New Report Shows Idaho Economy Declining

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Story Published: Jul 7, 2008 at 10:19 PM MST

Story Updated: Nov 20, 2008 at 10:49 PM MST

By Wes Horrocks

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Idaho's economy is at a zero growth rate and flirting with recession, that according economic consultants with Zions Bank. Most of the decline is due to problems with the local housing market and unemployment rates, but economists say the slowdown shouldn't last too long.

Mark McOmber, Zions Bank Branch Manager said, "In 2008 our economists are telling us that we had a flat economy in Idaho with zero-percent economic growth." In fact, economic consultants with Zions Bank say home construction and job growth are taking the hardest hit. In the last 12 months about 3,200 jobs have been cut statewide.

But local economists with the Department of Labor say overall things aren't too bad. Scott Hobdey, Regional Economist with the Dept. of Labor said, "In our area residential construction is down, but total construction-I think I just did a study this morning-we have 33 more total permits in Southeast Idaho than we had last year at this time."

The economic outlook also shows that Idaho's unemployment rate is climbing. Hobdey says there are enough people to fill they jobs, they just need more training. "And its not just the welder's hood and sparks anymore-a lot of computer related activities, that you have to have some savy. And you have to know how to fix those things."

On the bright side the report says the economic problems should only last until the end of the year. And McOmber says whether the outlook is postive or negative it's needed to help everyone make good choices. "It also helps our clients and our fellow business members in the community with their future business decisions."

Channel Three News also spoke with Jeff Thredgold, an economist in Utah, who put the report together-he tells us that this kind of decline happens every 10 years. He added to just batten down the hatches-we'll get through it.

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