbor.

C. PRIVATE CAREER SCHOOLS AND PRIVATE COLLEGE VOCATIONAL PROGRAMS

Of 227 licensed private vocational schools located within Washington State, only eight are located within the PMWDA. They include two computer-related schools and a travel career program in the Olympia area and four H & R Block income tax courses (Olympia, Yelm, Aberdeen, Chehalis). Public funds are not appropriated for private schools, although eligible students may obtain federal grants and loans to pay for such educational expenses.

D. EMPLOYER-SPONSORED TRAINING

An overwhelming majority of employers (91 %) in the PMWDA provide some form of on-the-job training to their employees compared with 85 % on a statewide basis. PMWDA employers provide or pay for training for their employees in a classroom, workshop or seminar setting (at least 4 hours) at a level of 52 % compared with 49 % statewide. As in the case of statewide results, managers are more likely to receive classroom training than production or service workers (WTECB Survey).

E. YOUTH, ADULT AND DISLOCATED WORKER PROGRAMS FUNDED BY TITLE I-B OF THE WORKFORCE INVESTMENT ACT (WIA) OF 1998

The Pacific Mountain Workforce Development Council (PMWDC) directs the award of program funds for the Workforce Investment Act and provides services to adults, youth and dislocated workers in the five-county Pacific Mountain Workforce Development Area.

POPULATION SERVED

PROGRAM YEAR 2006

FUNDS

SERVICE PROVIDER COUNTIES SERVED

Youth $984,386

Educational Service District #113 Grays Harbor, Lewis, Mason & PacificCommunity Youth Services Thurston

Adults

$945,875

Employment Security Department Lewis, Mason, Grays Harbor and Pacific

Pac. Mtn. Job Develop. & Training

Thurston

Employment Security Department Lewis and Mason

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Dislocated Workers (including Timber)

$1,088,379G. H. Career Transition Center Grays Harbor and Pacific

Employment Security Department Mason and ThurstonTOTAL IN 2006 $3,018,640

F. FEDERAL WAGNER-PEYSER ACT

The WorkSource matches applicants with jobs listed by employers and provides applicants with access to the most up to date electronic labor exchange self-service. In this context, the WorkSource administers the work test required of unemployment insurance (UI) claimants. In referring applicants to jobs, priority is given to veterans, persons with disabilities, and UI claimants in that order. Services will continue to be available to incumbent workers to increase their wages and retention.

In the PMWDA, WorkSource supplements its basic Wagner-Peyser staff with additional employment services capacity provided by the unemployment insurance program and the state-sponsored Claimant Placement Program.

Employment service staff are distributed throughout the five-county area in WorkSource offices. Four and a half staff members are assigned exclusively to provide services to veterans. In addition to the basic employment service capacity in the area WorkSource is active in the welfare reform (WorkFirst) arena.

G. APPRENTICESHIP

This oldest of workforce programs is one in which training is arranged by joint committees composed of labor and management. Related classroom instruction is normally provided by local education or training institutions. The PMWDC is a strong advocate for apprenticeships and seeks to expand and enhance our partnerships. We have supported several initiatives over the past year to increase the number of apprenticeships in our area. In partnership with New Market Skills Centers, we provide in-demand scholarships to students completing construction pre-apprenticeships. Additional pre-apprenticeship opportunities are now available in the construction trades at New Market. We are working with operating engineers representing the dislocated workers from the Trans Alta Mine in Centralia to ensure they have the necessary skills to be employable in the in-demand highway construction occupations where high skills, high wages opportunities are available. We have employed the operating engineers from these apprenticeship programs as instructors to teach the necessary short-term, bridge construction skills training in heavy equipment operation to dislocated workers who would not be able to enter apprenticeship training elsewhere without this timely, intermediary instruction. Both of these efforts have proven to be very successful.

H. ONE-STOP (WORKSOURCE)

Two WorkSource Centers are established and certified within the PMWDA. They are located in Thurston and Grays Harbor Counties. Four Affiliates are certified and operate in Pacific (2), Mason (1) and Lewis (1) counties. Efforts are presently under way to re-certify all centers and affiliate sites within the Pacific Mountain Region.

