Klickitat County profile

Washington state map with Klickitat county highlighted by Scott Bailey, regional labor economist - updated March, 2021

Overview

Regional context

Klickitat County is located in south central Washington. For roughly 10,000 years it was home to the Klickitat and Wishram tribes, hunter-gatherers who subsisted on elk, salmon, and local roots such as camas and celery. White settlers started pouring into the region in the 1850s. The Klickitat developed a complex relationship with the newcomers, but ultimately the Klickitat were forcibly displaced by the territorial governor and the U.S. Army, mostly to the Yakama Reservation, which today comprises the northern edge of Klickitat County. Much of the tribal economic base was destroyed when The Dalles dam was constructed in 1957, raising the water level and destroying Celilo Falls, the major fishing and trading center for tribes throughout the region. In 2018, the county was home to an estimated 480 indigenous people, who still celebrate traditions such as the appearance of roots in the spring and the annual return of salmon up the Columbia River. There are longhouses in Rock Creek and Roosevelt.

The economy of the county shifted to farming and timber: sheep and cattle raising, wheat, logging and lumber, then later expanding into orchards, vegetables, aluminum, and now drones and wine. Klickitat County has three distinct economic regions. The western third of the county relies on unmanned aerial vehicle (UAV, a.k.a. drones) production, wood products, and orchards and fruit packing. The eastern third is dominated by vegetable farming, as well as the Roosevelt regional landfill. The central third boasts the county seat, Goldendale, the Maryhill Museum, windsurfing and kite boarding beaches, as well as the now-shuttered aluminum smelter. Vineyards and wineries have been expanding across the county.

Recent trends in the local economy

Nonfarm employment in Klickitat County grew rapidly in the mid-1990s, peaked in 2000, and dropped sharply over the next four years before starting a recovery in 2005 that continued into mid-2009. The Great Recession was short and sharp in Klickitat: employment declined for twelve months (August 2009 to August 2010), falling by 450 jobs (8 percent). Recovery finally began in mid-2015, and job growth was extremely strong through the end of 2017, reaching 4.8 percent in 2016 and 4.6 percent in 2017. Employment growth slowed in 2018 and then plunged in early 2019 due to cutbacks in the drone industry. In 2019, the county averaged 6,340 nonfarm jobs, 160 fewer (-2.5 percent) than in 2018. The county lost 620 jobs in April 2020 after the COVID recession began, recovering a quarter of those by November.

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Geographic facts

	Klickitat County	Rank in state
Land area, 2010 (square miles)	1,871.31	24
People per square mile, 2010	10.9	35

Source: U.S. Census Bureau QuickFacts

Outlook

Job growth in Klickitat County has been highly dependent on manufacturing and specifically the UAV industry—and it’s important to note that there are other important sectors apart from manufacturing. From 2015 to 2018 manufacturing accounted for 670 out of 920 net new jobs in the county. At the end of 2020, factory payrolls were 440 jobs lower than their peak employment in September 2018. Nonmanufacturing employment was growing until COVID kicked in, leading to layoffs in leisure & hospitality and K-12 education. UAVs will continue to play an important role in Klickitat (and in the Columbia Gorge as a whole) going forward, along with agriculture, wood products, and tourism/recreation. Post-COVID, the county will likely continue to diversify at a modest pace. Important challenges for the future include securing funding for modernizing the interstate bridge across the Columbia River, and expanding broadband access.

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Labor force and unemployment

Current labor force and unemployment statistics are available on the Labor area summaries page.

Over the past 25 years, unemployment in Klickitat County has slowly trended lower, as the county economy has become less dependent on resource-based jobs that tend to have large seasonal and cyclical patterns. The gap between the county and the state unemployment rate, which was typically 4 to 6 percentage points in the 1990s, has also closed, and was only a point (state) to a point and a half (national) in 2018. The rate for 2018 and 2019 was only 5.8 percent, the lowest since the current methodology was adopted in 1990. Unemployment rose to 11.9 percent when the recession began but was close to normal by the end of the year.

Census data suggest that labor force participation rates in Klickitat County have been particularly low, compared with the state and nation. Much of the gap had to do with Klickitat’s older population. However, the labor force participation rate for the prime working-age population (25 to 54) was still substantially lower, as shown in the following table. The low participation rate means the county has relatively fewer wage earners, which affects other economic variables such as household income and personal income.

