POST FALLS — The state's lowest unemployment rate on record dating back to January 1976 is also reflected with a healthy but challenging Kootenai County market.

Idaho's jobless rate fell a tenth of a percent to 2.8 percent in September from August, according to an Idaho Department of Labor report released Friday.

Kootenai County's number inched up a tenth of a percent to 3.5 percent, while the nation's rate dropped two-tenths to 4.2.

"The low unemployment rate is an indicator of a good economy, but it poses a challenge to employers to find qualified applicants," said Vicki Isakson, Labor's regional manager. "We are seeing that most industries are having trouble filling positions."

At a local fall job fair this month, 55 employers were trying to fill 1,500 job openings.

"We had approximately 450 job seekers show up for those 1,500 jobs, which equates to one job seeker for every three open positions," said Craig Hampton, Labor's employment services supervisor. "Most of these jobs offered full benefits."

Jamé Davis, Post Falls Chamber CEO, said the situation is making employers raise the bar.

"There has certainly been a buzz about employers reviewing their compensation packages, benefits and perks as a means to attract and retain their employees," Davis said. "In many industries, companies are competing with each other for the talent. Everyone is sharpening their pencils for sure."

The construction industry, she said, is really competitive.

"The other piece to this (labor shortage) is that it is delaying projects," she said.

Hampton said call centers, health care, manufacturers, school districts and restaurants also face uphill battles with finding employees.

"Kootenai Health has more than 200 open positions to fill in almost every category from barista to doctor," he said. "School districts in the area are still hiring for bus drivers, support staff and teachers."

Hampton said the US Bank call center recently increased its starting wage to $15 per hour.

Jessica Bauman, owner of Express Employment Professionals, said other factors can make it difficult to find workers.

"We have a growing population of good employees who have made some poor choices in the past but are looking for a second chance, yet stringent background check policies may be a barrier," Bauman said. "Other factors we have found include transportation issues, lack of affordable child care and longer gaps in employment deters people from applying."

Kootenai County's low rate suggests its economy is thriving and that most sectors are continuing to grow, said Kathryn Tacke, a regional Labor economist. She expects more of the same this winter.

"Unless the U.S. economy enters a downturn, which most economists don’t believe is likely in the next few months, unemployment rates should remain in their current range," she said. "Of course, winter always is a period of lower employment than summer and early fall, so if we don’t adjust for seasons, employment will fall and unemployment will rise over the next few months."

The drop in the state's rate in September was due to a robust increase in the number of Idahoans working and a continued drop in the number of unemployed, the report states.

Total employment grew by 4,154 in September — the largest monthly increase since July 1993 — driving the total number of people with jobs to 800,629.