State's November jobs report shows economy may have touched bottom

Job losses in Washington remained modest last month, and the unemployment rate edged lower, two signs the state's battered economy may have touched bottom.

The unemployment rate, adjusted to reflect seasonal variations in the labor force, fell to 9.2 percent in November, from 9.3 percent a month earlier, according to the state Employment Security Department's monthly report released this morning.

The jobless rate in the Seattle metro area also fell, to 8.6 percent from 9.2 percent in October.

Both the state and local rates mirror the national trend. The U.S. unemployment rate last month was 10 percent, down from 10.2 percent the month before.

Still, unemployment at all levels is higher than it's been in more than a generation.

The payroll jobs report, which also came out this morning, showed state employers shed a seasonally adjusted 4,800 jobs last month, the same as in October. That continues a trend of moderating job losses throughout the year.

But the recession has taken a heavy toll on working Washington. Since peaking in February 2008, nonfarm payrolls have shrunk in 17 out of 21 months. All told, 166,500 payroll jobs have been lost in the state since the February 2008 peak.

Last month's losses were concentrated in a few sectors. Construction, which has been hit the hardest during the recession, lost 4,300 more jobs; it's down nearly 27 percent since the peak. Bars and restaurants cut 1,600 jobs in November; general merchandise stores shed 1,000.

Those cuts were partially offset by gains in other sectors. Most notably, administrative and support services gained 2,700 jobs last month; that sector, which includes temporary-help services, often is considered a harbinger of future growth in the rest of the economy.

"As things get better, firms tend to sit on the fence when it comes to permanent hiring, but they may do temporary hires," said David Wallace, the state's acting chief labor economist.

Health services and social assistance, a sector that has remained strong throughout the recession, added 900 new jobs in November. Nondurable-goods manufacturing, a category that includes food processing, gained 800 jobs.

The payroll employment report is derived from a survey of employers. The unemployment rate is calculated based on a separate survey of households — not, as is sometimes thought, by counting how many people are receiving unemployment benefits.

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