Wyoming’s economic outlook for 2025 is marked by both optimism and caution, with varied predictions across different sectors, Casper Star-Tribune reports.
While areas like manufacturing, construction, and tourism are expected to experience strong growth, challenges persist in industries reliant on natural resources, such as mining, agriculture, and finance.
Economist Anne Alexander, who led the second annual statewide economic outlook study by the University of Wyoming’s Center for Business and Economic Analysis, highlighted that most sectors are poised for a “strong to steady” outlook for the coming year. However, she emphasized that the state’s coal sector remains a significant concern, as it continues to face market-driven and regulatory declines. Mining, in general, has been in a downturn, with Wyoming’s natural resources and mining industry projected to account for just 7.6% of the state’s employment in 2025, down from over 12% in 2014. Despite this, some optimism exists in certain pockets, particularly in trona and rare earths, suggesting that opportunities remain in these areas.
Josh Dorrell, CEO of the Wyoming Business Council, noted that the decline in natural resource industries has far-reaching consequences for the state, not only affecting employment—by reducing energy jobs by 40%, or about 10,000 positions—but also impacting essential services funded by revenues from these industries. With much of Wyoming’s workforce employed in natural resources, any downturn can lead to higher unemployment rates and change the economic landscape of entire communities.
Additionally, Wyoming’s financial sector faces challenges tied to national economic conditions. While inflation rates have returned to healthier levels, emerging economic indicators may temper growth expectations for the country and the state in 2025. Meanwhile, agriculture is grappling with the aftermath of devastating rangeland fires that swept across northern Wyoming in 2024. Governor Mark Gordon has called for $140 million in firefighting and restoration efforts to address the damage.
The state’s housing market also remains a concern, with ongoing shortages predicted through 2025. The Wyoming Business Council has collaborated with The Growth Lab at Harvard Kennedy School to identify solutions, particularly as housing shortages hinder workforce expansion and business recruitment. The average wage needed to rent a two-bedroom apartment in Wyoming stands at $20.90 per hour, a significant challenge for many residents, especially those with median household incomes.
Another persistent issue for the state is the outmigration of college-educated youth. Approximately 37% of University of Wyoming alumni from 2007 to 2024 have left the state, contributing to Wyoming’s status as having the second-largest outmigration rate in the U.S., behind only West Virginia. The Wyoming Business Council continues to seek input from local youth to understand how the state can retain its young workforce and improve its job quality and community amenities.
Despite these challenges, the report highlights positive trends in technology, research, and venture capital. Wyoming ranks second in the nation for science and engineering degrees as a percentage of higher education degrees conferred, with a particularly strong showing in venture capital investment per gross state product. Additionally, Wyoming’s property tax rates remain among the lowest in the nation, further adding to the state’s economic strengths.