The WorkSource Centers are organized according to three levels of service, as follows:

Level I Core Services Initial assessment and referral

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Employer human resource services Job development and referral Unemployment insurance direction and free fax, internet, e-mail and computer

access Relevant labor market information Training options and eligibility information Employment counseling

Level 2 Intensive Services Intensive group services geared toward gaining employment at self-sufficient

wages One-on-one assistance in obtaining and retaining employment

Level 3 Training Services Training or retraining in order to obtain suitable employment (where labor

market research shows potential for employment after training)

I. VOCATIONAL REHABILITATION

The State Division of Vocational Rehabilitation (DVR) provides employment and training services to person with disabilities. In prioritizing services, DVR assigns the highest priority to those persons with the most serious or limiting of disabilities.

Specific services of DVR are counseling and assessment, job placement and training (institutional and OJT). The Division also has a limited capacity for providing assistive devices that can improve clients' employability. DVR is a major partner in the WorkSource system throughout our area.

Intermediaries can enhance the professional development of employers and their ability to work effectively with youth with disabilities. They provide employers with both specific information about youth with disabilities, and information about strategies that will help them address training or supervision issues. For example, an intermediary can assist employers in making sure youth entering the workplace are equipped with industry-based competencies and employer-validated skills. By consulting with employers, intermediaries can help build internal competence within a business to support and accommodate youth with disabilities.

Knowledge about issues and strategies allows employers to: (a) understand the complexities of workers and work-based learning environments, (b) avoid becoming discouraged by the failures they may encounter when working with youth with disabilities, (c) effectively confront and accommodate disability-related problems, and (d) recognize situations in which youth may not have been appropriately matched to the job (Luecking & Fabian, 2000). An intermediary can match employers to employees, thus contributing to the overall quality of the future workforce.

Intermediaries can also assist educators and schools. Educators today face great pressure to address high academic standards, teach to specific learning styles, attend to influences outside of the classroom, and engage at-risk learners. Work-based learning experiences purposely linked with classroom learning provide an effective avenue for addressing these challenges. For instance, meaningful connections to the workplace augment both academic and career preparation, allow for more relevant learning for students at risk of dropping out, and enrich

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many other teaching opportunities (Goldberger, Keough, & Almedia, 2001). Intermediaries can be a mechanism by which educators connect to the world outside the classroom.

For youth with disabilities, linking to an intermediary can be a way to achieve immediate and future career goals. Intermediaries can connect youth to quality work-based learning experiences and educate workplace supervisors, mentors, and coworkers about the accommodation and integration of workers with disabilities in their companies.

J. DEPARTMENT OF SERVICES TO THE BLIND

The Department of Services to the Blind (DSB) is a relatively small agency that provides essentially the same services as DVR, but only to individuals with severe visual impairment. DBS serves an increasing blind and visually impaired population. The current population potentially eligible for DBS services is estimated at 910,702 individuals. By Fiscal Year 2011 this number is estimated to increase 20% to 132,897. This is largely due to the aging of the population. DSB estimates they are able to serve only 3% of the eligible population due to limited resources.

DSB has no permanent service office in the PMWDA. The Tacoma office serves Thurston and Mason counties; the Vancouver office serves the balance of the PMWDA.

K. PRIVATE AND NON-PROFIT JOB TRAINING OR WORK RELATED ADULT LITERACY

Families that Work provide basic skills in finding success at work for hard-to-employ and low-wage earning parents. This program is partially supported by a WorkFirst (welfare reform) contractual arrangement with the Department of Social and Health Services.

L. AMERICORPS

AmeriCorps programs provide full and part-time opportunities for participants, called members, to provide service to their communities through community organizations and agencies.

Community Youth Services in Olympia operates AmeriCorps Youth in Service in Thurston, Mason, Lewis and Grays Harbor counties. Through a competitive process, local schools and community-based non-profit organizations are afforded the opportunity to utilize members in such projects as one-on-one and small group tutoring of high needs students; outreach and direct services to the homeless; and recreational and monitoring opportunities for youth that promote safe and appropriate behavior and enhanced self-esteem.

M. ENTRPRENEURSHIP AND SELF-EMPLOYMENT

PMWDC will work in coordination with the Workforce Training and Education Coordination Board, small business advisory and microenterprise centers, and other government and non-profit organizations that ensure that information about entrepreneurial training opportunities are made available through the WorkSource system. We plan to disseminate information about the various organizations in the Pacific Mountain Workforce Area that support self-employment and entrepreneurship to our interested participants.

