Montana’s workforce sees record gains but some sectors still seeing shortages

(The Center Square) – Montana saw record workforce growth in May thanks in part to its business-friendly environment, but some sectors in the state still face worker shortages.

Montana’s labor force grew by an estimated 2,168 workers in May, the Montana Department of Labor & Industry reported. Total employment also set a record and hit its highest point in the state’s history, posting gains of 1,559 workers.

The state’s job growth can be attributed to its pro-business policies, Tanner Avery, communications director for the Frontier Institute, told The Center Square.

“Montana’s workforce is growing at an impressive pace, in large part thanks to our state’s pro-business environment,” he said. “A combination of the governor’s focus on regulatory relief efforts, historic tax cuts, and a responsible state budget have made it possible for businesses to grow and hire new staff.”

The state is at full employment, Todd O’Hair, president/CEO of the Montana Chamber of Commerce, told The Center Square. But some of communities that have seen a big influx of tourism have struggled with workforce shortages.

“A number of hotels were having to keep a certain percentage of their hotel rooms unsold because they didn’t have staffing to be able to address it,” he said.

That workforce shortage is an issue throughout the state and especially in the service industry or temporary, seasonal types of jobs, O’Hair said.

Over the course of the last year and a half, Montana has seen its economy boom, he said, especially in the western part of the state.

“We’ve seen a lot of business interest in the state looking to relocate or expand business operations in the state. We’ve seen some remote work move into the state,” O’Hair said.

But the workforce shortage has some businesses reluctant to expand, according to O’Hair, which has “created a bit of a headwind in some cases.”

The Frontier Institute wants the state to become more business and worker-friendly by removing regulatory barriers that Avery said prevent the creation of affordable housing in Montana cities.

Avery said that while Montana’s economy appears to be going strong, there is little doubt that inflation is having a serious impact.

“The federal government’s addiction to reckless spending plays a large part in fueling the inflation we are seeing today, but one often overlooked aspect is the role regulations play in raising consumer costs,” he said.

Hundreds of new regulations that created more than $200 billion in added costs and over 135 million hours of additional paperwork have been implemented in the first two years of the Biden Administration, according to Avery.

Avery cited a Mercatus Center study that said increasing federal regulations by 15% will raise the cost of consumer goods by a full percentage point.

“Without a meaningful reduction in federal government red tape and a return to fiscal responsibility in Washington D.C, it is likely Montanans will continue to be harmed by inflation,” he said.

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