Payroll employment declines in Washington State, unemployment rate rises to 4.0%

Washington's economic landscape took a downturn in November, shedding an estimated 2,600 jobs according to seasonally adjusted figures. The state's unemployment rate surged from 3.8% to 4.0%, marking a departure from the consecutive months when the rate was below 4%. The Employment Security Department (ESD) highlighted this setback, emphasizing a reversal of October's job gains.

"October’s job gains were largely reversed in November. Payroll employment dropped and the unemployment rate reached 4.0% after five consecutive months below 4%,” said Employment Security Department (ESD) Chief Labor Economist Anneliese Vance-Sherman. "The demand for workers remains elevated. However, some softening of the labor market is evident.”

During November, ESD distributed unemployment insurance benefits to 61,826 individuals, marking an increase of 7,162 claims compared to the previous month. The surge in claims was notably influenced by seasonal shifts within the agriculture, construction, and manufacturing sectors.

Revised data for October 2023 paints a different picture from earlier estimations. The preliminary estimated job gain of 7,900 in October was adjusted downward to 3,100 jobs gained. The October unemployment rate remained at 3.8% after adjustments.

On a national scale, the unemployment rate decreased from 3.9% to 3.7% in November, while Washington's labor force saw marginal growth, totaling 4,057,865 individuals, an increase of 1,889 from the preceding month. In the Seattle/Bellevue/Everett region, the labor force expanded by 3,715 during the same period.

Examining the job market, it's noted that while four major industry sectors increased their workforce, eight saw declines, and one remained unchanged. The most significant employment boosts were witnessed in manufacturing, primarily fueled by hiring within the aerospace product and parts manufacturing industry.

Government employment recorded an upswing, primarily in local government, excluding local educational services. However, professional and business services experienced a decline in employment, notably in administrative and support services.

Over the year from November 2022 to November 2023, Washington gained an estimated 40,700 jobs. Notably, the government and education/health services sectors exhibited the most significant growth, with leisure and hospitality also making substantial strides. Conversely, the construction and information sectors faced notable declines.

These shifts underscore a dynamic economic landscape, highlighting both areas of growth and areas under strain within the state's employment sector.