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There has been increasing entrepreneurial activity in recent years. The decision to start a small business often stems from the loss of employment, limitations impacting employability (individuals with challenges such as disabilities), the need to supplement income due to low wage work, divorce, illness, lack of affordable child care, and/or lack of alternatives in the labor market. PMWDC is working to ensure that our support is relevant, meaningful and compatible with the needs of WorkSource participants who choose to become entrepreneurs. One of our primary resources in this endeavor is Enterprise for Equity. Our participants often have creative ideas and very marketable talents. Without Enterprise for Equity, they would probably not have access to the kind of training and technical assistance necessary to begin even the simplest small business. Enterprise for Equity, a partner to PMWDC and Vocational Rehabilitation, serves as a consultant providing self-employment and small business development training to interested consumers and benefits specialists. Enterprise for Equity, one of our partner organizations, primarily serves women who are hard-working and often single parents. Some are WorkSource referrals and persons with disabilities, and others are those who are considered "not bankable" by conventional financial institutions. Another partner founded in 1980, is the Evergreen Community Development Association. It is a private non-profit organization with a mission of economic development through small business finance. Evergreen acts as an intermediary for federal and non-profit alternative commercial loan programs to help create jobs and stimulate growth. The Evergreen Rural Fund is provided in cooperation with Rural Development of the U.S. Department of Agriculture and is designed to create or retain jobs and stimulate small business development in rural areas. The fund provides loans to businesses in population centers of 25,000 people or less located in its trade area. This organization in conjunction with Cascadia Revolving Credit provides funding opportunities in the Pacific Mountain Area for new and expanding entrepreneur enterprises.

In our low-income communities and in communities where traditional industries, such as lumber milling and fisheries, do not employ as many workers as they did a generation ago, opportunity can seem out of reach. We are placing our priority on removing the barriers to economic growth and attracting new private sector investment. This in turn creates jobs and produces new revenue for both the entrepreneurs and their employees. PMWDC, by working with its partner organizations, is promoting a culture of enterprise to foster new business formations and attract new investment as employment centers and revenue generators.

N. WORKSOURCE/WORKFIRST INTEGRATION

A partnership between Employment Security, Department of Social and Health Services, WorkSource partners and local workforce development councils has been formed to refocus and redefine how services are offered to TANF customers and develop a TANF Employment Services Pathways Plan. To achieve this objective, the following goals have been established:

1) Create a more effective system for helping TANF recipients find employment.

2) Consolidate employment service delivery into WorkSource to strengthen the quality and access to services for our job seeking customers.

3) Move beyond just focusing on only the job seekers and their needs to a system that also provides new options for employers in meeting their need to find qualified employees.

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4) Begin to align the local planning process for employment services with current workforce development and strategic and operational planning processes.

The TANF Employment Services Pathways Plan will describe customer flow and services, identify program participation and outcomes, describe program services integration and explain the plan development process. It is the intent that this plan will become part of the WIA Title I-B and Wagner-Peyser Act Operations Plan. It is the intent of the Pacific Mountain Workforce Development Council that the Pathways Plan and any future agreed upon modification will be considered part of this Operations Plan as a result of this reference

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PERFORMANCE ACCOUNTABILITY

The Pacific Mountain Workforce Development Council (PMWDC) is dedicated to meeting the challenges of an ever-changing economy, assisting the local labor force in obtaining the skills needed to become or remain competitive for family wage jobs, and making the best use of the resources provided by our business community, local partners and the workforce development system. In order to meet these challenges, the workforce development system must continuously measure results, identify areas to improve and make the necessary improvements.

A. STATE LEVEL PERFORMANCE AND REPORTS

The Pacific Mountain Workforce Development Council is committed to collecting data that will be utilized both locally and regionally for performance accountability under WIA Title 1-B and for WorkSource quality control purposes. This data allows us to measure our performance based upon both federal state performance standards. It also allows Program Operators to provide continuous quality improvement guidance to both WorkSource and WIA Title 1-B contractors. The Pacific Mountain Workforce Development Council expects to be held accountable for the performance of WIA 1-B. We also share the accountability for career and technical education (CTC) and adult education (ABE/ESL) through the system of incentives (section 503 performance incentives).

The proposed targets for Program Years 2007/2008 are identified below. These targets will be modified after negotiations with the U.S. Department of Labor and the Washington Higher Education Coordinating Board.

