On the job front, the Helena area appears to be weathering the national economic downturn. Unemployment in our area is higher than it was a year ago, but remains below the state and national averages.

The Department of Labor and Industry announced this week that the state's unemployment rate fell slightly in July to 4 percent. The same report showed an unemployment rate in Lewis and Clark County of 3.2 percent.

In recent years, the unemployment rate has been exceptionally low in Montana and even lower in Lewis and Clark County, and companies have struggled to find the workers they've needed. The tight labor market appears to be easing somewhat, though most indications are it's still an employees' market here.

"Unemployment is higher than it was in 2006 and 2007, but overall for both Lewis and Clark County and the state, the remarkable thing is how well our economy is performing given what's happening in other states around the country," said Barb Wagner, an economist in the Workforce Services division of L&I. "Montana's job growth was really strong in prior years, and I think we have a little momentum."

Statewide, Wagner said the increase in energy and food costs that have hampered the U.S. economy have been an overall positive for Montana's, which relies in large part on natural resources and agriculture.

And regionally, she noted that most of the state's growth is occurring in and around the urban centers, which helps explains the lower-than-average unemployment here.

Closer to home, an interesting trend has surfaced at the Helena Job Service Workforce Center, which posts job listings for both government and private-sector jobs and helps prospective workers with interview preparation and other tips on finding rewarding work.

"Our number of job orders (from employers) is staying fairly consistent, but the number of people walking through our doors has been significantly higher this entire year than it was in 2007," said Deb Buxbaum, manager of the Helena Job Service. "We're seeing lots of job-seekers in our office. Last year at this time our office was pretty quiet, and this summer we have not had that experience. It's been pretty busy."

Buxbaum said the Job Service had 355 positions listed this week. Employers continue to report difficulty in finding and keeping workers, particularly in service industry jobs like fast food restaurants, she said.

Power Townsend owner Mike Wall said a slowdown in the local residential construction sector has helped his company a little bit when it comes to hiring. People who might have previously looked for work with contractors are now filling out applications at the store, he said.

"We are finding a few better prospects than we had in the past, but it's still a challenge," he said. "We interview people every day."

At the State of Montana, the largest employer in town, two of the largest agencies report slight changes in the pools of applicants they're seeing.

At the Department of Transportation, spokeswoman Charity Watt Levis said the department is still getting quality applicants for open positions, but not as many as in the past. A job that might have attracted 10 or more suitable prospects in the past now draws two or three, she said.

She added that the department is having an easier time filling certain types of jobs than others.

"We're not having any problems at all in our more blue collar or clerical jobs," she said. "But we're seeing fewer people in specialized areas like accounting, IT (information technology) and specialized engineering."

At the largest state agency, the Department of Public Health and Human Services, the number of applicants per job opening is higher than it's been in recent years.

"Our hiring trends have remained relatively stable, but what I'm seeing is an increase in the amount of applications we're receiving," said Tina Berkshire, the recruitment manager for DPHHS.

Through July, the agency had posted 327 jobs in 2008 and received a total of 2,954 applications, or nine applicants per job. By comparison, through seven months last year the department had received 2,260 applications for 279 positions, or around eight per job.

At St. Peter's Hospital, spokeswoman Peggy Stebbins reported issues similar to those at the Department of Transportation.

"St. Peter's has found that there is currently a pool for support positions, however, finding experienced professionals and technical staff continues to be a problem," Stebbins said.

The hospital likes to fill vacancies within 38 days, and Stebbins said that benchmark is being met these days. But some positions, including registered nurses and some technical jobs, can take six months or more to fill.

"Retaining employees is becoming more difficult as staff is more willing and mobile to switch positions than they have been in the past," Stebbins said. "People are changing careers and loyalty to long-term employment is lessened."

Reporter John Harrington:

447-4080 or john.harrington@helenair.com.