Economy of Spokane, Washington

The economy of the Spokane Metropolitan Area plays a vital role as the hub for the commercial, manufacturing, and transportation center as well as the medical, shopping, and entertainment hub of the 80,000 square miles (210,000 km²) Inland Northwest region. Although the two have opted not to merge into a single Metropolitan Statistical Area (MSA) yet, the Coeur d'Alene MSA has been combined by the Census Bureau into the Spokane–Coeur d'Alene combined statistical area (CSA). The CSA comprises the Spokane metropolitan area and the Coeur d'Alene metropolitan area anchored by Coeur d'Alene, Idaho. According to the U.S. Bureau of Labor Statistics, the Spokane metropolitan area has a workforce of about 287,000 people (255,000 non-farm) and an unemployment rate of 5.3 percent as of February 2020; the largest sectors for non–farm employment are education and health services, trade, transportation, and utilities, and government.^[1][2] The Coeur d'Alene metropolitan area has a workforce of 80,000 people and an unemployment rate of 6.8% as of June 2020; the largest sectors for non-farm employment are trade, transportation, and utilities, government, and education and health services as well as leisure and hospitality.^[3] In 2017, the Spokane–Spokane Valley metropolitan area had a gross metropolitan product of $25.5 billion while the Coeur d'Alene metropolitan area was $5.93 billion.^[4]

Spokane's economy has traditionally been natural resource based—heavily dependent on extractive products produced from farms, forests, and mines—however, the city's economy has now diversified to encompass other industries, including the technology, healthcare, and biotech sectors. Major trade in the city started with the first permanent European settlement in the Spokane area and Washington state with the fur trade, with the westward expansion and establishment of the North West Company's Spokane House in 1810. The Spokane House was the center of the fur trade between the Rockies and the Cascades for 16 years. The Spokane area is considered to be one of the most productive mining districts in North America. In the late 19th century, gold and silver were discovered in the Inland Northwest, leading to intensive development of mines in the region. After the mining rushes ended at the turn of the 20th century, agriculture and logging became the primary influences in the Spokane economy. The expansion and growth of Spokane abruptly stopped in the 1910s and was followed by a period of population decline due to economic factors such as capital flight, low commodity prices, and loss of industry. A later stabilization of the economy came with diversification away from natural resources.