Although those working in Guam’s hospitality industry may not agree, Guam’s economy is a prosperous one, said Roseann M. Jones, PhD, professor of economics and dean of the School of Business and Public Administration at the University of Guam.
Many of the industry-standard indicators support that notion, but especially construction and development related to the military buildup, though Jones doesn’t like that narrow description.
“I like to call it the rise of the defense sector, because it’s not just the military, it’s all of the contractors and the related businesses that come with it,” Jones told the Pacific Daily News in an interview.
Jones believes this broadening of a defense sector which “embraces cybersecurity and advances opportunities” for businesses and students to find “good-paying” jobs in the local economy — and many do — is helping Guam offset losses in tourism.
“So I think all in all, there’s going to be differences of individual realities, but I think we’re doing well,” Jones said.
It does not take long to realize that when Jones answers one’s questions, the only things missing are classmates.
And although it’s been some time since Jones was in the classroom regularly, she remains an educator for life.
This is why Jones can, in 51.5 minutes, deliver master classes on a variety of topics, including the state of Guam’s economy, workforce industry trends, how to understand economics through grocery store visits, the president and tariffs, and why, in life but especially in macroeconomics, the law of supply and demand will always rule.
Some key indicators for Guam’s prosperous economy are job growth, the prosperity of the island’s businesses, stability of Guam’s households, a fairly low unemployment rate, affordability of the economy for people to live and thrive and the migration paths of those who contribute to Guam.
Gig economy
There’s also another industry to consider, one that’s been around for a while but only recently has become a household name: the micro-business industry.
It includes the growing gig economy, which exploded from obscurity during the pandemic. It could be a cottage industry 2.0, upgraded to remove physical walls, with bug fixes throughout. The paid version includes updated customer lists at a tap or a swipe.
It also encompasses the side hustles, the ultra-niche industries, the commerce between those who want unconventional goods and services and those who provide them.
They find each other easily through vast networks and in just days’ time, an industrious person becomes an entrepreneur.
This contributes to Guam’s low unemployment rate (percentage of population looking for a job but can’t find one) of 3.6% for this two-week period, said Jones, and it does not include the significant number of people — about 50,000 — who are able to work, not working and not looking.
She said generally speaking, graduates from UOG’s SBPA find employment quickly, another excellent gauge of a thriving economy.
It’s an exciting time, she says, because while any community benefits by being home to a stable industry, a new generation has elbowed their way into commerce to declare that they too, belong.
She said a recent incident — the near-demise of TikTok on U.S. soil — caused such an uproar from the vast microbusiness industry that country leaders had to change their plans.
On a side note, she had to give a nod of respect and understanding to the current class of graduates.
While graduates normally do their capstone courses, and hold fancy-schmancy cocktail mixers to raise money and network with the business community, this cohort wanted carwash fundraisers. And a prom.
“A prom?!” thought Jones. “Carwashes? Here in the parking lot? That’s so...high school.”
It wasn’t the ideal money making picture she had of a class ready to earn the big bucks, but then she realized:
“This was the class that missed out on those events. They won’t get another chance to make those high school memories,” she said.
She said that she relented and allowed the cohort to do what they wanted.
Tariffs, high prices
The new president with his forceful orders and unpredictable directives, has created mass confusion with tariffs proposed earlier this week, Jones said.
He put most tariffs on pause on Wednesday, and he has created uncertainty, said Jones.
She’s resisted an urge to get swept up by the drama and observed from afar instead.
What she understands: The proposed tariffs imposed by President Donald Trump don’t affect the cost of goods sourced from Asia — for now, said Jones.
As an unincorporated territory, Congress has allowed Guam to set its own tariffs, as it has for the CNMI and the U.S. Virgin Islands but not Puerto Rico.
“I see it as a quiet opportunity,” she said.
It could be a time to invest in Asia imports and U.S. exports.
And while Guam may not see the price increases tomorrow or even this week, Jones can assure you that yes, when tariff hikes come into play, price hikes are a-comin’.
“We will see higher prices here in Guam, even from the others that can come here with less of a tariff issue. Unfortunately, we’ll see that there’s a price point that’s gotten elevated because of the dominance of U.S. products there,” she said. “Why undercut that? Let’s go with that price because we’ll get more of a profit.”
She said the costs for some goods may follow the trend of Guam’s gas prices, which go up or down, but are always duplicated across all gas stations, all the time.
As for what would be a good indicator that there is less uncertainty and the economy is stabilizing, she said to look no further than island leaders.
“If at the top we see our leaders calming down? That they got what they want, they have the deal. And now we’re on to something else, especially on this topic of trade and tariffs, and who’s a friend and who’s an enemy? I think when that all settles — and I’m not sure it will settle for a while — but I think that that would be the indicator,” she said.
“Or, on the other hand, maybe it won’t. Maybe we get so used to the drama and the uncertainty, that it doesn’t faze us. It’s just the world we live in.”
(6) comments
There is a lot of interesting content, but more from an academic view and style. All needs to be presented under a positive perspective, to safeguard own reputation and career. The every day life experiences and opinions of low or middle income residents should have been incorporated as well in this analysis.
this article opens with the statement: "although the working class would disagree..." and goes on to gaslight the public to think that this woman would know better than THE ACTUAL PEOPLE WORING IN THIS CLASS
Guam is by no means affordable for the lower or middle working class. The cost of food and housing alone take up most of peoples income. A lot of people here work more than one job and have generational or multi family housing situations. Most of what I read in this piece sounds delusional.
On Guam, when your last name is Jones everything looks merry and bright. She has been blessed, so good for Dr. Jones.
Milquetoast, PC material.
The ones that really can afford the prices of goods are the ones on government assistance (not the middle class unless there are 2 or more incomes in the family). The stores cater to those with food stamps, etc. And what about the homelessness? Wake up!
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