(The Center Square) – Washington’s economy saw both job gains and an uptick in unemployment in December, according to the state Employment Security Department.
The mixed signs stemmed from expansion in nine industry sectors, particularly leisure and hospitality, and contraction in four others, primarily construction and retail trades, the agency announced in its latest monthly report.
“December’s job growth was the strongest since June 2023 and marked five consecutive months of job growth, after revisions to November data,” Anneliese Vance-Sherman, state economist with ESD, said in a press release.
But despite strong job gains, the state’s unemployment rate also inched up from 4% in November to an estimated 4.2% last month, she said.
“The overall trend in 2023 has been the slowing of a still-strong labor market after the tumultuous ups and downs of COVID-19 economic recovery,” said Vance-Sherman.
Hiring by restaurants and bars helped the leisure/hospitality sector post the biggest employment gains, up an estimated 2,600 jobs in December. Employment in professional and business services increased by 1,700 jobs, with the largest gains observed in professional, scientific and technical services. And the manufacturing sector received a boost from aerospace industry employment, up 400 jobs last month. Food manufacturing was up 300, ESD reported.
The construction sector, which is subject to seasonal layoffs, was unsettled. Specialty trades contractors shed 1,700 jobs, negating gains of 800 jobs in building construction and 200 jobs in engineering services, the report showed.
Retail trades saw an estimated net loss of 600 jobs; transportation, warehousing, and utilities also dropped 600 jobs in December.
Last month, Employment Security paid unemployment benefits to 68,170 people, an increase of 6,344 claims from November. Along with construction, there were seasonal unemployment increases in the agricultural and manufacturing industries.
The state’s overall labor force totaled just under 4.06 million people, increasing by 1,907 from November to December. Labor force is defined as the total number of people, both employed and unemployed over age 16. That includes individuals who may be laid off but are still seeking work.
Washington’s estimated unemployment rate of 4.2% in December was higher than the national rate of 3.7%, which remained constant last month, ESD reported.
Over the past year, the agency said Washington gained an estimated 54,200 job between December 2022 and last month. In the 12-month span, private sector employment rose by 34,800 jobs, an increase of 1.2%, led by the leisure/hospitality sector, up 15,500. Public sector employment added an estimated 19,400 jobs, up 3.4%. Education and health services also increased over the year by adding 18,700 jobs.
