The recently released Southwest Colorado Index for 2015 examines a variety of economic indicators and trends in this region.
The report includes population job sectors, base industries that bring outside money into the area, unemployment rates, per capita income, and total personal income, which includes things like Social Security, interest, dividends, royalties, money earned outside the area, and rent.
It was produced by the Region 9 Economic Development District and covers La Plata, Archuleta, Montezuma, San Juan and Dolores counties, and also the Southern Ute and Ute Mountain Ute Indian Tribes.
Employment and total personal income data is from 2014; population and per capita income data is from 2013.
La Plata County has the highest population of the five counties, listed at 53,446 in 2013. It led population growth since 2010 at 1.3 percent, just over 2,000 people. Second is Montezuma County at 25,650 in 2013, up marginally since 2010. Lowest populations are San Juan and Dolores counties, which lost people from 2010 to 2013. Archuleta County is listed with 12,168 people in 2013, up 108 from 2010.
The index estimates that the five county region now has 98,000 people, up from 93,963 in 2013. Much of this is "amenity migration," including retirees and second home owners with retirement and other non-wage income, the report says.
Service sector jobs dominated the job categories in the region from 2001 to 2014, followed by government, retail trade, and construction jobs. In 2014, service sector jobs were 40 percent of total jobs and provided 33 percent of job income in the region. The service sector includes high paid professionals and low wage, low skill jobs.
Local, state and federal government jobs were 18 percent of the regional total in 2014. Retail trade was 11 percent, and construction was 10 percent.
In La Plata County, tourism accounted for 26 percent of base industry jobs in 2014, followed by households at 20 percent (the low among the five counties), and regional services at 16 percent.
The other 27 percent of total jobs in the region meet the product and service needs of local residents.
Except for La Plata County, regional per capita income in 2013 was below the state and national levels, the report says. The national per capita income was $44,765. The state was $46,897, and La Plata County was at $46,633. Per capita income is figured by dividing total personal income by population.
In La Plata County, 67 percent of total personal income is from local jobs, while 27 percent is from interest, dividends, and rent, and 7 percent is transfer payments. Residents age 60 and older have 16 percent of total personal income in La Plata County, but that share is higher in the other four counties. Archuleta County is the highest with 23 percent of income to residents age 60 and older.
Liveable wages
The index also includes housing costs and liveable wages.
It says that, "in many communities (with the exception of Dove Creek, Bayfield, and the Town of Dolores) actual rents were up to 45 percent higher than the Fair Market Rents determined by the Department of Housing and Urban Development (HUD). ... When rent expenses are linked to livable wages, most families need to earn above the basic wages per hour, or get a second job, to obtain the income needed for affordable rental housing."
Home ownership is out of reach for many families in the region, but based on the 2014 area median income as determined by HUD, "a greater percentage of families in each county would qualify for a median priced home than in 2008."
Housing experts say that families should not spend more than one-third of their income on housing costs. But in a region where some counties have higher costs of living, a segment of the population is forced to commute long distances. That, the reports says, "adds to traffic congestion and air pollution, and takes more time away from their families."
The report figured 2015 rental costs for each town in the region and used 30 percent to figure the income needed. It lists $715 per month for a one bedroom rental in Bayfield, needing income of $28,600. A one bedroom unit in Durango would be $1,014, needing income of $40,560. Rent ($740) and income needed ($29,600) in Ignacio were extrapolated from HUD Fair Market Rents because of lack of local data.
Actual area rents are almost all higher than the HUD Fair Market Rents, although Bayfield is an exception for one and three bedroom rentals.
Liveable wages
Turning to livable wages, the index uses 2015 figures for housing, child care, food, transportation, health care, miscellaneous such as clothing, shoes, and household items, plus taxes and tax credits. La Plata County has the highest living expenses of the five counties at just over $27,000 for a single adult, $47,496 for an adult with a pre-school age child, and $58,500 for two adults with a pre-schooler and a school age child.
From there it figures livable wages in Bayfield at $11.74 for a single adult, $22.36 for an adult with a pre-schooler, and $27.57 for two adults with the two kids. For Ignacio the comparative figures are $11.15, $21.08, and $26.29. For Durango they are $13.44, $23.24, and $28.45.
"When we link our livable wage findings to average annual wages by sector in each county in our region, we find that most employment sectors do not provide enough income to meet the basic needs of a family of four, especially if there is only one bread winner in the household," the report says.
HUD listed the 2014 Area Median Income for La Plata County households at $72,900. But the index shows all but two job sectors in the county with annual wages well below that in 2014. The exceptions were mining/ utilities and finance/ insurance. Those are a very small share of total jobs in the five counties.
Full Report Online
Southwest Colorado Index: www.scan.org. Select the regional data tab, then data reports and then Southwest Colorado Index.