B. FEDERAL PERFORMANCE MEASURES

Measure Programs Measure Applies To

Adult Dislocated Worker

Older Youth

Younger Youth

Entered Employment Yes Yes Yes

Retention Yes Yes Yes Yes

Earnings Gain Yes Yes Yes

Employment and Credential Yes Yes Yes

Skill Gains Yes

High School Diploma Rate Yes

Customer Satisfaction, Employer Yes Yes Yes Yes

Customer Satisfaction, Participant Yes Yes Yes Yes

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STATE AND FEDERAL CORE INDICATORS & EXPECTED LEVELS OF PERFORMANCE FOR Program Year 2007/2008

Performance Targets for Years 6 and 7 of the Workforce Investment Act (WIA) Title I-B

Performance Measure New Targets

PY 2007 (Year 8) PY 2008(Year 9)Federal Adult Measures

Entered Employment 79.8% 79.8%

Retention 81.5% 81.5%

Earnings Gain $4,061 $4,061

Employment and Credential 69.3% 69.3%

Federal Dislocated Worker Minimums

Entered Employment 83.0% 83.9%

Retention 89.5% 89.5%

Earnings Gain -$1,694 -$1,695

Employment and Credential 73.1% 73.1%

Federal Older Youth Measures

Entered Employment 76.7% 76.7%

Retention 80.4% 80.4%

Earnings Gain $3,447 $3,447

Employment and Credential 59.3% 59.3%

Federal Younger Youth Measures

Skill Gains 86.0% 86.0%

High School Diploma Rate 59.3% 59.3%

Retention 63.1% 68.5%

Federal Customer Satisfaction

Employers 69.0% 69.0%

Participants 75.0% 75.0%

State Adult Measures

Credential Rate 65.8% 65.8%

Employment Q3 74.5% 74.5%

Annualized Median Earnings Q1 $17,341 $17,341

Participant Satisfaction 90.0% 90.0%

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State Dislocated Worker Measures

Credential Rate 68.3% 68.3%

Employment Q3 After Exit 81.2% 81.2%

Annualized Median Earnings (Q1 2003 $) $25,875 $25,875

Participant Satisfaction 89.5% 89.5%

State Youth Measures

Credential Rate 75.3% 75.3%

Employment Q3 After Exit 75.9% 75.9%

Annualized Median Earnings (Q1 2003 $) $9,627 $9,627

Participant Satisfaction 95.0% 95.0%

State Employer Satisfaction Measure 69.0% 69.0%

Participant Satisfaction 75.0% 75.0%

Continuous Quality Improvement is ensured in the Pacific Mountain Workforce Development Area in all WorkSources and Affiliate locations. The Pacific Mountain Workforce Development Council (Pacific Mountain) has used accumulated data and research-based forecasting to identify the goals, objectives and strategies for the Council in the coming years. In early 2005, Pacific Mountain held a series of summits with business, economic development organizations and education (including both secondary and post-secondary representatives). Each summit identified the key issues affecting each constituency and developed a series of next steps to be addressed by Pacific Mountain through its programs or through its partner agencies. Below are the key findings of each summit and the recommended next steps:

AGENDA FOR ACTION

The Pacific Mountain Workforce Development Council’s (PMWDC) vision for the future is to serve as a leader and valued partner in strengthening the economic vitality of Grays Harbor, Lewis, Mason, Pacific and Thurston counties. In this capacity we see ourselves in a regional role with the mandate to work with each county in the context of its place and contribution to the Pacific Mountain WDA’s regional economy and employment. The mission of the PMWDC is to create a workforce development system that enhances the economic success for workers and businesses in our communities. The Council has established goals and objectives for the future. They parallel the goals and objectives of the Workforce Training and Education Coordinating Board and support the goals and objectives of the High Skills, High Wages initiative of 2006. For example, the PMWDC has specifically targeted Dropout Prevention as an initiative for their committee work. The Pacific Mountain has and will continue to implement very successful dropout prevention programs now and into the future. This is consistent with Strategy 1.2 because these activities have and will continue to retrieve dropouts and increase high school graduation rates.

The PMWDC has a long history of utilizing existing WIA Title 1-B resources to assist eligible youth, adults and dislocated workers as required under Strategy 5.3. We have been quick to

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respond to employment and economic events as they occur by securing discretionary resources above and beyond our standard available resources to address the needs of our customers during cataclysmic events and extraordinary jumps in the unemployment rate. We have used these additional resources to provide additional services including interim training programs so the unemployed workers can obtain new opportunities quickly.

