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State's jobless rate climbs, along with job gains

By Levi J. Long
Seattle Times staff reporter

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Washington's unemployment rate, adjusted for seasonal factors, grew slightly to 6.3 percent in April, from March's 6.1 percent, according to preliminary figures announced yesterday. At the same time, the state gained a total of 8,000 jobs, primarily in construction, trade and transportation.

Local economists say the contradiction between the two statistics arises when a large number of discouraged workers, encouraged by seasonal want ads and favorable economic news, resume their job search.

"At this stage of the recovery, the slight increase in the unemployment rate in Washington is not necessarily a bad sign," said Employment Security Commissioner Sylvia Mundy.

The state jobless rate is based on a count of people receiving unemployment benefits and a survey of 1,200 households. People who aren't looking for work don't figure into the jobless calculation.

"By returning to their job search, these workers were again classified as unemployed in the official unemployment-rate statistics. Unemployment was driven up, despite the month's gain of 8,000 jobs, because there were more returning job-seekers than new jobs," said Seattle economist Roberta Pauer.

Pauer said these numbers show the overall economic picture is one of solid recovery.

Since the 30-month statewide recession ended last June, the statewide labor market has regained 55,000 of the 84,000 jobs lost during the downturn.

Service jobs are expanding more strongly than typical for the season, and that sector is leading the economic recovery, state officials said.

The manufacturing and aerospace sectors saw no gains.

Aerospace is down by 100 more jobs, but Pauer said Boeing has virtually ended its cycle of layoffs.

In the Seattle-Bellevue-Everett area, jobs rose by a total 5,700, on a seasonally adjusted basis, following a revised gain of 4,100 in March.

But in a pattern that mimics the statewide labor market, people returning to the labor market pushed the unemployment rate up to 6 percent in April from 5.7 percent in March.

The Seattle-Bellevue-Everett area has regained 25,000 of the 95,000 jobs lost during the long recession.

The area is lagging the state's rebound, because of steep job losses from Boeing's cutbacks in 2002 and 2003.

The national unemployment rate dropped slightly, to 5.6 percent in April from March's 5.7 percent, with strong job growth for the second consecutive month.

Levi J. Long: 206-464-2061 or levilong@seattletimes.com

Copyright © 2004 The Seattle Times Company

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