• Home
  • About Us
  • Subscribe
  • Advertise
  • Newsroom
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • Current Issue
    • Latest News
    • Special Report
    • Up Close
    • Opinion
  • News by Sector
    • Real Estate & Construction
    • Banking & Finance
    • Health Care
    • Education & Talent
    • North Idaho
    • Technology
    • Manufacturing
    • Retail
    • Government
  • Roundups & Features
    • Calendar
    • People
    • Business Licenses
    • Q&A Profiles
    • Cranes & Elevators
    • Retrospective
    • Insights
    • Restaurants & Retail
  • Supplements & Magazines
    • Book of Lists
    • Building the INW
    • Market Fact Book
    • Economic Forecast
    • Best Places to Work
    • Partner Publications
  • E-Edition
  • Journal Events
    • Elevating the Conversation
    • Workforce Summit
    • Icons
    • Women in Leadership
    • Rising Stars
    • Best Places to Work
    • People of Influence
    • Business of the Year Awards
  • Podcasts
  • Sponsored
  • INW Senior
Home » The Journal's View: Rural/urban economic gap should be addressed by state

The Journal's View: Rural/urban economic gap should be addressed by state

-

March 1, 2018
Staff Report

While the overall perception among urbanites might be that Washington state is enjoying a robust economy, the disparity between the economic health of urban and rural communities is widening. 

A recent jobs report published by the Association of Washington Business identifies concerns that contribute to urban/rural economic gap, but also highlights what we think are important ideas to help rural economies from falling further behind.

The report points out that rural communities lag behind urban centers in the areas of job growth, employment rate, and median wages, among other economic disparities.

The most expensive need identified in the report to help close that gap is billions of dollars worth of long-term road, bridge, and other infrastructure improvements statewide.

Meantime, we believe the report’s recommendations regarding tax fairness, regulatory reform, and rural broadband should be closer to within reach.

AWB counts Spokane County among eight urban counties in Washington state, while all other Eastern Washington counties are among the 31 considered rural.

Job growth in urban areas increased by 1.5 percent between 2012 and 2016, while the average job growth rate in rural counties was barely half that. Similarly, AWB says there’s a pronounced wage gap between rural and urban counties.

To help reduce the jobs and wage gap, the state should apply tax incentives fairly across the manufacturing sector statewide so that manufacturers in rural areas are on the same playing field as far as tax breaks that urban-based Boeing Co. and other aerospace manufacturers have enjoyed since 2003.

Gov. Jay Inslee vetoed a legislative attempt last year to do just that. He was wrong. The same job-retention rationale for granting aerospace tax breaks should be used for manufacturers statewide.

While nearly a quarter of the state’s jobs are based in rural areas, living-wage manufacturing jobs there are falling further behind health care, social assistance, retail trade, agriculture, and educational services job sectors.

The comparatively high tax burden Washington state businesses pay is compounded by a high degree of state regulation—disadvantages the AWB says are magnified in rural areas. One state-controlled area that we agree should be revisited is the workers compensation system. AWB claims that despite an attempt at reform in 2011, the Washington state workers compensation system remains one of the most expensive and administratively complex in the nation.

On this front, the state should do more to see that cost savings intended by the so-called reform are realized, or allow businesses to explore other options to the compulsory state system.

Another contributor to the gap between the urban and rural economies is the disparity in broadband access. AWB estimates that 200,000 to 400,000 rural residents across the state have no broadband access, including many residents in Lincoln, Adams, and Ferry counties, among several other rural Eastern Washington counties.

With the internet’s growing role in commerce, education, and everyday life, reaching all of the state with broadband is critical to leveling the field for access to a number of digital technologies that urban residents take for granted.

Improving tax fairness, the regulatory climate, and broadband access will help slow the urban/rural divide in the near term, as we grapple with major statewide infrastructure funding and improvements that will benefit commerce in the future.

    Latest News
    • Related Articles

      The Journal's View: Virtual school challenges must be addressed by all

      The Journal's View: School districts shouldn't be punished for state's missteps

      The Journal's View: Access to apprenticeships should be legislative focus

    Staff Report

    Spokane-area job numbers fall

    More from this author
    Daily News Updates

    Subscribe today to our free E-Newsletters!

    Subscribe

    Featured Poll

    How much are you spending on holiday shopping this year?

    Popular Articles

    • By Tina Sulzle

      Trader Joe's puts forward plans in Spokane Valley

    • Vintage (10) c
      By Tina Sulzle

      Aloha Vintage marketplace opens in Millwood

    • 1319f8394524761fe62efd46371b1cb6
      By Dylan Harris

      Silverwood to be acquired by Atlanta company

    • Topgolf web
      By Ethan Pack

      Topgolf project moves forward in Liberty Lake

    • Manufacturing fc collage web
      By Ethan Pack

      Manufacturers invest in INW

    • News Content
      • News
      • Special Report
      • Up Close
      • Roundups & Features
      • Opinion
    • More Content
      • E-Edition
      • E-Mail Newsletters
      • Newsroom
      • Special Publications
      • Partner Publications
    • Customer Service
      • Editorial Calendar
      • Our Readers
      • Advertising
      • Subscriptions
      • Media Kit
    • Other Links
      • About Us
      • Contact Us
      • Journal Events
      • Privacy Policy
      • Tri-Cities Publications

    Journal of Business BBB Business Review allianceLogo.jpg CVC_Logo-1_small.jpg

    All content copyright ©  2025 by the Journal of Business and Northwest Business Press Inc. All rights reserved.

    Design, CMS, Hosting & Web Development :: ePublishing