Idahoans will experience 'pain' with economy
BOISE (AP) — Idaho will likely lose another 13,500 nonfarm jobs next year because of a state economy that's in its worst shape in a quarter-century, the state's chief economist warned Friday.
"In terms of the economy, what we're going to be experiencing is pain," Mike Ferguson told reporters at an economic briefing.
Ferguson, who supplies Gov. C.L. "Butch" Otter with the forecast that helps determine annual state spending, says the state is deep in its "worst economic experience" since the early 1980s.
Idaho now ranks 47th in the nation in job growth, down from 21st in January. Only Arizona, Florida and Rhode Island are worse.
Ferguson said the state's nonfarm work force ie estimated to decline by 2.1 percent in 2009, even with the effect of whatever stimulus package the federal government might provide to help mitigate the deepening recession.
Since last October, Idaho's nonfarm employment has shrunk about 1.7 percent to 646,400, according to the federal Bureau of Labor Statistics. The state's 2009 employment forecast is based on national estimates that already incorporate the benefits of a stimulus package being discussed by President-elect Obama and Congress.
Idaho has enjoyed two decades of robust economic growth, buoyed by the rise of companies like Micron Technology Inc., the state's largest employer, and a booming construction industry that picked up steam in 2004 to help house a population that grew at the nation's fourth-fastest clip, behind only Arizona, Nevada and Utah.
Now, turmoil in the housing market and a glut of microchips that has forced Micron to lay off more than 1,500 workers in Idaho have bumped the state's unemployment rate to 5.8 percent, more than double the figure from a year ago.
While Idaho still comes in under the 6.7 percent national unemployment rate in November, the sting of the recession has been more abrupt here because the state's economy had been performing relatively better than most other states.
For instance, in January 2008, Idaho's unemployment rate was third-best in the nation. Now, it's 19th.
For the first time in his 24-year state career, Ferguson in February was forced during the middle of the legislative session to downgrade his tax revenue forecast for the fiscal year starting July 1. He reduced it again in September and the outlook has further soured since, though new figures won't be released until January.
On Dec. 1, Otter ordered state agencies to cut budgets by a total of 4 percent, or $130 million.
Otter also asked them to delay another $54 million in spending in case things deteriorate further. Agencies are ordering employees to take time off unpaid, the state Tax Commission this week told 63 temporary workers they'd lose their jobs a day after Christmas, and the Department of Health and Welfare is cutting Medicaid payments to Idaho hospitals, doctors and service providers by $35.2 million — all to save money.
"What we've observed over the past year is a dizzying degree of change in the economic outlook," Ferguson said.
"In terms of the economy, what we're going to be experiencing is pain," Mike Ferguson told reporters at an economic briefing.
Ferguson, who supplies Gov. C.L. "Butch" Otter with the forecast that helps determine annual state spending, says the state is deep in its "worst economic experience" since the early 1980s.
Idaho now ranks 47th in the nation in job growth, down from 21st in January. Only Arizona, Florida and Rhode Island are worse.
Ferguson said the state's nonfarm work force ie estimated to decline by 2.1 percent in 2009, even with the effect of whatever stimulus package the federal government might provide to help mitigate the deepening recession.
Since last October, Idaho's nonfarm employment has shrunk about 1.7 percent to 646,400, according to the federal Bureau of Labor Statistics. The state's 2009 employment forecast is based on national estimates that already incorporate the benefits of a stimulus package being discussed by President-elect Obama and Congress.
Idaho has enjoyed two decades of robust economic growth, buoyed by the rise of companies like Micron Technology Inc., the state's largest employer, and a booming construction industry that picked up steam in 2004 to help house a population that grew at the nation's fourth-fastest clip, behind only Arizona, Nevada and Utah.
Now, turmoil in the housing market and a glut of microchips that has forced Micron to lay off more than 1,500 workers in Idaho have bumped the state's unemployment rate to 5.8 percent, more than double the figure from a year ago.
While Idaho still comes in under the 6.7 percent national unemployment rate in November, the sting of the recession has been more abrupt here because the state's economy had been performing relatively better than most other states.
For instance, in January 2008, Idaho's unemployment rate was third-best in the nation. Now, it's 19th.
For the first time in his 24-year state career, Ferguson in February was forced during the middle of the legislative session to downgrade his tax revenue forecast for the fiscal year starting July 1. He reduced it again in September and the outlook has further soured since, though new figures won't be released until January.
On Dec. 1, Otter ordered state agencies to cut budgets by a total of 4 percent, or $130 million.
Otter also asked them to delay another $54 million in spending in case things deteriorate further. Agencies are ordering employees to take time off unpaid, the state Tax Commission this week told 63 temporary workers they'd lose their jobs a day after Christmas, and the Department of Health and Welfare is cutting Medicaid payments to Idaho hospitals, doctors and service providers by $35.2 million — all to save money.
"What we've observed over the past year is a dizzying degree of change in the economic outlook," Ferguson said.
