State continues to add new jobs

Washington's economy kept generating new jobs in June, but the pace of growth continued to slow and the gains were overwhelmingly concentrated in the Puget Sound region.

Statewide, nonfarm payroll employment grew by 3,300 jobs last month, adjusted for seasonal variations, after an upwardly revised gain of 6,900 jobs in May, according to the state Employment Security Department's monthly jobs report.

The Seattle metro area, defined as King and Snohomish counties, gained 3,700 jobs, and Pierce County payrolls grew by 800. Except for small gains in Yakima and the Tri-Cities, the rest of Washington either remained flat or lost jobs last month.

That's quite a change from earlier in the current economic expansion. A year ago, for example, every one of Washington's 11 metropolitan areas showed job gains, as did the other parts of the state.

There were 1.8 percent more payroll jobs this June than in June 2006. After holding at 2.5 to 3.5 percent through 2005 and most of 2006, the year-over-year rate has slipped over the past nine months, reflecting more moderate employment gains.

Nonetheless, the state unemployment rate edged down a tenth of a percentage point to 4.5 percent last month, matching the national jobless rate. The state's jobless rate remains close to the historic low of 4.4 percent set in April.

"We are seeing a little bit of a slowdown in general," said Evelina Tainer, the state's chief labor economist. But overall, she added, "it's another good month for Washington employment."

In the Seattle-Bellevue-Everett area, the June jobless rate held steady at 4 percent.

Part of the reason for the disconnect between the Puget Sound area and the rest of the state, Tainer said, is that it was hit much harder by the recession and took longer to start growing again.

While the rest of Washington experienced mostly mild job losses and resumed growing by early 2002, King and Snohomish counties continued shedding jobs for another year and then remained flat for several months before starting to expand again in early 2004.

The information field was the state's strongest sector, adding 1,400 jobs last month. Construction added 600 jobs last month; the construction sector is up 3.7 percent over the past 12 months.

"I am surprised construction is so strong," Tainer said. "I would have expected to see a little bit of a drop."

The 12-month rate of job growth, however, has slowed for both residential and nonresidential construction, though the housing market's slowdown has weighed on residential payrolls more.

Other leading job-creation sectors included social assistance, which added 800 jobs; bars and restaurants, which hired 600 more people; and fruit and vegetable packing, up 500 jobs.

Though the state's aerospace sector added 400 jobs last month, overall the manufacturing sector lost 200 jobs, mainly due to declines in nondurable-goods industries such as paper and printing. Excluding aerospace, durable-goods manufacturing has been mostly flat for the past year or so.

Wholesalers of nondurable goods fell by 700 jobs last month, and local governments shed 300 jobs.

Drew DeSilver: 206-464-3145 or ddesilver@seattletimes.com