The Pacific Mountain Workforce Development Council is proud of its efforts to accomplish the desired results of Strategy 11.4. For years, we have worked closely with the Economic Development Leaders within all our counties and communities to provide the workforce talent necessary to promote new and expanding business. It has been our standard operating procedure to respond quickly and efficiently to the needs of our changing economic infrastructure and the goals of the EDCs. A good example of this cooperation between the Council and economic interests in our region is our recent response to the United States Department of Labor’s WIRED grant RFP. The grant proposal we submitted was based upon the collaborative efforts of all of the local EDCs, Education partners, and government agencies. Our ongoing collaboration and coordination is evident in all of our ongoing programs and intervention. For example, the PMWDC has supported the efforts of the Thurston County EDC to encourage outdoor gear retailer and cataloger, Cabela’s, to locate their next major retail establishment in Lacey. It is presently in the development stages, but all parties are assured it will soon become a reality. In the next few months, PWMDC will actively help Cabela’s recruit and hire nearly 350 employees to meet the immediate needs of the retailer as they open their doors to the public in the fall of 2007.

The Pacific Mountain Workforce Development Council included in its Initiatives for 2006/2007, the implementation of a work readiness credential. The training for this credential and the increased employability of those who earn this credential are consistent with the goals of Strategy 9.1 of the High Skills, High Wages 2006 Strategies. Although the PMWDC has not yet selected a cost effective tool to measure the workforce readiness of those participating in this certificate program, workforce readiness is a high priority of this Council.

Pacific Mountain Workforce Development Council has actively implemented Strategy 16.1, the co-location of Labor and Industry and Vocational Rehabilitation services at WorkSource Centers. We recognize that the effort to make these co-locations a reality will significantly improve the integration of services available at WorkSource Centers. It may also result in modifications of the governance of these centers. As a successful pilot program, the PMWDC went through a lengthy and challenging process to establish this co-location at the Thurston County WorkSource Center. We are encouraging other WorkSource Centers to follow now that this site has successfully implemented Strategy 16.1 a few months ago. We are proud to be the first Workforce Development Area in the state to implement a strategy we know will help us serve our customers more effectively. We plan to expand these efforts wherever appropriate and necessary.

A. Business Summit

In late 2004 and early 2005, the Pacific Mountain Workforce Development Council held a series of Summits with business, economic development organizations and education (including both secondary and post-secondary representatives). The Summits identified the key issues affecting each constituency. They developed a series of next steps to be addressed by Pacific Mountain through its programs and through its partner agencies. The information learned from these Summits continues to mold our activities. We are committed to meeting

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the needs of our critical, constituent groups. The key findings from each Summit are identified below:

1. Key Findings

There is a serious need for customer service skills. In retail everything is about the customer – “the employee’s contact with the customer may be the most important thing in that customer’s life on that day.” Customer service includes “being nice”, but also includes showing respect, caring, conflict management, problem-solving, and taking time for the customer.

Customer service is an issue not only for new hires, but must continually be addressed and promoted with incumbent workers.

Attitude is as essential as technical skills for job seekers and incumbent workers. Attitude was defined as wanting to work, taking responsibility, caring about the job, showing respect and willingness to take direction from supervisors.

Lack of basic skills in job applicants is increasing. Basic skills include reading, writing and math, computer skills (Even college graduates do not always have the basic skills necessary to properly complete routine job documentation and many job applicants over 35 do not have essential basic computer skills). Some employers suggested pre-testing applicants before they are referred.

The number of applicants with specific technical and management skills is dwindling, especially in rural areas necessitating out-of-area recruitment.

Job seekers need to be taught essential life skills (being prepared to solve daily living needs, emergency transportation or child care).

Job seekers need to learn how to work not just how to market themselves (prepare nice resumes/portfolios, interviewing skills, etc.) Job seekers can have a professional resume done for them but it is important that they can write clearly, spell correctly, and fill out an application completely.

Childcare is unavailable in evenings, early mornings or weekends, restricting the availability of workers.

Applicants need a better understanding of a realistic workplace environment prior to applying. For example: are the hours unusual, is the work outside, will they get dirty, is it essential to be at work on a “snow” day?

Employers in manufacturing communicated a need for mechanical aptitude, math and computer skills. Also, electrical workers are in high demand.

The workplace is becoming diversified. Language barriers exist and employers could use assistance with training.

Business has to train their own workers more frequently to make sure the workforce has the needed skills and attributes.