Source: Employment Security Department

Labor force participation rate for residents aged 25 to 54 years — the prime age working population — for 2015 to 2019

Group	Klickitat	State	U.S.
Total	68.1%	78.9%	78.4%
Male	72.5%	84.9%	83.3%
Female	63.4%	72.7%	73.4%

Source: Census Bureau, American Community Survey

In the 2012-16 period, three-fourths of the county’s jobs were held by county residents. Most of the incoming commuters came from adjacent counties: Skamania, Hood River, Yakima and Wasco. Thirty percent of the county’s employed workers commuted to jobs outside the county, with Hood River (13 percent) and Wasco (10 percent) being the prime destinations.

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Industry employment

Current industry employment statistics are available on the Labor area summaries page.

Major trends and events over the last 20 years include:

The expansion of agriculture throughout the county, but especially in vegetable farming and vineyards in east Klickitat and fruit orchards in the western portion.
The closure of the aluminum smelter in Goldendale in 2001.
The development of the regional landfill at Roosevelt in 1992 and its subsequent expansion.
The establishment and expansion of Insitu, a designer and fabricator of unmanned drones, in Bingen, along with a number of its suppliers.
Layoffs at Insitu and its suppliers in 2019.

As 2020 came to a close, preliminary estimates showed that:

Through November, the county averaged 5,910 nonfarm jobs, down 420 jobs or -6.7 percent over the year, roughly in line with national trends.
Private sector employment declined by 280 jobs, -6 percent.
Construction and mining employment lost 10 jobs over the year, and logging also lost 10 jobs.
Manufacturing fell by 100 jobs, a loss of 6 percent.
Trade, transportation and utilities declined by 40 jobs.
Professional & business services was unchanged.
Education & health services was up by 10 jobs.
Leisure and hospitality dropped by 110 jobs, -31 percent.
Government shed 140 jobs, including 150 in K-12 education.

For historical industry employment data, contact an economist.

Source: Employment Security Department

Agriculture

According to the 2017 Census of Agriculture, there were 750 farms in the county, with a total of more than half a million acres and $99 million in sales. The fruits, tree nuts and berries category accounted for $64 million in sales—the county has extensive production of cherries and wine grapes. There were almost $10 million in sales of cattle and calves, and $8 million in grains, oilseeds, dry beans and dry peas—mostly in wheat.

Industry employment by age and gender

The Local Employment Dynamics (LED) database is a joint project of state employment departments and the Census Bureau. It matches state employment data with federal administrative data. Among the products is industry employment by age and sex. All workers covered by state unemployment insurance data are included. Federal workers and non-covered workers like the self-employed are not. Data is presented by place of work, not place of residence.

Klickitat County highlights:

Males held a majority (57 percent) of the jobs in Klickitat County in 2019. The state was much closer to a 51/49 split.
Female-dominated industries included healthcare (71 percent), education (68 percent), accommodation and food services (64 percent), and retail trade (54 percent).
Male dominated industries include construction (82 percent), administration and waste services (77 percent), manufacturing (73 percent) and agriculture & forestry (59 percent).
The average wage for jobs held by females paid only 60 percent of the average for jobs held by males.

Source: The Local Employment Dynamics

Industry employment by race and ethnicity

The table below shows estimated employment by industry by the race or ethnicity of the worker holding the job. Some takeaways: a majority (58 percent) of jobs held by Latinx were in agriculture, and another 18 percent were in manufacturing. Jobs held by African Americans were primarily in agriculture or manufacturing (both 38 percent). Similarly 41 percent of jobs held by Asian Americans were in agriculture, with 29 percent in manufacturing; and for Indigenous People, 20 percent were in agriculture, 21 percent in manufacturing.

