RESOURCES

A Summary of the Economic Report

by ECONorthwest
Download the Klamath-Siskiyou Economic Report (389 kb)

Introduction
In recent years there has been debate about how best to manage the Klamath-Siskiyou region's natural resources. Much of the debate has been spurred by efforts to protect the natural environment against the impact of the timber, mining, and agricultural industries. As a result, the debate is often perceived as a fight between the economy and the environment. Historically, the region's natural richness has provided the resources for a series of commodity-based economic booms. Otters on the coast and beavers inland were the base of fur trade in the 1800's, the gold rush brought a wave of prospectors and wealth, as did timber in the middle of this century. In the current, more diverse economy, natural resources are valuable for the quality of life they provide and their attractiveness to new business, residents, workers and investors. In short, the main issues in the management of the region's natural resources stem from job preferences: whether the region is supported by jobs that export the natural resources or by jobs created with companies that are attracted to the area for its natural beauty and quality of life. It's jobs versus jobs - not a choice between the economy and environment. This report examines economic trends and forces at play in the region, describes their implications for the current economy, and recommends strategies for improving the region's economy.

Employment
Employment is growing in the KS region, increasing 16.5% from 1989 to 1996. The service sector grew by 250%, while retail trade increased by 153%. The service sector is comprised of a broad range of jobs such as health care, education, accounting, advertising and repair and business services, many of which provide high paying, full-time jobs. Self-employment also grew dramatically, increasing 174% and creating 32% of all new jobs. From 1969 to 1996, income from the lumber and wood products industry fell from 20% of the KS region's total income to less than 7%.

Population
From 1990 to 1997 the population of the KS region grew by 10% or 74,000 new residents. More than half of these people have settled in Jackson and Shasta counties, areas known for their scenery, recreational activities and easy access to metropolitan areas via I-5. The KS region is expected to gain 300,000 new residents from 1995 to 2020.

Conclusions

  • The report suggests that the future economic well being of the KS region will depend on a skilled work force, responsible business partners and the health of the region's natural resources. These will generate the greatest economic benefit in terms of jobs and income.
     
  • In the increasingly high-tech and global economy, prosperity depends on skilled workers. Residents can help address educational issues by taking advantage of government education programs and training for the job conditions of the future.
     
  • Service industries now make up most of the region's economy and show the greatest potential to create new jobs in the future.
     
  • Within the foreseeable future, a natural forest or river will become more valuable to the region's economy than a logged forest or damaged river. A healthy environment provides improved quality of life, clean water, fresh air, diverse species and recreational activities. Residents can profit from the shift in consumer's preferences for these resources by increasing public knowledge and investing in the value of the natural resources.

     
 
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