HELENA — The Montana Department of Labor and Industry (DLI) says there are signs the state’s tight labor market may be beginning to ease.
That was one of a number of insights in the department’s annual Labor Day Report on the Montana economy. Gov. Greg Gianforte and other leaders unveiled the report Wednesday in Helena.
DLI says Montana’s labor force reached a record high of more than 580,000 people halfway through this year, with more than 10,000 workers joining the labor force in 2023. The state has also ranked fourth in the nation since 2020 for people moving in, with 51,000 coming in from 2020 to 2023.
In addition, the department says Montana has ranked eighth in the nation for employment growth, adding more than 30,000 jobs since 2020 and 8,700 in 2023. Professional services was the fastest-growing private-sector industry, while health care added the most new jobs.
However, the report noted there are still nearly two job openings for every unemployed person in the state, and Montana’s aging population — and increased retirements — continues to be a factor in people leaving the workforce.
“As we look to the future, an essential ingredient in continued economic growth is ensuring that all of our businesses have access to a skilled and experienced workforce,” said Sarah Swanson, commissioner of labor and industry.
One industry with a particularly high need for workers is construction. David Smith, executive director of the Montana Contractors Association, said the number of Montanans working in the industry has risen from around 30,000 in 2020 to more than 39,000 today.
He said a recent survey around the western U.S. found 94% of contractors are having difficulty hiring, and worker shortages are contributing to delays for more than 60% of projects.
“MDT has 1,200 bridges that need to be fixed, the average age of schools just here in Helena is over 60 years, and we have wastewater and water systems such as the St. Mary Diversion Dam that are in crisis mode – so there’s plenty of work to do,” Smith said. “And the most important thing I would say is that this is not your grandfather's construction; this is construction that has drones, artificial intelligence, 3D building and virtual reality.”
The report says the average wage for Montana workers grew to $57,230 in 2023 – a 5% increase from the previous year. The state ranked second in the nation for fastest wage growth since 2020.