Klickitat jobs by industry by race/ethnicity of employee, 2019*

	Total*	White Non-Latinx	African American	Native American	Asian American	Pacific Islander	Two or more races	Latinx
Industry	7,357	5,503	122	60	183	23	133	1,344
11 Agriculture, Forestry, Fishing and Hunting	1,526	640	40	7	69	6	12	751
21 Mining	-	-	0	0	0	0	0	0
22 Utilities	119	105	0	3	0	0	0	8
23 Construction	257	227	2	1	0	0	5	10
31-33 Manufacturing	1,855	1,480	42	12	45	4	36	236
42 Wholesale Trade	138	114	0	0	4	0	6	12
44-45 Retail Trade	384	302	2	3	11	4	11	50
48-49 Transportation and Warehousing	109	79	0	0	0	0	0	24
51 Information	44	39	0	0	0	0	0	2
52 Finance and Insurance	58	50	0	0	0	0	0	5
53 Real Estate and Rental and Leasing	36	31	0	0	0	0	0	4
54 Professional, Scientific, and Technical Services	131	119	0	0	0	0	2	8
55 Management of Companies and Enterprises	-	-	0	0	0	0	0	0
56 Admin., Support, Waste Mgmt., & Remediation	303	257	8	3	6	0	8	20
61 Educational Services	667	603	4	10	0	0	9	38
62 Health Care and Social Assistance	566	472	7	3	14	0	10	59
71 Arts, Entertainment, and Recreation	90	81	0	0	1	0	2	4
72 Accommodation and Food Services	292	226	2	1	12	0	12	37
81 Other Services (ex. Public Administration)	356	295	6	1	7	0	8	36
92 Public Administration	403	364	0	7	6	0	6	19

*Includes all non-federal jobs covered by unemployment insurance, less suppressed industries.

Source: The Local Employment Dynamics Database

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Wages and income

The charts below contrast industry shares of employment and wages covered by unemployment insurance in the county. The biggest difference: manufacturing supplied 22 percent of the jobs in the county, and 35 percent of total wages. The average wage for all jobs in the county was $52,071, for manufacturing: $82,075. The county’s average wage had been trending up over time, in line with the average for the rest of the state if King County is excluded, until 2019, when job losses in manufacturing led to a 2.9 percent drop in the average wage for all industries.

Covered employment in 2019

Covered wages in 2019

Pie chart of covered wages in 2019

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The median hourly wage for non-federal jobs in Klickitat County was $22.49 in 2018. In comparison, the state median was $25.98 ($22.37 if King County was excluded). The 2018 median was 3.9 percent above the 2017 figure, the third consecutive year with a large increase.

In 2018, 5 percent of the jobs in Klickitat paid below $12 per hour vs. 4 percent statewide and 6 percent for the state when King County is excluded. On the upper end, a third of the jobs in the county paid $30.00 per hour or more, slightly less than the 33 percent for non-King counties, and further below the 42 percent at the state level.

FTE jobs by hourly wage range, 2018

Since 2010, there has been a marked shift to higher-income jobs. Partly, that has been due to the increase in the minimum wage, which has pushed some lower-wage jobs above the $12.00 per hour threshold. There has also been a net gain in the number of jobs in higher wages as well.

Change in FTE jobs by hourly wage range, 2010 to 2018

Finally, the table below shows the average monthly wage for jobs in Klickitat County by the race or ethnicity of the jobholder. The relatively high wages for jobs held by African-Americans stemmed from their concentration in the transportation manufacturing industry.

2019 Average Monthly Earnings by Race/Ethnicity of Jobholder*

	Number of jobs	Average monthly wage	Percent of total
All Workers	6,302	$4,837	100%
White Non-Latinx	4,829	$5,005	103%
African American	95	$6,189	128%
Indigenous	50	$4,061	84%
Asian American	147	$4,730	98%
Pacific Islander	18	$3,421	71%
Two or more races	116	$5,006	104%
Latinx	1,047	$3,980	82%

*Includes all non-federal “full-quarter” jobs covered by unemployment insurance. “Full-quarter” jobs are jobs held by the employee at an employer in the current quarter that existed in the previous quarter and persisted into the next quarter.

Source: Employment Security Department; Bureau of Labor Statistics; Bureau of Economic Analysis; U.S. Census Bureau; U.S. Census Bureau, American Community Survey

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Personal income

Personal income includes earned income, investment income and government payments such as Social Security and Veterans Benefits. Investment income includes income imputed from pension funds and from owning a home. Per capita personal income equals total personal income divided by the resident population.

Per capita income declined slightly to $49,458 in 2019. Over the past dozen years, Klickitat has moved from 78 percent of the national average to 88 percent, and from 72 percent of the state average to 76 percent. Earned income, investment income, and transfer payments have all grown faster at the county level than for the state and nation.

