Wyoming’s economy is experiencing modest growth, with employment gains offset by challenges in the energy sector, according to the latest MACRO report from the Wyoming Department of Administration and Information, Oil Cite News reports.
While employment figures show stability, fluctuating prices and reduced output in coal, oil, and gas cast a shadow over Wyoming’s traditionally energy-reliant economy.
Statewide employment has grown by 1,700 jobs year-over-year, marking a 0.6% increase in August 2024. Wyoming’s unemployment rate remains steady at 3%, continuing a 17-month streak at or below that level. Natrona County led the employment gains, adding 800 nonfarm payroll jobs over the previous year, while its June unemployment rate reached 3.3%, a slight uptick from the previous year’s 3%. Job growth was strongest in the private education and health sectors, adding 700 jobs. However, the mining sector shed 400 positions, reflecting ongoing energy sector struggles.
While the state’s rig counts offer some positive signs, low natural gas prices, reduced oil prices, and a marked decline in coal production present challenges. Rig counts in September 2024 showed 13 oil rigs and five gas rigs, a slight drop compared to the previous year’s figures. Prices for natural gas averaged $2.28 per MMBtu in September, marking a decline of 37 cents year-over-year, while West Texas Intermediate crude oil was down to $70.24 per barrel, nearly $20 lower than in 2023.
The decline in coal production has been particularly steep, with a 23% drop in output during the first seven months of 2024 compared to the same period in 2023. Despite the uptick in rig counts, jobs in oil and gas fell by 100 from the previous year, totaling 9,300 in August.
Wyoming’s revenue data offers a mixed picture, with slight declines in sales, use, and severance tax collections. Sales and use tax revenue for the first quarter of fiscal year 2025 saw a minor decrease, down by $800,000 or 0.3% from the same period in 2023. Severance tax collections also saw a reduction, with mining sector tax revenues falling by $6.9 million, a 22.5% decrease from last year. Albany County showed the most significant growth in sales and use tax collections, rising 42.4%, while Platte County experienced a 24.5% decline.
Housing prices in Wyoming increased by 6.4% in the second quarter of 2024, outpacing the national average of 5.9%. Natrona County recorded a notable 10.4% increase in home prices, while Laramie County saw a 6.5% rise. New single-family homes grew by 27.7%, adding 253 units, and multi-family units surged by 104.8%, adding 131 new units through August.
Wyoming’s gross domestic product (GDP) rose by an annualized rate of 3.5% from the first to the second quarter, slightly outpacing the national GDP growth rate of 3%. However, the state’s GDP growth was just below the Rocky Mountain Region’s rate of 3.7%. While moderate GDP growth indicates economic resilience, ongoing shifts in energy prices and output may continue to shape Wyoming’s economic trajectory.
