CHEYENNE – Experts expect the state to enjoy steady economic growth this year, after a recent report suggested an uptick in employment, oil prices and personal income.

Wyoming’s unemployment rate dropped slightly in the first quarter of 2018 to 4 percent, slightly lower than the country’s unemployment rate of 4.1 percent at the end of March, according to the State of Wyoming’s Economic Analysis Division.

The most recent issue of the Wyoming Economic Summary Report, a quarterly publication, includes recent data on employment by industry, income, housing, taxable sales, tourism, agriculture and selected revenue.

The state experienced an increase of 1.6 percent in total employment compared to one year earlier, the largest year-over-year growth since the fourth quarter of 2014. Nearly all private industrial sectors experienced job increases as well.

“Clearly Wyoming’s economy is recovering after nearly two years of downturn, so we see unemployment rates similar to the U.S.,” said Wenlin Liu, chief economist for the state’s Economic Analysis Division.

Oil prices, in particular, have reached the highest level since the fourth quarter of 2014. The state’s mineral extraction industry increased their drilling activities, adding 2,030 jobs, or 10.9 percent, from last year.

With oil prices at $61.50 per barrel and natural gas prices also improving, the state’s challenges caused by the 2016 energy bust are beginning to reverse, which is vital in a state that relies on energy companies for roughly 70 percent of its tax revenue.

“It should be positive throughout the year, at least with the oil prices being pretty strong now,” said Liu.

Manufacturing, wholesale trade, machinery and equipment leasing, and other services sectors closely related to mineral extraction increased by roughly 20 percent.

Wyoming’s total personal income also grew 3 percent from the previous year. U.S. personal income increased 3.6 percent during the same period. Personal income is the sum of wages, property income and personal transfer receipts, such as Social Security income, Medicare and Medicaid benefits.

Liu said the state continues to see a decline in its labor force, though. Last year, Wyoming experienced its first population drop in 27 years, a 0.2 percent decrease.

“Older folks are leaving the labor force by retiring, and some young workers continue to leave the state to Colorado and Utah,” he said. “That continues to happen.”

Although the state may enjoy immediate economic benefits, Ed Dodson, an economic analyst who compiles data for a number of nationwide organizations, said Wyoming’s reliance on minerals puts it in a vulnerable position.

“What is most important to note about Wyoming’s economy, in particular, is that, although you can see a strong economic impact one year, the state’s limited industries mean one energy policy change can completely unravel the state’s economy,” he said. “So, while Wyoming seems to be seeing an end to a recession, focusing on attracting new industries is key.”