Employment figures mixed

SANDPOINT - Bonner County's June unemployment numbers are higher than state averages but lower than national averages, according to new figures released by the Idaho Department of Labor.

Bonner County's 4 percent unemployment rate for June is lower than May's 4.5 percent, but still above the June state average of 3.8. The state average jumped .2 percent from May, which was the largest May to June increase on record.

Nationally, unemployment remained unchanged at 5.5 percent, marking the 81st month that Idaho has outperformed the nation.

Record gas prices and the free-falling timber industry are key contributors to Bonner County's unemployment numbers, said Kathryn Tacke, regional economist with the Idaho Department of Labor.

“There have been so many problems in the sawmill industry, starting in 2006, and they've only gotten worse,” Tacke said.

Tacke cited recent increases in lumber prices as a positive sign for the industry, but said prices are still much lower than historical averages. Adding to the industry's woes are skyrocketing fuel prices, which spike costs for transporting material and operating machinery.

While Tacke said non-lumber manufacturing has continued to be Bonner County's strong point, she said increased prices for raw materials, various commodities and fuel could adversely affect some manufacturers.

High fuel prices and a struggling U.S. dollar would normally spell doom for a tourist community, but Tacke said that in certain scenarios, both could actually stimulate the local economy.

Viewed optimistically, Tacke said the weak dollar could bring an influx of Canadian and European tourists to the area, and high gas prices might keep locals from traveling outside the area for their shopping needs.