Washington unemployment rate drops to 9.2 percent in April; state gained about 5,800 jobs

By Rachel La Corte, AP
Tuesday, May 18, 2010

Wash. jobless rate drops to 9.2 percent in April

OLYMPIA, Wash. — The state’s unemployment rate fell to 9.2 percent in April, and employers added about 5,800 jobs among all but four of the state’s main business sectors, state officials said Tuesday.

The 0.3 percentage point drop from March’s jobless rate is the largest in a while. There were smaller decreases reported in July and November of last year, though both were ultimately erased by revisions later. If April’s numbers aren’t revised, last month’s decrease could be the first true drop in the unemployment rate since March 2007.

“This is further evidence that our economy is starting to turn around and is headed in the right direction,” Gov. Chris Gregoire said in a written statement. “The job growth is especially welcome news for job seekers.”

The leisure and hospitality industry added the most jobs last month, with 1,800, followed by a 1,600 job increase in government. Most of those government jobs were temporary positions for the U.S. Census. Construction added 1,400 jobs, retail trade was up 1,300, and manufacturing added 1,200 positions. Information gained 500 employees, education and health services added 300 jobs, and wholesale trade increased by 100 jobs.

The gain in construction jobs was a turnaround from prior months. Before April, that industry had suffered monthly job losses for 25 of the last 26 months. The state has lost 64,700 construction jobs since the start of the recession in December 2007.

Year over year, construction still lost more than any other sector, shedding 20,700 jobs.

Even though construction only makes up 5.2 percent of total employment in the state, the sector’s losses since April 2009 accounted for 43 percent of all statewide job losses during that period.

The financial activities sector lost 1,400 jobs in April, followed by transportation, warehousing and utilities, which was down 500 positions. Other services lost 300 jobs, and professional and business services was down 200.

Economists said the state has added jobs in three of the first four months of this year, for a net gain of 14,800 jobs so far.

“That’s a long enough of period to see something of a trend, and it’s a positive trend,” said Dave Wallace, an economist at the Employment Security Department.

Still, overall, the state had 48,400 fewer jobs last month than in April 2009, a 1.7 percent decrease. Nationally, employment declined by 1.7 percent over the past year.

Nearly 307,000 people in the state were unemployed and looking for work last month, and more than 277,000 people received unemployment benefits.

The highest unemployment rate in the state in April was 13.7 percent in Clark County in the southwest. Whitman County in the east, home to Washington State University, had the lowest mark at 5.5 percent. King County, the state’s largest county, was at 7.5 percent.

Last April, Washington’s unemployment rate was 8.8 percent. Washington state’s unemployment rate is lower than the national rate, which was 9.9 percent for April.

Wallace warned that the unemployment rate could still tick up in the state in coming months, mostly because any improvement in the job market will bring in more job hunters who had previously been part of the group of so-called “discouraged workers” who have given up.

Because the state unemployment rate is based on the number of people who are in the labor market, the rate doesn’t include those who have stopped searching for jobs.

Online:

Full report: bit.ly/bnqMqU

Employment Security Department: www.esd.wa.gov

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