Wenatchee region posts fifth straight month of job sosses

The Wenatchee Metropolitan Statistical Area (MSA) lost 1,500 jobs in September 2024, marking a 3.0% drop in total nonfarm employment compared to the same period last year, according to a detailed labor market report compiled by Donald W. Meseck, Regional Labor Economist for the Employment Security Department.

The two-county region, comprising Chelan and Douglas counties, fell to 48,900 nonfarm jobs, recording its fifth consecutive month of job losses. The decline stands in stark contrast to Washington state's broader economic performance, which has logged 42 straight months of employment growth, adding 44,600 jobs statewide for a 1.2% increase since September 2023.

The leisure and hospitality sector bore the brunt of the downturn, shedding 500 jobs for a 6.8% decline compared to last year, dropping from 7,300 to 6,800 positions. Regional wildfires during the summer months drove much of this decline, affecting tourism and recreational activities throughout central Washington. This marks a significant reversal for the sector, which had previously recorded 36 consecutive months of job growth from April 2021 through March 2024.

Manufacturing employment contracted 6.5% year-over-year, while local government positions decreased by 2.7%, losing 200 jobs. The private sector overall shed 1,300 jobs, representing a 3.2% decrease from September 2023.

Some sectors showed growth amid the broader decline. Retail trade added 300 jobs for a 4.7% increase, while education and health services grew by 200 positions, up 2.4%. The construction sector maintained stability at 4,100 jobs, despite fluctuations in the housing market.

The region's real estate market showed increasing momentum, with closed sales of single-family homes and condominiums in the Wenatchee market climbing 10.4% in the first nine months of 2024, reaching 605 sales compared to 548 during the same period in 2023. The median sales price rose 6.0% to $514,000, while the average sales price jumped 7.1% to $575,377, indicating strong activity in higher-priced homes. Active listings surged 33.7%, with 226 properties on the market in September 2024 compared to 169 a year earlier.

Despite the job losses, the area's unemployment rate improved slightly to 3.5% in September 2024, down from 3.6% a year earlier. The civilian labor force grew by 342 workers to 68,201, a 0.5% increase. The number of unemployed residents decreased by 39 to 2,371 people.

The report highlighted significant structural changes in the region's agricultural sector over the past decade. In Chelan County, agricultural employment fell 12.8% between 2013 and 2023, losing 1,193 jobs, while agricultural wages grew 40.7% to $287.0 million. Douglas County saw an even steeper 22.4% decline in agricultural jobs during the same period, losing 658 positions, while wages increased 38.6% to $82.5 million. These shifts suggest a transformation toward more full-time, year-round positions and increased automation in the agricultural sector.

The broader transformation of the local economy is evident in agriculture's declining share of total employment. In Chelan County, agriculture's portion of covered employment fell from 23.5% in 2013 to 17.9% in 2023, while Douglas County saw a drop from 26.9% to 18.5% during the same period.