Opinion

<< Previous   of   Next >>   ADVERTISEMENT   HAVE YOUR SAY Feel strongly about something? Share it with the community by writing a letter to the editor. You’ll need to include your name, address and daytime phone number. (We’ll only publish your name and hometown.) We reserve the right to edit letters, but if you keep yours to 250 words or less, we won’t ask you to shorten it. If your letter is published, please wait 30 days before submitting another. Send it to: E-mail: letters@heraldnet.com Mail: Letters section The Herald P.O. Box 930 Everett, WA 98206 Fax: 425-339-3458 Have a question about letters? Contact Carol MacPherson (cmacpherson@heraldnet.com or 425-339-3472).   Published: Wednesday, March 8, 2006 Public, private investments are paying off in job growth John Burbank / Syndicated Columnist It finally looks like our state's economy has built up some good, job-producing momentum. Let's cheer the numbers - and consider why they are so positive. Last year Snohomish County gained close to 16,000 net new jobs, while Pierce County picked up more than 8,000. Statewide we have pushed down our unemployment rate faster than the nation as a whole. It is now 4.7 percent, the lowest since 1999. Payroll employment has increased twice as fast as the national rate. This is a broad-based and shared recovery. The construction, professional services, retail trades, manufacturing, education and health-care sectors each gained more than 10,000 jobs this past year. The greatest job growth occurred in Snohomish County (more than 7 percent), and Whatcom County and the Wenatchee area ( 4 percent increase). And the good times continue to roll. In January alone the state gained more than 13,000 jobs. Spokane is a particularly compelling story. Spokane now has more than 4,600 new jobs compared to a year ago. Looking back over the past 10 years, manufacturing, retail trade, financial, professional and business services, as well as education and health services have all added more than 5,000 jobs each. And not only are there more jobs in Spokane, but they pay better. This past year, for the first time in five years, wage growth in Spokane exceeded the rate of inflation. So workers are getting an actual raise. Part of the credit must go to the state minimum wage, which is indexed to inflation. While minimum-wage workers don't get a raise above inflation, the fact that the minimum wage includes an annual cost-of-living adjustment, the way Social Security does, means that at least these workers don't lose ground. Part of the credit for wage growth also goes to increases in productivity. Productivity measures how many things and products or how much information a worker can produce over time. Increases in productivity, thanks to innovations and investments, enable workers to produce more in the same amount of time. In my line of work, consider the efficiency of a desktop computer over a typewriter. Businesses strive for increases in productivity. Where do they come from? A lot is generated by private entrepreneurial initiative. Such initiative benefits from and builds on government funding of basic research, K-12 education and higher education, as well as an efficient transportation infrastructure. Consider that the Internet started from a U.S. military project, that an educated workforce is essential for implementing innovations, and that with global markets transportation is a key to new markets, profits and jobs. We recognize productivity in high-wage industries like aerospace. It is also an important factor in lowering costs and increasing profits in low-wage industries. For example, retail trade productivity has increased by more than 25 percent since 2000. Our minimum wage that keeps up with inflation, plus market-driven increases in productivity, create a recipe for economic success that can be enjoyed up and down the income ladder. That's the key - economic growth that helps all of us. Ultimately, that's how employers and workers can prosper. All this translates into increases in family income. Spokane provides a great example. The number of workers making less than $20,000 in Spokane dropped by almost 5,000. That means that the number of "working poor" jobs fell by more than 10 percent. Where did these jobs go? They became better paying jobs, so the number of workers making between $20,000 and $30,000 increased by that percentage. And this had a chain reaction effect up the income ladder. While more than 3,000 fewer workers made between $40,000 and $50,000, almost 4,000 more workers made between $50,000 and $60,000. There was some push even at the higher income levels, with significant shifts in family incomes from between $70,000 and $80,000 to family incomes between $80,000 and $90,000. Where does this new money go? Back into the local economy, creating more jobs and growing economic prosperity. Let's not forget that we still need thousands of more jobs - 70,000 in fact - to bring us back to full employment and keep up with population growth in our state. But we have some fundamentals in place for job and income growth: the blossoming economy, increases in productivity, a minimum wage that keeps up with inflation, and public investment in education and transportation. It's a working formula. John Burbank, executive director of the Economic Opportunity Institute (www.eoionline.org), writes every other Wednesday. Write to him in care of the institute at 1900 Northlake Way, Suite 237, Seattle, WA 98103. His e-mail address is john@eoionline.org.

1. Arlington brothers’ fight led to death, police say 2. Detectives consider slaps to father lethal 3. Woman found dead at Bothell house fire 4. Two teens hurt in collision near Granite Falls 5. Lottery win helps Lake Stevens convenience store owner pay bonuses 6. Everett man shot in groin; two men, one woman are arrested 7. I-5 car chase was result of driver's medical condition 8. CBS cancels ‘As the World Turns’ 9. Jail inmates’ meal complaint omits a crucial fact 10. Locker dips toe in NFL pool 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• Zambian woman thanks students for their help • Food banks see rise in use • ‘Making Spirits Bright’ in Edmonds • Wolfpack takes aim at state • Seahawks help students smile • 95 and still volunteering • Sno-King joined by local TV king • Veterans back for Wildcats • Lynnwood seeks to plug $2 million budget gap • Boeing will build, flight test and deliver 787s in South Carolina to spe ... • Snohomish County EDC promoting job growth in key industry clusters • $4 million grant to advance brain tumor research has Everett links • Providence medical center construction tops off its 12-story steel frame ... • Tulalip affordable housing project to be financed by KeyBank, Raymond Ja ... • Arlington's Lak of Ink has a growing following for Luke Kooyman's creati ... • Bank of the Northwest formed • Cascade Bank earns $1.6 million