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EDC Team Jefferson is the Associate Development Organization (ADO) for Jefferson County. If you are a business owner or site selector interested in relocating to Jefferson County, please contact us for assistance in assessing the benefits and options of doing business here.

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by Jim Vleming, regional labor economist - updated February 2020

Economic History

Jefferson County’s current economic base grew from a rich history of natural resources extraction including logging and fishing in the late 1880s. By the turn of the 20th century, sawmills, fish processing and shipbuilding were firmly established in the coastal areas of the county. The county also was known for smuggling spirits from Canada in and out of the county’s many hidden coves and forests during prohibition.

Port Townsend, the economic center of the county, has experienced periods of boom and bust over the century due to its dependency on these volatile industries. During 2011, Port Townsend finally started to recover from the Great Recession with visible signs of economic growth including new shops, new investments and rebounds in tourism. Annual taxable sales in the county have grown strongly since 2013. In 2018, the Port of Port Townsend had the highest revenue in five years for its major operating units.

The economy of Jefferson County is comprised of both an industrial and an agricultural base. Industrially, the county’s history, climate and terrain supports healthy forest products and maritime sectors, including lumber, fish processing, ship repair and maintenance as well as ship and boatbuilding. The agricultural base encompasses tree farms for logging, aquaculture and a flourishing organic farming sector. Food production, stemming from this growing agricultural segment, includes artisan cheeses and breads. Tourism also provides revenue streams to the county. Economic activity is supported by a vibrant port and airport, ferry terminal and state highways.

A recent development is the Emerald Coast Opportunity Zone (ECOZ), which consists of a diverse group of geographical census tracts intended to make the Olympic Coast more attractive to investors. Working together, ECOZ is catalyzing economic development in rural areas by engaging with communities and connecting the best opportunities with private capital.

This Opportunity Zone is a unique collaboration of five Tribal Nations, four cities, two counties (Clallam and Jefferson) and two port authorities that spans 14 federally designated Opportunity Zone census tracts. Together, the partners of the Emerald Coast Opportunity Zone are building a deal “engine” of community driven projects that both present good investments but also create good jobs, construct affordable and high-end housing, and support innovative entrepreneurs.

The 14 Opportunity Zone census tracts were designated under the federal 2017 Tax Cuts and Jobs Act. This federal law gives tax incentives to investors who invest their unrealized capital gains in qualified businesses and real estate located in Opportunity Zones through:
  • Temporary deferral of capital gains taxes until 2026.
  • Tax reduction on capital gains (at 5 and 7 years).
  • Elimination of taxes on gains from OZ investments (if held for 10 years).

Population

The population of Jefferson County was 31,729 in 2018. It grew from 29,872 in 2010. Jefferson County’s largest city, Port Townsend, had a population of 9,704 in 2018, up from 9,113 in 2010, an increase of 591 people.

From 2010 through 2018, the average age of the population in Jefferson County has continued to reflect a greater concentration of older residents compared to the rest of Washington state. In 2018, 36.9 percent of the population was 65 years of age or older. By the end of 2018 the population under 18 years old in the county made up only 11.8 percent of the population.

For additional statistics on Jefferson County demographics, please check out our demographics and employment statistics page, and these links:

Industry Detail

Jefferson County’s economic strength is largely due to its diverse businesses and community. The Jefferson County economy pivots around nine business clusters:
  • Arts & Culture
  • Education
  • Small Business and Entrepreneur
  • Food & Farm
  • Healthcare
  • Marine Trades
  • Real Estate and Construction
  • Tourism & Retail
The nine business clusters demonstrate the talent and innovation present in Jefferson County. Successful businesses thrive based on their product and service uniqueness. These businesses are right-sized for the community and have found solutions to any difficulties posed by our rural and somewhat remote location. Their competitive edge based on location, local resource, skill sets and/or local talent. Built on innovation and ability to find the right mix of talent and knowledge, these businesses together participate in a vibrant and varied business environment. In virtually all cases, business owners and their workers locate here because of the lifestyle offered by this superb location and its people.

The Maritime, Arts and Culture, Food and Farm, Tourism and Retail clusters support each other. Together, they deliver amazing value to our community and draw well over one million visitors to our County each year. Technology, Manufacturing, Real Estate and Construction provide a foundation of professional and trades jobs within the community. These clusters support and are supported by our education and healthcare systems.

Labor Force

The 2019 civilian labor force was 12,491, up from the 2018 level of 12,156.

This increase follows a reversal of years past where the labor force was shrinking. The labor force has been expanding since 2013. Displaying confidence in the local economy has supported increased labor force numbers.

The 2019 figures show an unemployment rate of 6.1 percent compared to 5.8 percent in 2018. The unemployment rate edged higher in 2019 and the expectation is this trend will continue into 2020.

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

In Jefferson County, the nonfarm sector averaged 8,970 jobs in 2019. That is 60 jobs more than in 2018, and 320 above the 2017 total.
  • The goods-producing sector was up 30 jobs year over year with construction remaining flat over the year. Manufacturing showed an increase of 30 jobs.
  • The service-providing sector gained 30 jobs overall in 2019. However, most sectors of the service providing category lost jobs in 2019.

Education

On average, the adult residents of Jefferson County over the age of 25 in most categories are better educated than their counterparts at the state and national levels. (Data from the 2000 U.S. Census) Jefferson County abounds with innovative life-long learning programs.
The Jefferson Education Center in Port Hadlock brings access to a variety of degree programs to Jefferson County. Associate degrees are offered through Peninsula College, as are Bachelor's to Doctoral programs through Old Dominion University and Washington State University. Accredited trade and technical schools include the Northwest School of Wooden Boatbuilding and the Port Townsend School of Massage.

The WSU Jefferson County Extension offers continuing education in business, food & farming, and environmental stewardship. 4-H programs provide the backbone for youth services and programs throughout the county.

A variety of educational programs for youth and adults are offered through the plethora of non-profit organizations. Other cultural experiences and nature experiences are available through the Northwest Maritime Center, Centrum, Port Townsend Marine Science Center, Port Townsend School of Woodworking, and many others.

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