Montana is one of two states with wage growth outpacing inflation

HELENA, MT -- Joining Montana Department of Labor & Industry (DLI) Commissioner Sarah Swanson, Governor Greg Gianforte on Sep 4th, highlighted new data showing the strength of Montana's economy.

“When you couple our strong Montana worth ethic with our pro-business, pro-jobs policies, it comes as no surprise to know that Montana’s economy is on the move,” Gov. Gianforte said. “As evidenced in the pages of this report, Montanans are better equipped to handle still-high inflation thanks to our steady job and wage growth.”

In DLI’s 2024 Labor Day report, key growth indicators such as employment growth, income growth, and economic production are measured to provide a detailed examination of the state's economic performance.

During a press conference at the state capitol, the governor highlighted several statistics on the labor market, job growth, and wage growth.

The report indicates that under Gov. Gianforte’s leadership, Montana’s labor force reached a record high of 580,000 people in 2023, with more than 10,000 Montanans entering the labor force last year alone. That ranks Montana as eighth in the nation for fastest employment growth since 2020.

Keeping pace with available labor, employment grew by 1.6% in 2023, translating to 8,700 jobs added to the market last year. According to DLI, this growth represents a return to more sustainable growth for the state, following two years of rapid growth exiting the pandemic.

When it comes to wage growth, Montana ranks second in the nation for fastest wage growth since 2020 and the average wage earned by Montana workers reached $57,230 in 2023, a 5 percent increase over the year.

Notably, Montana is only one of two states in the nation where wage growth has outpaced inflation since 2020.

"Thanks to Governor Gianforte's efforts to cut red tape and his pro-business policies, more businesses are hiring, wages are rising, and our economy is growing," said Swanson. "While businesses continue to face workforce shortages, the Montana labor market is beginning to ease as 10,000 workers entered the labor market in 2023.”

Highlighting the growth in health care and construction jobs, Commissioner Swanson noted that each sector added 2,340 new jobs and 880 jobs, respectively.

Joining the governor and commissioner for the press conference was David Smith, executive director of the Montana Contractors Association, who shared, “In February 2020, there were a little over 30,000 people employed in construction in Montana. Today, there are over 39,000. There are problems ahead, although. A recent survey of contractors across the west showed that 96% have positions open and available to hire.”

Since taking office, Gov. Gianforte has prioritized investments to develop a highly skilled, highly qualified workforce. In 2023, the governor nearly doubled the Montana Trades Education Credit, offering employers credit for employee education and training and expanded work-based learning opportunities for Montana students.

Creating the best environment for business and more opportunities for Montanans is a top priority of the Gianforte administration. Last spring, the governor was proud to deliver the largest tax cut in state history, providing income tax cuts for Montanans at every level, as well as immediate and long-term property tax relief.

In addition, the governor has reformed the state’s tax code to cut red tape and promote business investment and job creation, attracting businesses from around the world to Montana.

To view the 2024 Montana Labor Day Report, see here.