The Redmond spokesman., April 26, 2022, Page 10, Image 10

QUICK RECOVERY BOOSTS
REDMOND ECONOMY
But inflation and
housing prices
remain concerns
BY TIM TRAINOR
Redmond Spokesman
The economy shuddered and some busi-
nesses shuttered in 2020-2021, as the world
fought off the COVID-19 pandemic.
But here in Redmond, and in Deschutes
County as a whole, the fast dip toward reces-
sion was quickly halted. As the calendar turned
to 2022, all pandemic-related job losses in the
local economy had been recovered. In fact,
there are currently 16,049 jobs in Redmond ac-
cording to the latest data — nearly 1,000 more
than existed at the start of the COVID crack-
downs.
Still, we’re not out of the woods yet. Run-
away inflation, supply chain problems and lack
of affordable housing can all still stunt eco-
nomic growth in the Hub City, according to a
slew of local experts.
But first the good news.
Damon Runberg, Bend-based regional econ-
omist for the Oregon Employment Depart-
ment, said that Redmond has more workers
currently earning wages than it did pre-pan-
demic.
“That’s a full recovery and then some,” he
said.
There are currently as many open jobs as ap-
plicants, however, which causes a different kind
of economic stress. A strong demand for work-
ers requires employers to bump up wages and
benefits in order to attract good candidates and
keep their current employees.
Runberg’s data suggests the labor crunch
isn’t due to workers sitting on the sidelines, de-
spite ideas that a lack of child care or increased
government support for the unemployed has
kept people out of the labor market.
“None of our data suggest that,” he said. “It’s
pretty simple — demand for workers is high, so
a lot of workers are finding better jobs and bet-
4 | REDMOND PROFILES | APRIL 2022
Dean Guernsey/The Bulletin file
ABOVE: Homes under construction in
October 2021 on NW Quincy Avenue in Bend.
RIGHT: Damon Runberg, Central Oregon
regional economist, in his home office.
ter wages and employers who can’t (offer that)
are finding it hard to attract.”
The economic theory currently in play is
called the “wage-price spiral,” according to
Runberg. The theory posits that a tight labor
market causes wages and income to increase.
More disposable income in turn causes de-
mand for goods to rise. An increase in con-
sumer demand naturally leads to an increase
in prices. And when the cost of goods and ser-
vices increase, it leads to workers to require
still-higher wages in order to not lose ground.
Those ever-increasing wages lead to higher
production costs, which helps the spiral keep