Washington unemployment rate falls to 4.8% in September

OLYMPIA — Washington's unemployment rate declined for the third consecutive month in September, falling to 4.8% even as employers shed an estimated 15,400 jobs, according to preliminary figures from the Washington Employment Security Department.

The September unemployment rate was down from 4.9% in August and 5% in July, continuing a downward trend after several years of gradual increases. However, state labor economists said the decline reflects both fewer unemployed workers and a shrinking labor force.

“The unemployment rate fell to 4.8% in September, creating a three-month streak in declining unemployment rates, and marking a shift from the slow increases that characterized the past couple years.” said Anneliese Vance-Sherman, chief labor economist for the Employment Security Department. “The falling unemployment rate is partially a reflection of a decreasing number of unemployed workers over the past few months, but it also reflects an overall reduction in the size of the labor force over the past few months.”

Washington's unemployment rate remained above the national rate, which increased from 4.1% in August to 4.2% in September. The state's rate was also slightly higher than the 4.7% recorded in September 2025.

Despite the monthly job losses, Washington had 9,200 more jobs than a year earlier, representing an increase of 0.3%.

Private sector employment declined by 5,000 jobs in September, while government employment fell by an estimated 10,400 jobs. The figures are seasonally adjusted.

“The tally of nonfarm jobs fell in September, with the largest seasonally adjusted declines appearing in the government and education and health services sectors – two of Washington’s largest employment sectors.” Vance-Sherman added.

Government experienced the largest monthly decline, followed by private education and health services, which lost 4,900 jobs. Transportation, warehousing and utilities declined by 1,800 jobs, while manufacturing lost 1,700.

Within private education and health services, private educational institutions accounted for 4,500 lost jobs. Manufacturing losses were concentrated in food production, which shed 1,400 jobs.

Four major industry sectors recorded employment gains during September, while eight experienced declines.

Professional and business services led private sector growth, adding 1,800 jobs. Gains included 800 positions each in professional, scientific and technical services and in administrative support, waste management and remediation services.

Construction employment increased by 1,500 jobs, driven by 1,800 additional positions in specialty trades. Those gains were partially offset by a loss of 300 jobs in building construction.

The information sector added 1,400 jobs, although none of the increase came from software publishing.

The number of unemployed Washington residents declined from 197,389 in August to 193,018 in September, a decrease of 4,371 people.

In the Seattle-Bellevue-Everett metropolitan area, the number of unemployed residents fell from 113,550 to 111,986 during the same period.

Washington's labor force totaled 4,045,430 people in September, down 11,562 from a year earlier. The Seattle metropolitan area's labor force decreased by 1,140 over the same period.

The labor force includes employed residents and unemployed people age 16 and older who are actively seeking work. People who stop looking for employment are no longer counted in the labor force, even if they remain without jobs.

The Employment Security Department also reported a decline in the number of residents receiving unemployment benefits.

The agency paid benefits to 57,685 people in September, down 2,271 from August. Decreases in claims were concentrated in health care and social assistance, agriculture, administrative and support services, and waste management and remediation services.

Washington's monthly employment figures are preliminary and subject to revision as additional information becomes available. Previous months' estimates are routinely updated.

The Employment Security Department is scheduled to release county-level employment estimates Oct. 20, providing additional information about labor market conditions across North Central Washington and the rest of the state.