| Economic Overview Links to 61 San Juan County data sheets
For more information onSan Juan County, please see Regional Economists and the Areas They Serve.
Please note: some of the data used is in this narrative is from the updated historical information available at www.workforceexplorer.com. Click on “Quick Links,” and “Alphabetical list of site contents,” go to “Nonagricultural Employment (Nonfarm) - historical Excel.” This information is benchmarked quarterly and subject to change.
San Juan County is unique in several ways. One of the most unique features is the local economy. Every year, the nonfarm employment data reveal the seasonal nature of the island economy. Between 2000 and 2008, the average annual job growth rate between January and August has been 34.3 percent. The yearly increase in employment occurs as firms in the accommodation and food services industry prepare for the summer tourist season. While the seasonal nature of the San Juan economy insulates the county to a certain degree, the county is not immune to the effects of a recession. The 2008 recession caused job losses nationwide, including San Juan County. As a result, preliminary data indicate that year-over-year job growth in San Juan County turned negative in November 2008, and has continued to be negative through the first quarter of 2009. Further effects of the recession will be discussed below.
Overall, job growth in San Juan County has been strong when compared to the state and nation as a whole. Between 2000 and 2008, average annual job growth was 1.9 percent, comparing well to the state and national figures of 1.1 percent and 0.5 percent, respectively. Consistent with the overall job growth experienced by the county was the large employment growth in the natural resource, mining, and construction grouping. It should be noted construction is currently 99.3 percent of this subsector, with natural resources and mining making up the other 0.7 percent.
Job growth leads to population growth and, as a result, the demand for housing rises. Between 1996 and 2008, the employment growth rate in construction was 5.5 percent per year (statewide, employment in the construction sector increased at an average annual rate of 3.5 percent).
The largest industry by employment in the county is government. According to preliminary data, in 2008, the government sector accounted for 18.0 percent of total nonfarm employment, and local government accounts for about 80.0 percent of total government jobs. The government sector was followed by the trade, transportation, and utilities grouping, and the natural resources, mining, and construction grouping at 16.7 and 15.9 percent, respectively.
The San Juan County economy has always been heavily weighted towards the services-providing sectors. In 2008, they accounted for over 80.0 percent of all nonfarm employment, which leaves the goods-producing sectors responsible for the other 20.0 percent of total nonfarm employment.
Outlook
The San Juan Island economy is highly dependent on the travel and tourism industries. According to the Economic Development Element (EDE) of the 2007 San Juan County Comprehensive Plan, tourism generates about 20.0 percent of all county employment and tax receipts.
In the EDE , the county has outlined an economic development strategy in an effort to enhance economic growth. Among the strategies outlined in the report are plans to support the small business community, increase tourism, and participate in initiatives to develop a marine Industry cluster. | 
