The economy in Montana is continuing to expand, including wage growth increasing and outpacing inflation, according to a state report.
A 2024 report from the Montana Department of Labor & Industry said, “Montana ranks 2nd in the nation for fastest wage growth since 2020.”
“Wage growth in Montana fell behind in the 90s and through the early 2000s, but we've really been catching up,” explained James Lautenschlager, an associate professor of business at the University of Providence.
According to the Montana Department of Labor & Industry, in some ways Montana is staying ahead of the national average economically, noting:
- The average wage earned by Montana workers hit $57,230 in 2023, growing by 5% in one year.
- The unemployment rate in Montana is 3.1%, with total employment growing by 5.9% since 2020.
“By and large, though, unemployment is fine in Montana, and we're seeing wage growth and a lot of that is offsetting some of the inflation that's taking place,” said Lautenschlager.
Additionally, the report noted:
- While Montana is seeing positive wage growth and low unemployment rates, the cost of housing is still high.
- Housing prices remain a primary driver of inflation for Montanans earning median wages.
- Montana saw a 70% increase in home values from the last 5 years.
“With demand for houses on the rise and just a finite supply, we've seen an outsized growth in the value of homes, which also hurts the median home buyer because with modest wage growth and outsized gains in housing value, it makes affordability become an issue for the average Montanan,” Lautenschalger explained.
However, despite national inflation challenges, Montana is staying ahead for the time being.
Lautenschalger added, “I think we've seen really strong economic growth in Montana and it's outperformed the national average for a period of time now, which has been, as a Montanan myself, has been encouraging to see.”