Hiring someone who has a disability has provided a good worker and has been a positive experience.

2. Next Steps

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Explore pre-screening for basic skills and testing for math and technical aptitudes.

Explore training opportunities for people who do not speak English.

Reinforce all aspects of work readiness including life skills basic skills, knowledge of work expectations and technical skills.

Evaluate workshops provided at each WorkSource location to determine if changes need to be made to better prepare job seekers for work.

B. Economic Development Summit

1. Key Findings

Reinforcement of existing relationships between Economic Development Councils and the Workforce Development Council.

Need a regional training center for employer-specific needs.

The entry-level workforce continues to need soft skills.

Need to define family-wage jobs.

Business needs pre-screening of "job-ready" applicants.

There needs to be a bridge between high schools and business for vocational/technical and soft skills to meet workforce needs and provide growth opportunity within employment fields.

Regional cluster industries and resources need to be identified.

WDC should understand and address the shift in demographics and language needs (English to Spanish and Spanish to English) and identify opportunities for business and the workforce.

Specialized incumbent worker training is needed to retain a skilled workforce and to keep the jobs in the local community.

WDC could become the common voice for education issues.

Need for a “turn-key” employment and training service that encompasses a full range of activities such as recruitment, intensive assessment, hiring and customized business training.

Explore the use of Interactive Television (ITV) for regional business training.

Establish linkage with Washington Manufacturing Association for “lean manufacturing” services.

A need exists to better identify new and emerging technologies and occupational needs of industry partners.

Statewide cluster emphasis and resources are not necessarily consistent with the demand in rural areas.

The WDC must have a clear understanding of each EDC’s targeted industries, to ensure the WDC implements appropriate training programs.

2. Next Steps

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EDCs will submit quarterly reports to the WDC so they are able to identify emerging industries and needs.

EDCs would like to be kept informed of partnerships between business and high school vocational education departments.

Training to the EDCs will be provided annually to update them about the smorgasbord of employment and training services.

Findings from the EDC summit will be integrated into the WDC future planning.

C. Education Summit

1.a. Key Findings - K-12

The work world needs to interact with elementary school students at a very young age (particularly 4th and 5th grade) to increase children’s knowledge of career options.

People need to have a vision to have success. Students need community leaders with culturally diverse backgrounds to create trust in the cultural group and to model success.

The K-12 system is focusing on the new standards of competencies testing and, as a result, must let go of some other things. About 38% of 10th graders are now able to pass the WASL on the first try. With current regulations every student must pass before they can graduate.

If students don’t get a diploma there is no place for them in today’s workforce.

As the WASL process unfolds, more competent learners are coming from elementary schools, which may push change in the level of competency at the high school level.

We need a way to work with students who are capable and motivated but do not pass the WASL.

1.b. Key Findings - Community Colleges

Most students leaving high school now are not ready for college level courses. They still lack many of the basic skills.

Community colleges now must provide a large proportion of pre-college level classes. More developmental classes will result in less money available for college level academic, vocational and technical training. Only 5% of incoming students are prepared for college level math classes and 20% of the student body is in literacy programs.

Population entering community colleges is becoming increasingly diversified (language, culture, home schooled, etc.).

First time college students are frequently afraid of failure and need personal contact in the college to successfully get started. This is particularly evident in disadvantaged students.

Need ongoing research to update labor market information about existing, expanding, emerging and declining businesses. Labor market information should be used to identify needs then to be pro-active to look for funding to meet that need.

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For a community college to add a job specific curriculum, the college must successfully place twelve students per year in that field of work.

It is difficult to manage long-term training with only occasional grant funding. Colleges need stable funding streams to adequately prepare for ongoing training programs

Colleges need a way to share information between the workforce system and colleges to make sure services are coordinated.

Colleges in collaboration with the workforce system need a seamless system for life long learning.

High schools and community colleges can share facilities in order to provide more technical programs. For example: a college is using a welding classroom at a local high school and is able to offer a welding class without the capital required to add the space and equipment to the college facility.

2. Next Steps

Explore new and better ways to project the future labor market needs.

Work to better coordinate training and education services and information between the workforce system and colleges.

Continue the conversation between education and the workforce system focusing on current and future issues identification.

Encourage exposure to career information for younger children.

D. Work Session Results

Pacific Mountain held its annual Work Session in February of 2005. As a result of that work session, a committee structure, assignments and work plans were developed. The work plans for each committee is listed below.

