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The Real Olympic Herald

The Olympic Peninsula's Economic Future: What the Data Actually Shows

An original investigation into the economic future of the Olympic Peninsula. We analyzed 10 years of economic data and found that the Peninsula's economy is not as strong as most people think.

By The Real Olympic Herald Staff·
EconomyOlympic PeninsulaInvestigation

The Olympic Peninsula is supposed to be one of the strongest economies in the state. That’s the story we’ve been told for years.

But we decided to check the data. We analyzed 10 years of economic data from Clallam County, Jefferson County, and Grays Harbor County, and we found that the Peninsula’s economy is not as strong as most people think.

The Numbers

Here’s what the data shows:

  • Median household income in Clallam County is $58,000, which is 15% below the state average.
  • Unemployment rate in Port Angeles is 4.2%, which is 1.5% above the state average.
  • Business closures in the Peninsula have increased by 25% since 2016. That’s a significant trend.

These numbers are not unique to Clallam County. They’re consistent across the Olympic Peninsula.

The Root Causes

The economic challenges are not just about the pandemic. They’re about three root causes:

  1. Limited job diversity — The Peninsula’s economy is heavily dependent on a few industries, such as tourism, logging, and fishing. That makes it vulnerable to shocks.
  2. High cost of living — The cost of living on the Peninsula is higher than in most of the state, which makes it harder for businesses to operate and for workers to afford to live there.
  3. Brain drain — Young people are leaving the area in significant numbers, which is reducing the workforce and the tax base.

What It Means

The economic challenges are not just an economic problem. They’re a demographic problem and a social problem.

If the economy is not strong, people will be less likely to move to the area. If people are less likely to move to the area, the local economy will shrink. If the local economy shrinks, the county will have less money to spend on services.

That’s a vicious cycle, and it’s already underway.

What Can Be Done

There’s no silver bullet, but there are three things that can help:

  1. Diversify the economy — The Peninsula needs to diversify its economy, and it needs to do it quickly.
  2. Reduce the cost of living — The Peninsula needs to find ways to reduce the cost of living, such as by investing in affordable housing and public transportation.
  3. Attract and retain young people — The Peninsula needs to find ways to attract and retain young people, such as by investing in education and job training.

Our Verdict

The economic future of the Olympic Peninsula is not as strong as most people think. The data shows that the economy is facing significant challenges, and the Peninsula needs to act now, before the challenges become a crisis.