Boom brings big wage gains

Font Size:
Default font size
Larger font size

The energy boom has meant healthy wage gains for workers across Wyoming.

Between third quarter 2002 and third quarter 2007, average wages in the state increased $190 to $734, or an increase of 35 percent, according to the Research and Planning Section, Wyoming Department of Employment.

During roughly the same period, from second quarter 2002 to second quarter 2007, the Wyoming Cost of Living Index increased by 24.7 percent.

"We know we can't have these kinds of wage increases without additional time worked," said Tom Gallagher, manager of Research and Planning. This could be a result of more hours worked or more days on the job.

He added that while the gains are positive, there is not a one-to-one relationship between a dollar paid out and the way it rolls around the local economy.

That's partly because Wyoming has a large number of nonresident workers, who spend a portion of their incomes in home states.

As income grows beyond what is required for daily needs, part of the extra money also might end up at regional centers outside the state like Salt Lake City or Denver.

While energy companies can move into an area rather quickly, the support infrastructure like retail trade and health care services lag.

If the expansion were more gradual and sustained across all sectors, it's likely more wages would be spent locally, Gallagher said: "The local economy, in many cases, just doesn't have the capacity to absorb it."

Gallagher said picking a point in time for an analysis also may correspondent to a peak in activity that is not representative of the entire period, but in most cases, the weekly wage figures probably reflect real trends.

Business Editor Tom Mast can be reached at tom.mast@trib.com, or call 307-266-0574.

Print Email

/business
 
Sponsored by:

Connect with Us

TribTown