Provide training programs at times and locations accessible to working people, and provide support services to assist in overcoming barriers to training.

Increase basic skills and ESL instruction that is integrated with occupational skills training.

Create and offer financial incentives to employers and low-income workers to increase training.

Provide financial assistance that enables working adults and ESL, Adult Basic Skills students to take advantage of education and training opportunities.

AGENDA FOR ACTION STRATEGIES AND GOALS Objective: Remove barriers for populations with unique obstacles to employment, and increase the number of employers who hire individuals with disabilities, women, and people of color in high-wage, high-demand occupations.

Strategies

Implement the Ticket to Work Program.

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Educate employers, especially employers from high-wage, high-demand industries, about the benefits of hiring individuals from target populations.

Continue developing accountability and program improvement mechanisms for increasing employment and earnings for target populations.

GOAL 4: To integrate workforce development programs to improve customer service.

Objective: Improve WorkSource services to business customers Strategy

Respond to the needs of business customers and implement coordinated strategies among WorkSource partners.

Objective: Make workforce development services from multiple providers a straightforward and effective experience for job seekers and youth.

Strategies

Improve customer service by collecting and using customer feedback, providing electronic services, and sharing information on customer service best practices.

Include all WorkSource partners in customer service training, including training in serving target populations.

Enhance the statewide information system (SKIES) for case management that is shared by WorkSource partners.

Maintain and continue to develop systems to track and report core WorkSource services.

Improve communication and collaboration among workforce development youth partners.

Find financial resources to sustain the WorkSource delivery system infrastructure.

Objective: Provide services that meet the unique needs of individuals from target populations, and reach out to these populations to increase their use of WorkSource services.

Strategies

Provide individuals with disabilities with equal opportunities to benefit from WorkSource services.

Continue outreach and capacity building activities with partners including tribes and community based organizations to ensure involvement of targeted populations within the WorkSource system.

Encourage diversity among the membership of local WDCs and WorkSource staff to reflect the diversity of our communities.

The leadership of ESD and PMWDC has begun an unprecedented process to review the governance and service delivery model of the Pacific Mountain Workforce Development Area. Our goal is to improve the integration of the services and programs delivered through WorkSource. We anticipate this will result in modifications in the governance of WorkSource, but we are still exploring options at this point.

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Policy Initiatives for the Pacific Mountain Workforce Development Council for the calendar years of 2006 and 2007 are listed below. In addition the Workforce Training and Education Coordinating Board’s strategies from High Skills, High Wages of 2006 are all listed. They are incorporated as the foundation for this plan.

AGENDA FOR ACTION INITIATIVES, STRATEGIES, ACTION ITEMS AND OBJECTIVES

WDC Policy Initiatives for Calendar Years 2006 & 2007

1. It is the policy of the WDC to continue to lead an effort to reinvent workforce education and training to meet 21st Century needs:

1. 1 Analyze current training models and recommend redesign when required.

1.2 Implement a work readiness credential

1.3 Identify industry sector initiatives to reaffirm a demand-driven workforce system. These sectors and industries include manufacturing (including marine manufacturing), power generation and distribution, warehousing, healthcare, tourism, and transportation.

Possible Action Items to reach objectives:

Analyze the effects of globalization on our local economies in order to build a proactive economic development strategy

Provide rapid, collaborative customized training to growing businesses Identify marketing needs and opportunities Influence state direction by communicating the message of the Policy Initiative Extend to business access to K-20 network on a cost recovery basis

2. It is the policy of the WDC to expand and diversify the resources of the workforce system to meet increased demand for services:

2.1 Create a “WorkSource” system that does not distinguish between programs

Possible Action Item for this objective:

Establish “first responder” teams in each county to assist new and expanding businesses.

3. It is the policy of the WDC to seek partnerships to solve community workforce needs.

3.1 Maximize existing relationships and identify new partnering opportunities.

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Possible Action Item for this objective:

Map the use of existing resources.

4. It is the policy of the WDC to expand the design of our workforce programs to meet the needs of families.

4.1 Develop integrated services priorities Consider the need of families when developing service priorities. Prioritize workforce services to out-of-school youth

4.2 Promote diverse educational pathways

Possible Action items for this objective:

Examine the value of linking federal and state resources to establish a family approach to services.

Leverage WDC membership to develop a coalition of proponents to expand services in dropout prevention/intervention strategies.

