By Leslie Kelly

Special to the Weekly

Although employment is up across the San Juan Islands and the economy seems to be rebounding, residents still face stagnant wages while the price of everything from rent to groceries is increasing.

That was the message in a recent report by the San Juan County Economic Development Council. Victoria Compton, executive director of the economic development council, called the report “mostly positive.”

“It’s clear that we are in economic recovery,” she said. “We’re a few years behind the rest of the nation. We’re just starting to see the natural climb out of the recession.”

The report included data from the Washington Employment Security Department, the U.S. Bureau of Labor Statistics and Western Washington University.

Among the notable results is that unemployment in the San Juan Islands has dropped from 6.2 percent in May of 2012 to a current rate of 4.4 percent. The highest unemployment listed was in January 2012 at 8.8 percent.

Compton said that included growth in manufacturing and technology jobs, as well as a return to full force labor in other areas such as retail and construction has gotten the number of unemployed back down.

“It’s only been recently that construction has begun to come back,” she said. “And we’ve seen a growth in small manufacturing and tech.”

Examples of that, she said were the manufacturing of parts for Honda outboards and filters for NASA, both which are done in the San Juans.

She said she’s also seen a growth in technology companies that produce apps.

“They can do their work anywhere, but they’ve decided to work and live here because it’s a nice place,” she said.

According to the state Department of Revenue, business growth on the islands was reported to be up 6,000 firms or companies from 3,000 in 1994 to 9,000 in 2014. Those figures are based on sale tax reports given to the state.

One thing that has been an issue for workers living on the San Juan Islands is wages. While costs of goods and services has increased, wages have not.

“The best way of looking at it is that if a tomato cost $1 in 2007, it now costs $1.50,” said Compton. “But as a consumer, you are still only making the wages you were in 2007.”

That holds true for everything, including rents, which she said are higher here than other places in the state, like smaller towns in eastern Washington, because of the appeal of living in the San Juans.

“People from Seattle, where wages are better, are still coming here to buy homes or rent vacation rentals,” she said. “So that means rents stay high and that’s a tough squeeze on workers here.”

With regard to how people are spending their money on the San Juan Islands, a majority goes for retail purchases. About 28 percent of all sales tax collected comes from retail businesses.

“On Orcas that number is 36 percent, about a third of all the dollars spent,” she said. “But we can’t tell from this (data) whether that’s residents purchasing goods or whether that’s tourists shopping here. There’s no way to gauge that.”

The data also doesn’t show what items people are spending their on. She also warned that just a purchase or two of mega yachts sold in the San Juans could sway that percentage.

As for other sales tax collected, about 20 percent was from construction projects. Utilities accounted for 6 to 10 percent depending on which island was studied, and accommodations and dining was another 11 to 13 percent. Transportation was only 1 to 2 percent of all sales tax collected.

Compton said she thinks transportation costs level out between the fact that residents have very short commutes to work, as opposed to the cost of leaving the islands via ferry.

In total, sales tax increased over all the county by 9.6 percent in 2015, from the 2014 figure. It went from $1.3 million to $1.43 million. While some comes from year-round residents, a good portion comes from summer tourism.

One of the crucial factors in spending on the San Juan Islands is the number of residents who are considered low income.

In a recent report by Orcas Power and Light Company, 19 percent of the population in the county lives below 150 percent of the federal poverty guidelines. That represents 1,500 households and 3,000 individuals.

To better describe that level, someone who is at 150 percent of the federal poverty level would make $17,505 annually, or $8.42 an hour. A family of two wage earners would make $23,598, at an average hourly rate of $11.35.

The power company conducted the study to try to determine how best to allot its utility assistance money. But Compton said it is an indication of the low and stagnate wages in the area. She said she hopes that non profits and social services can use the information to apply for more grants and government loans to help low wage earners and their families.

Meanwhile, the economic development council is working to enhance business on the San Juans. It is undertaking a branding plan whereby products made on the San Juans will bear a “San Juan Islands Made” logo, be it fudge, jewelry, or Honda parts. A website is being created to market that plan.

And the council is offering mentoring to existing and new businesses.

“We’re hoping to encourage those people who have been thinking about starting a business to go for it,” she said. “They may be afraid or not know what to do. So we will offer help with business plans and pitches, and we are sponsor trade shows. We’re even planning our own ‘Shark Tank’-type competition.”

For more on that go to www.sanjuansedc.org, or call Compton at 378-2906.