by Dr. Kelley Cullen
Understanding the structure of the local economy and how it changes over time is important for promoting long-term economic growth in a region. And while it is true that having a dynamic economy, one that can respond to external shocks, is desirable, there is also much to be said for stability that comes with a steady distribution of jobs.
Over the past two decades, the employment shares claimed by the top five largest sectors in Walla Walla County have remained remarkably consistent and more concentrated than the broader state average. The lack of movement in the numbers might seem a bit boring to some observers, but to residents this absence of volatility should provide some comfort and allow for easier decision-making with respect to local employment and earnings opportunities.
Walla Walla Trends 1.3.5 Shares of Employment in the Five Largest Employing Sectors uses the two-digit North American Industry Classification System (NAICS) codes to determine the highest employing sectors for the county and benchmarks against the state.
With the Veteran’s Administration, the Army Corps of Engineers and the State Penitentiary, it is not surprising that the government sector is the largest. In fact, one of every five workers in the county is employed by federal, state or local governments. Educators employed by public K-12 districts often comprise a large portion of local government jobs in a county.
Over the past two decades, the share of government employment in the county has increased slightly - from 20 to 22%, an increase of around 1,200 jobs in total. Of that increase, 700 jobs were added in just the past five years.
Not only is the number of jobs key, but the earnings they bring to local families are important as well. Looking at data from the Quarterly Census of Employment & Wages (QCEW), in 2024, the VA Hospital’s nearly 500 jobs averaged earnings of nearly $90,000. The State Penitentiary’s 1,122 jobs averaged nearly $94,000 annually.
On the other hand, not all government employees are paid the same and public educators, nearly 1,600 jobs in 2024, averaged earnings of over $55,000.
The second largest sector in the county by employment is health care and social assistance. This sector is largely comprised of health care workers and has increased from 13% to 16% over the past two decades, or over 1,200 workers over the two decades. However, after a significant jump of 700 workers in 2014 to over 4,400 workers total, employment in this sector has remained flat over the past ten years. Since 2014, the share of this sector has fallen slightly, by nearly one percentage point (16.6% to 15.7%).
Similar in size, the third largest sector in the county by employment is manufacturing; its share has fallen slightly by less than a single percentage point, from 14.5% to 13.6% over the two decades since 2004. Manufacturing employment reached its peak in 2019 with over 4,000 jobs throughout the county but in the past five years. has declined slightly, by 150 jobs
Employment in agriculture is up over 600 workers in the past two decades, but with just over 100 workers added in the past five years. Over the past couple decades, the share of employment for agriculture has crept up from 12% to 13% of total employment for the county, placing the sector fourth overall.
Like the health care and social assistance sector, the share of retail trade – the fifth largest sector - has fallen by a single percentage point from 9% to 8% despite the number of employees remaining nearly flat over the past two decades.
The flat trajectory of share of employment by the top five sectors in the county mirrors and contrasts with the trends in nearby Yakima County & Benton County. Walla Walla Trends 1.3.6 Concentration of Employment in Top Five 2-Digit NAICS Industry Sectors compares the total share of employment made up of the top five sectors in each county. While Benton County enjoys more diversity among its sectors and hence a lower concentration ratio, Yakima County’s top five concentration and overall flat trend nearly exactly mirror that of Walla Walla.
So if the past structure of the local economy is an indication of what might come, this continuing strong decades-long stability in sustained employment by government, health, manufacturing, agriculture and retail trade sectors should allow for reliable and informed decision-making by firms, households and policymakers. And the stability should therefore provide a strong foundation for continued economic growth in Walla Walla County.