The economy in La Plata County is showing healthy signs of growth and diversity, according to new report from the Region 9 Economic Development District.
“We’re on an upward track,” said Robert Sonora, director of the Office of Business and Economic Research.
Population growth has been strong, unemployment has continued to fall and many other economic indicators from 2014 look positive, according to the report.
La Plata County’s population growth has exceeded the four other county’s in the economic district by growing about 1.3 percent from 51,411 in 2010 to 53,446 in 2013.
This growth is likely a reflection of job creation in the county, said Donna Graves, the author of the report.
At the same time the labor force has slightly declined in La Plata County, and this could mean that more retirees are moving to the county, which could be positive, said Roger Zalneraitis, executive director of the La Plata County Economic Development Alliance. “It doesn’t have to be a drain,” he said.
This population just brings a different demand for services, health care and infrastructure than a younger generation.
While the report was positive, it did not reflect the continued declines in the gas-and-oil sector during 2015 that could ripple through the local economy.
“We’re starting to see the layoffs rumble through the gas-and-oil sector,” Zalneraitis said.
These declines have been driven by low natural gas prices that are not predicted to rise until mid-2016, according to the U.S. Energy Information Administration.
However, the county’s economy could be diverse enough to continue growing while gas prices are low, Sonora said. While San Juan County, New Mexico, will likely struggle much more.
In La Plata County, tourism is still the dominate base industry. The county’s base industries bring in money from outside the economy and support about 23,400 jobs. Tourism is responsible for about 6,000 jobs or 26 percent of those jobs.
However, both Zalneraitis and Sonora would both like to see continued growth outside of tourism to bring the percentage of base jobs reliant on tourism down to 20 percent or fewer because the industry is seasonal and susceptible to decline during recessions.
mshinn@durangoherald.com
