Most economic sectors in the Inland Northwest experienced growth this year, and even those that faced challenges are somewhat optimistic about 2015. 

The overall job market in Spokane County improved as the average employment rate for the year fell to 6.2 percent, from 7.9 percent last year and 8.8 percent in 2012. 

Equally as encouraging was that growth in jobs occurred across a number of sectors, including health care, finance, and education, among others.

Contributing to the lower unemployment rate, however, was a shrinking labor pool, due in part to outmigration but attributed more to an increase in the number of workers who are retiring.

Also, one economist says jobs didn’t grow as quickly as he expected they would this year. Next year, he’s anticipating a 1 percent to 1.5 percent increase in total employment in Spokane and Kootenai counties, which would be similar to—or slightly higher—than the rise in employment this year. Several factors—rising interest rates, unpredictability caused by the Affordable Care Act—could hamper that growth, however. 

In the real estate market, investors are showing strong interest in multifamily housing projects, with other types of commercial properties garnering strong interest. The exception is the office market, which is characterized as still being in recovery. Even that market, though, is stronger than it had been in recent years.

Spokane-area home sales through the first 11 months of 2014 increased 4.6 percent, compared with the year-earlier period, and median sale prices rose 2.1 percent. Continued, sustainable growth is projected for the next two years.

One longtime Spokane-area homebuilder says this fall has been his busiest in six years, and he’s expecting a strong start to 2015. Commercial contractors also are projecting a good level of activity next year, although they note that many companies, from a staffing standpoint, aren’t back to prerecession levels yet.

A couple of the big projects that have been in the works all year—the Davenport Grand Hotel and the Spokane Convention Center expansion across the street from it—are expected to come on line later next year, and those involved in the tourism trade expect the new or expanded venues to draw more events and visitors. 

Conventions to be held here next year include the World Science Fiction Society convention in August, which is expected to draw between 5,000 and 7,000 people; the 2015 international Adventist-Laymen’s Services Industries conference, also in August and slated to attract 3,000 delegates; and the Council of Undergraduate Research conference, which about 3,000 people are due to attend in April.

Retail sales are expected to improve as consumer confidence rises. One mall operator here is projecting a 2.5 percent increase in sales in 2015, which is similar to the gains reported this year. Others say sales are increasing despite continued pressure from online retailers. 

In the finance sector, Spokane-area banks and credit unions expect loan and deposit growth to remain strong next year. Some are expecting interest rates to increase toward the middle of the year, and they speculate that could lead to more lending activity in the first half of the year. 

The outlook for the health care sector is somewhat murky as the industry adapts to broad implementation of the Affordable Care Act. 

Some industry executives say they have seen some positives from a larger insured population, but they say it’s too early to say conclusively whether the federal program is benefitting the industry.

One economic development manager is reporting an increase in technology startup activity during the past 18 months, and others in the industry say sales are increasing, with one manufacturer reporting record sales and expecting another record year in 2015.

In the agricultural industry, the market for soft-white wheat, the predominant crop in Eastern Washington, could be softer next year due to a plentiful supply worldwide. That market is further challenged by current crops that suffered from dry conditions this past fall, followed by a hard freeze. Industry experts say, however, that demand is better than it is for other types of wheat.

On the other side of the state line, Kootenai County is seeing its job market tighten up; in October, it reported a 3.9 percent unemployment rate. While the county will lose a major employer in Kimball Office Inc., which has announced plans to close its Post Falls plant next year, growth in other areas of the manufacturing sector is expected to offset that loss. 

Wood-products producers report stronger demand and higher prices as new-home construction ticks upward. That demand is expected to increase at a greater rate next year, along with a projected increase in new-housing starts nationwide.

In the mining sector, prices for both gold and silver are down from a year ago, but still high by historic standards. Some experts, however, expect prices and demand to cycle back upward in the next year or two.

—Linn Parish