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Wyoming Labor Force Trends

August 2024 | Volume 61, No. 8


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Examining Differences between Wyoming’s Two Metropolitan Areas: Casper and Cheyenne

Article | Tables & Figures

 

by: David Bullard, Senior Economist

 

Wyoming has two Metropolitan Statistical Areas (MSAs), Casper and Cheyenne. While they are somewhat similar in size, there are significant differences in the economies of these two areas. This article reviews historical patterns of employment and unemployment and compares the sizes of different industries in each area in order to help readers understand key economic forces affecting Casper and Cheyenne.

As defined by the Office of Management and Budget, the Casper MSA consists of Natrona County and the Cheyenne MSA consists of Laramie County (OMB, 2023).

Figure 1 shows total nonfarm employment for Casper and Cheyenne from January 1990 to May 2024. The long-term trend has been positive over the past 34 years as employment has grown in both areas. Casper’s employment rose from 27,600 in January 1990 to a peak of 44,000 jobs in February 2015. Employment then fell to 37,700 jobs in November 2016. Later, both Casper and Cheyenne experienced large job losses related to the pandemic in 2020. Cheyenne’s employment fell from 48,400 in January 2020 to 44,000 in April 2020, while Casper’s fell from 39,800 in January 2020 to 35,300 in May 2020. Since the pandemic, both have recovered to pre-pandemic levels, but Casper’s employment remains well below its February 2015 peak. In contrast, Cheyenne’s total employment in May 2024 of 48,900 jobs represents an all-time high.

Unemployment rates for Casper and Cheyenne are shown in Figure 2. Generally, over the past 34 years, Casper has had higher unemployment than Cheyenne. However, there have been exceptions. From April 2003 to March 2009, Casper’s unemployment rate was lower than Cheyenne’s. During this time period, Wyoming’s energy sector was growing rapidly and many Casper-based employers were adding jobs at a brisk pace. Another important divergence in the two series can be seen from 2015 to 2018. There were large layoffs both in oil & gas and in coal mining in 2015 and 2016. This resulted in Casper’s unemployment rate rising much higher than Cheyenne’s. In June 2016, Casper’s unemployment rate was 7.3%, but Cheyenne’s was only 4.2%. The data in Figure 2 suggests that Cheyenne was barely affected by the 2015-2016 layoffs.

Figure 3, Figure 4, Figure 5, and Figure 6 compare employment sector by sector in the two MSAs. This is done in order to better understand which industries are most important to each MSA.

The mining sector (including oil & gas) is much larger in Casper than in Cheyenne (see Figure 3). In fact, Casper has more than three times as many mining jobs as Cheyenne. The construction sector is larger in Cheyenne, but the difference is relatively small. Manufacturing is larger in Casper than Cheyenne, with 600 more manufacturing jobs in Casper. A sizeable portion of manufacturing in the Casper area is related to oil & gas and other mining activity.

Figure 4 focuses on the sectors within trade, transportation, & utilities. Casper has twice as many jobs in wholesale trade as Cheyenne does (2,200 jobs compared to 1,100 jobs). Similar to the manufacturing sector, many of the employers in wholesale trade in Casper directly support the energy industry. Cheyenne has more jobs in retail trade than Casper, but the difference is not huge (5,200 jobs in Cheyenne, compared to 4,600 jobs in Casper). One might expect an MSA with a larger population (100,984 compared to 79,941) to support more retail jobs (Economic Analysis Division, 2024). Cheyenne also has more jobs in transportation, warehousing, & utilities (3,800 jobs compared to 2,100 jobs). Cheyenne is located at the intersection of I-25 and I-80 and has significant employment in warehousing & storage (1,702 jobs). Cheyenne is also a major hub for railroad traffic.

Employment in selected service-providing sectors is shown in Figure 5. Cheyenne has larger employment in five of the six sectors seen here, although some of the differences are small. One noteworthy difference is that Cheyenne has 4,400 jobs in professional & business services, while Casper only has 3,000. Professional & business services includes a wide range of employers from accounting offices and law firms to landscaping companies and temporary help services. Some of these businesses in Cheyenne might provide services to the city’s large government sector. The one sector shown in Figure 5 where Casper has more jobs is private sector education & health services (6,200 jobs in Casper compared to 4,700 jobs in Cheyenne).

Figure 6 illustrates government employment in the two MSAs. At every level Cheyenne has much higher government employment than Casper. Cheyenne has four times as many federal government jobs as Casper (2,800 jobs in Cheyenne compared to 700 jobs in Casper). The existence of F.E. Warren Air Force Base helps explain higher federal employment in Cheyenne. There are 3,700 state government jobs in Cheyenne, while only 700 in Casper. This is related to Cheyenne being the state capital and having many state government agencies headquartered there. Local government is also much larger in Cheyenne, with 7,400 jobs, compared to 4,500 in Casper. Local government includes school districts, public colleges, cities, towns, and counties, and in some cases hospitals.

In summary, Wyoming’s two largest cities have very different economies. Cheyenne’s economy is tilted heavily towards government, transportation & warehousing, and professional & business services, while Casper’s economy is dependent upon the energy sector and related services, such as wholesale trade and manufacturing. In 2015 to 2016, when the energy sector experienced layoffs, Casper’s total nonfarm employment fell and unemployment increased, but Cheyenne’s economy remained fairly stable.

References

Liu, W. (2024, March 14). Most Wyoming counties gained residents in 2023. Economic Analysis Division. Retrieved July 9, 2024, from http://eadiv.state.wy.us/pop/CO-23est.pdf

Young, S. (2023, July 21). OMB Bulletin 23-01. Office of Management and Budget. Retrieved July 9, 2024, from https://www.whitehouse.gov/wp-content/uploads/2023/07/OMB-Bulletin-23-01.pdf