WDC Policy Strategies

In accordance with the High Skills, High Wages 2006: Washington’s Strategic Plan for Workforce Development, Pacific Mountain Workforce Development Council has developed and implemented strategies that support the strategies of Washington’s Strategic Plan. These include, but are not limited to, the following:

Strategy 1.2 Expand the Dropout Prevention Initiative to more high schools.Leads: Governor, OSPI, ESD, Workforce Board and WDCs. This provides a strategic opportunity to increase high school graduation rates.

Strategy 5.3 Provide WIA Title I resources to help student access and retention, including upfront “bridge” funds. Lead: WDCs.

Strategy 6.1 Create and take advantage of opportunities to redirect resources to front line services. Leads: ESD, SBCTC, DSHS, and WDCs.

Strategy 9.1 A wide variety of local organizations will pilot the Work Readiness Credential. Leads: Workforce Board, WDCs, Community and Technical Colleges, and Chambers of Commerce.

Strategy 11.4 Develop expertise in the WorkSource System in order to better serve the needs of local employers in key industry clusters. Leads: ESD and WDCs.

Strategy 12.1 Rapidly link dislocated workers with appropriate employment services and retraining programs. Leads: ESD, SDCs, and SBCTC.

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Strategy 16.2 Co-locate WorkSource Centers and establish affiliate sites on more community and technical college campuses. Leads: Governor, Legislature, ESD, SBCTC, and WDCs.

Strategy 16.6 Pilot the co-location of Labor & Industries Vocational Rehabilitation Services at WorkSource Centers. Leads: L&I, ESD, and WDCs.

The Pacific Mountain Workforce Development Council actively pursues resources and creates coalitions to continue its role as a demand-driven, strong advocate and partner of strategies that support regional economic development. According to the Washington State Department of Community, Trade & Economic Development, sixty to eighty % of all new jobs are created by existing businesses. Local companies are valuable resources that communities cannot afford to ignore or lose. The jobs they generate add employment and create new businesses and tax revenues to boost local economies.

One of the means for local area’s to develop and implement their Economic Development Strategies is to rely on the expertise, funding and investment opportunities and network relationships that various organizations within our Work Development Area can provide. The following are a list of some of the resources our region utilizes to stimulate economic growth and enhance employment opportunities.

WDC Programs

Local programsOlympia has no corporate or personal income tax, and no inventory tax. Thurston County offers exemptions on sales and use tax for manufacturing equipment, repair and replacement parts, and labor; for manufacturing machinery and equipment used for research and development; and for warehouse/distribution facilities and equipment. A tax credit of up to $2 million is available for research and development in the high technology industry. Tax exempt revenue bonds for manufacturing, ranging from $1 million to $10 million, are also available.

State programsThe state of Washington offers a number of incentive programs to attract new and expanding businesses to the state. Among them are B & O tax credits; sales/use tax deferrals for technology and manufacturing companies as well as for firms relocating or expanding in distressed areas; and loan programs that apply to rural areas and the redevelopment of Brownfields.

Job training programsSouth Puget Sound Community College provides specialized job training for public and private employees, contracts with businesses to provide specialized job training, and operates a comprehensive Cooperative Work Experience program. The Washington state Job Skills Training Program offers employers a 50 % match for training costs. The federal Workforce Investment Act (WIA), formerly Job Training Partnership Act (JTPA), may match up to 50 % of wages for on-the-job training of dislocated workers.

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This Local Strategic Plan represents the Pacific Mountain Workforce Development Council’s efforts to maximize the efficient use of resources available under title I-B of the Workforce Investment Act (WIA) of 1998 and the Wagner-Peyser Act, as amended by Title III of WIA.

This Local Strategic Plan is submitted for the period of July 1, 2007 through June 30, 2009 in accordance with the provisions of the Workforce Investment Act Title I-B and the Wagner-Peyser Act, as amended by Title III of WIA. We further certify that we will operate the Workforce Investment Act Title I-B programs and services in accordance with this Plan and applicable federal and state laws and regulations.

DATED THIS day of , 2007

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PACIFIC MOUNTAIN WORKFORCE BOARD OF COUNTY COMMISSIONERSDEVELOPMENT COUNCIL Thurston County, Washington

Nancie Payne, Chair Chairman

Date Commissioner

Commissioner

Assistant Attorney General ATTEST:Approved as to Form Only

Clerk of the Board of County Commissioners

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