Since rusticators first began visiting Mount Desert Island in 1800’s, seasonal visitation has been the driving force behind our economy. The impact of this economic engine is enormous, but on the whole Mount Desert has a great diversity of economic activity.
As a community we have to understand our economy in order to make policy decisions that will affect our future. This chapter inventories the local labor force, commuting patterns, and the regional job market as well as discusses trends that will impact the economy in the future.
The Mount Desert Labor Force
Primarily because of the high number of retirees in Mount Desert, only two-thirds (1,394 residents) of the Town’s population participated in the labor force in 2003, according to the Maine Department of Labor’s estimates (Figure 1). This represents the total number of workers plus those looking for work. It is at its highest point in the past ten years (an increase of 20%) and matches the rate of job creation in other communities on Mount Desert Island.
Our unemployment rate peaked in the early 1990s at 9% and has been falling since then. By 2002, our unemployment rate had reached 4%.
These statistics show the labor force slowly expanding and the unemployment rate decreasing over a long period of time. Statistics compiled in the recently completed Housing Needs Assessment, 2004 suggest that more than 1,000 new year-round jobs have been created on the island since 1997.
Our town’s economy is largely based on seasonal visitation. The number of employed residents in our town varies from season to season as does the unemployment rate (Figure 2). In 2003, the size of our labor force peaked at 1,600 during the summer months and fell to 1,100 in the winter. Similarly, the unemployment rate fluctuates widely from a low of 1.5% in the summer 10.0% in February.
Compared with Mount Desert Island as a whole, the unemployment rate for our town is relatively low.
It is important to note that these statistics do not include those that are self-employed, which in Mount Desert is a very large component of the town’s workforce. The self-employed in Mount Desert likely include fishermen, construction workers, gardeners, artisans, and those working an assortment of other jobs on the island – especially during the summer season. In a survey sent to residents in 2003, 136 of respondents indicated themselves as self-employed, and census data indicates the actual number is higher, at 13% of the workforce in 2000. This is considerably higher than the state as a whole (9% of the labor force is self-employed).
While Mount Desert is essentially a rural community, a relatively small portion of the population is employed in natural resource-based business. However, fishing, while not at the center of the Town’s economic activity as it had been in the past for the region as a whole, appears to have been on the rise in Mount Desert over the past 15 years. While it plays a minor role in the economy, it is integral in that it is a segment that has sustained itself over time and has the ability to do so into the future.
Commuting Patterns
Mount Desert is essentially a bedroom community, and it’s labor force relies heavily upon neighboring towns for jobs and economic activity. There are a limited number of jobs in Mount Desert, just 668 in 2000. This is significantly less than in the surrounding communities, 3571 in Bar Harbor, and 1278 in Southwest Harbor. With 37 employees in 2005, the Town government itself is in fact the largest year-round employer in Mount Desert, with the small handful of businesses that have as many employees being primarily seasonal. Less than half (14) of these Town employees live in Mount Desert, and 15 commute off the island entirely.
As a result, residents in Mount Desert are very closely tied with the economies in the surrounding communities, both in terms of where they work and where they spend their money. In 2000, 80% of the town’s residents that were employed worked somewhere on the island. Nearly 400 worked in Mount Desert itself, and another 310 worked in Bar Harbor. Ellsworth accounted for another 11% of the labor force and Bangor accounted for 3%. The remaining employed residents worked in various communities from Augusta to Winter Harbor.
As people tend to shop where they work, it is likely that residents are spending much of their money in other towns, particularly on the west side of Mount Desert, where the closest amenities are located in neighboring towns.
There is a modest change in commuting patterns from 1990 when 86% of the employed residents of Mount Desert worked on the island. At that time, 441 residents worked in Mount Desert itself, and only 259 worked in Bar Harbor. Ellsworth accounted for only 7% of the town’s employed residents.
Local Employment Profile
Just as our residents commute to other communities for employment, so do residents of other communities commute to Mount Desert for work. Commuting patterns from 2000 suggest that 41% of the jobs in Mount Desert were filled by Mount Desert residents (Figure 3).
Another 28% of the jobs in town were filled by residents of Bar Harbor, Southwest Harbor, and Tremont. The remaining employees come from a wide variety of communities spread throughout Hancock, Penobscot,
and Washington Counties. Generally, these communities are located to the north and east of Ellsworth. Since the US Census is taken in April, this data likely understates our connection with these more far flung communities for a part of every year.
In the last decade, commuters to Mount Desert have changed significantly. Commuters were much more likely to commute from off-island to work in Mount Desert in 2000 than they were in 1990. In 1990, 84% of the employees working in Mount Desert commuted from the island. In 2000, that was down to 69%. This trend is likely to continue as increasing housing prices force more of the labor force off of the island.
The trend towards more commuters coming into Mount Desert from off-island will continue to strain the community’s transportation network, especially the bottlenecks getting off the island and up the Trenton peninsula.
Trends in Regional Employment
Detailed trends in regional employment are difficult to assess because of changes in the way the US Census and Department of Labor classify industries and occupations. However, general observations can be made.
According to the US Census, Hancock County’s total employment increased by nearly 20% between 1990 and 2000, similar to Mount Desert’s increase. This occurred largely in managerial/professional and service occupations. Sales and administrative support occupations increased modestly, while the more traditional blue collar occupations (laborers, operators, natural resource, and production) all declined.
Local Economic Development Organizations
The Mount Desert Chamber of Commerce’s goal is to improve the characters of the town’s small, unique communities. It is run by a Board of Directors and has more than 75 members.
The Chamber provides assistance with several community-related activities in Mount Desert and business development. In addition, the Chamber operates the Yachtman’s Building at the Northeast Harbor Marina. The Yachtman’s Building serves as a welcome and communication center for visitors. It also provides facilities and showers, and manages the tennis courts for visitors.
Issues and Implications
1. Economy is primarily seasonal, with little economic activity during the winter months.
2. Because of the low year-round population, most businesses cater to tourists; year-round
residents frequently have to go elsewhere to meet everyday needs.
3. Housing costs are significantly more than average residents are able to afford.
4. The economy is highly dependent upon island’s natural resources.
5. Mount Desert is highly dependent upon surrounding towns for economic activities.
6. There are a high number of self-employed workers in Mount Desert.
7. The high numbers of residents commuting to other towns on and off the island has led to increased traffic
and congestion on the roads, and could be an increasing problem, particularly at key intersections.
| 
