Anaconda's economy ranks among the region's healthiest

The economic outlook for Southwest Montana for this coming year appears to be a mixed bag for Montana’s southwest region. Yet through it all, Anaconda-Deer Lodge County has seen many positives throughout the last year and the county’s economy sits as one of the healthiest in the region. 

As of November 2022, Southwest Montana has 43,162 employees and only 962 individuals that are listed as unemployed.

“The Labor force looks strong,” said John Kasperick- Economist for Northwestern Energy at the University of Montana Bureau of Business and Economic Research economic outlook forum in Butte. “Everyone that wants to be working is working right now.”

The unemployment percentage for Southwest Montana is at an all-time low of 2.2%. Locally, ADLC’s labor force numbers are in good shape entering the new year. As of November 2022, ADLC had 5,191 workforce members, with only 116 individuals being unemployed for a 2.2% unemployment rate, which is equal to that of Southwest Montana, and well below the state’s unemployment rate at the time of 2.9%. With covid’s economic havoc in the rear-view mirror, the growth of ADLC’s labor force now stands amongst the best in the region. Between 2021-2022, ADLC’s witnessed a 5.2% employment growth. The only other county in the region with a higher rate of employment growth was Madison County with an 11.5% rate. Kasperick noted that Madison County has the tourism sector benefitting them immensely and that the employment growth is a result of the post-covid tourism rebound in that area. 

Income and wages persist as an area of concern for residents of Southwest Montana. Currently, $950 stands as the average weekly wage in Southwest Montana, which is 7% less than the state average of $1,028. In 2022, ADLC held an average annual wage of $50,492, which was second in the region, once again, to Madison County. While ADLC’s average annual wages was above the southwest region’s average, it falls short compared to the state’s average of $53,456. 

Anaconda is still leading the way in the region when it comes to the cost of living. Sitting at 24.6% below the national average, Anaconda is the most affordable city in Southwest Montana with the next closest city being Butte, which is 20.8% below the national average. Comparatively, Bozeman sits 25.3% above the national average in cost of living, meaning that it is about half the cost to live in Anaconda as it would be to live in Bozeman. 

A part of the economic outlook forum was a look into the population of Southwest Montana and what demographics remain dominant in our area. Much to no surprise, growth in the area has been accelerating since 2015, with 2020-2021 recording the most growth for the region (+1.4%). The population of ages 65 and older persist as a key talking point. Montana currently owns the title of being the fifth-oldest state in the U.S. with 19.7% of residents being over age 65. At a local level, Southwest Montana sits well above both the state and national average, as the region currently has 22.7% of its population being over age 65. ADLC sits even higher than the national, state, and regional average, with our county have 25.5% of its population being over age 65.   

Kasperick wrapped up his presentation by providing his forecast for the future of Southwest Montana’s economy. While unemployment rates remain at an all-time low, Kasperick projects that the 2.2% rate could jump to 3.2% or higher within the coming years as a result of a looming slowdown in spending and construction. Kasperick also sees Southwest Montana as a region that is still ripe for more growth as the attractive cost of living could bring more major employers into the area.