Beginning in 1990, an increasing share of income earned by Klickitat residents came from jobs held outside the county. The percent of earned income coming from cross-county commuters increased from 15 percent in 1990 to 29 percent in 2009 before declining and stabilizing at 21 to 22 percent over the past seven years. Meanwhile the percent of earnings from jobs within the county that was earned by non-county residents has risen sharply from 14 percent in 2006 to 22 percent in 2019.

Transfer payments are an important source of income for county residents. On a per capita basis, payments are 36 percent higher in Klickitat than nationally, due to factors like a more elderly population, poverty, and a higher population of veterans.

Per capita transfer payments, 2019

Transfer Payments	U.S.	State	Klickitat
Total benefits	$9,521	$8,962	$13,055
Social Security benefits	$3,140	$3,102	$4,642
Medicare benefits	$2,338	$1,929	$2,988
Public assistance medical care benefits	$1,909	$1,768	$2,974
Income maintenance benefits	$819	$630	$857
Supplemental Security Income (SSI) benefits	$176	$138	$215
Supplemental Nutrition Assistance Program (SNAP)	$167	$159	$212
Unemployment insurance compensation	$86	$145	$121
Veterans benefits	$399	$478	$656
All other benefits	$439	$613	$390

Household income

Recent estimates of household income from the Census Bureau showed that median household income in Klickitat County has increased considerably of late. The median for the five years spanning 2015 to 2019 was $55,773, an increase of 13 percent from the 2010-14 period. That was a smaller increase than the state (14 percent) but larger than the nation (10 percent).

Poverty in Klickitat County was estimated at 15.6 percent for the 2015 through 2019 time span, identical to the previous five years. The county’s rate was more than two points higher than the national average (13.4 percent) and almost five points above the state (10.8 percent).

It seems reasonable to conclude that the lower median income in the county is connected with the higher level of lower-wage jobs. A challenge for the county is to facilitate the development of more middle income jobs to help lower poverty — no easy task these days.

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Population

Klickitat County’s population was 22,770 in 2020. Of note:

Over the past decade, the county has grown at an average of 1.1 percent per year, faster than the average for rural counties in the state (0.6 percent) and for the nation (0.7 percent) but slower than for the state overall (1.3 percent).
Net in-migration has accelerated over the past few year, from only 17 net new residents in 2009-10 to an average of almost 400 a year for 2016-20. Most of the newcomers come from nearby counties and Puget Sound, while Wasco and Deschutes counties in Oregon were the top destinations for those who moved out of the county.

Source: Washington Office of Financial Management

Population facts

	Klickitat County	Washington state
Population 2018	22,770	7,656,200
Population 2000	19,161	5,894,121
Percent change, 2000 to 2018	19.8%	29.9%

Source: Washington Office of Financial Management

Age, gender and ethnicity

Klickitat’s population is somewhat older than the state and nation. In 2019:

22 percent of the county was below the age of 20, versus 25 percent statewide.
18 percent was aged 20 to 39, versus 27 percent statewide.
25 percent was aged 40 to 59, slightly above the state figure of 25 percent.
35 percent was aged 60 or older, far more than the state average of 23 percent.

The county is also less diverse: in 2019, 82 percent of the population was white and non-Hispanic, compared to 68 percent statewide and 60 percent nationally.

Source: Office of Financial Management

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Demographics

	Klickitat County	Washington state
Population by age, 2019
Under 5 years old	5.0%	6.0%
Under 18 years old	19.5%	22.3%
65 years and older	26.4%	16.3%
Females, 2019	49.5%	49.5%
Race/ethnicity, 2019
White alone, not Hispanic or Latino	81.7%	67.7%
African American	0.4%	3.9%
American Indian, Alaskan Native	1.6%	1.2%
Asian, Native Hawaiian, other Pacific Islander	0.7%	9.7%
Hispanic or Latino, any race	12.7%	13.2%

Source: Office of Financial Management

Educational attainment

For the 2015 to 2019 period, an average of 28.9 percent of the Klickitat population aged 25 and older had a bachelor’s degree or higher education, up from 19.5 percent in 2010 to 2014. The 9+ percent increase was much greater than for the state or nation, though the level still lagged the 36.0 percent statewide and 32.1 percent nationally.

Source: U.S. Census Bureau

Useful links

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Important Updates and Alerts (4)

Klickitat County profile