GILLETTE, Wyo. — Wyoming’s economy is experiencing moderate growth, with positive trends in employment but challenges in the energy sector.
That’s according to the Wyoming Department of Administration and Information’s latest MACRO report, which says rig counts remain a bright spot for Wyoming energy. However, low natural gas prices, lower oil prices and declining coal production are chilling the sector.
State employment steady, local rate up
Statewide employment has seen consistent annual growth, with an increase of 1,700 jobs, or 0.6%, in August compared to the previous year. The labor market continues to show healthy signs, with the statewide unemployment rate holding steady at 3% in August. That marks the 17th consecutive month of unemployment at or below 3%, the report said.
A deeper look at the jobs picture shows the private education and health sectors added the most jobs for the quarter, up 700, or 2.4%. The mining sector shed 400 jobs, or 2.3%.
Wyoming Nonfarm Employment Change By Industry, August 2024
Energy Sector Concerns
Despite positive news in employment, the energy sector is facing headwinds.
While oil and gas rig counts are up, low natural gas prices, declining oil prices and a significant drop in coal production are causing concern. Coal production in the first seven months of 2024 is down 23% compared to the same period last year, the MACRO report states.
Oil and gas rig counts were 13 and five, respectively, in September 2024. In September 2023, there were 18 oil rigs and four gas rigs, according to the report.
Natural gas prices averaged $2.28/MMBtu, down 37 cents from September last year. West Texas Intermediate oil averaged $70.24 per barrel, down $19.19 from September 2023.
The report states natural gas production was up 7.7% year over year in July 2024 while oil production increased 14.5%. However, coal production saw a 23% drop.
Oil and gas jobs were at 9,300 in August, down 100 from August 2023.
Mixed Signals in Revenue
State revenue data also present a mixed picture.
Sales and use tax collections for the first three months of fiscal year 2025 are slightly down compared to the previous year, while severance tax collections have also seen a minor decline.
The state reports an $800,000 shortfall in sales and use tax compared to July–September 2023. That’s down 0.3%.
Wyoming 4% Sales and Use Tax Collections By Industry
At the same time, sales and use tax collections from the mining sector are down $6.9 million, or 22.5%, compared to last year.
The largest increase in sales and use tax collections was seen in Albany County. Its collections are up 42.4% compared to last year. Platte County fell the most, down 24.5%, according to the report.
Housing Prices
Wyoming’s second-quarter house prices are up 6.4%. That’s higher than the national rate of 5.9%.
The number of single-family homes in the state increased by 253, or 27.7%, through the end of August. Meanwhile, the number of multi-family units increased 104.8%, or by 131 units.
Wyoming GDP
Wyoming’s gross domestic product rose by 3.5% at an annualized rate from Q1 to Q2 this year. That was more than the U.S. rate, which was 3%, but was slightly lower than the Rocky Mountain Region rate of 3.7%.