State's jobless rate shrinks to 8.9 percent

Unemployment in Washington fell to 8.9 percent in June, the third straight monthly decline and the lowest rate in more than a year, the state Employment Security Department reported Thursday.

June also was the fourth month in a row in which private-sector employers added jobs, though that picture was muddied by the loss of 8,000 government jobs — nearly 4,400 of them temporary Census Bureau workers reaching the end of their terms.

Together, the falling jobless rate and growing private-sector payroll suggest that the state's economy has regained its footing, though job growth is likely to be modest for some time to come.

"We're certainly not growing like gangbusters, but we are showing some signs of recovery," said David Wallace, the state's acting chief labor economist.

The jobless rate, adjusted to reflect seasonal variations in the labor force, fell from an upwardly revised May rate of 9.2 percent. Unemployment appears to have peaked in March at 9.5 percent; however, it remains far above the spring 2007 low of 4.4 percent.

The Seattle metro area's unemployment rate ticked down to 8.3 percent last month, from 8.4 percent in May. Both the state and the Seattle area are below the national average of 9.5 percent.

Private-sector employers, who account for the vast bulk of jobs in Washington, added 4,500 jobs last month, and 20,100 since the start of the year.

However, the total number of nonfarm payroll jobs in the state — counting both the public and private sectors — fell by 3,500 last month, and is 17,000 below the level in June 2009.

(Unemployment rates are based on a survey of individuals; a separate survey of employers produces the payroll numbers.)

Health and social services grew by 1,500 jobs in June, construction by 1,000, retail by 900, and aerospace manufacturing by 700. Besides government, the biggest decliners were financial services (down 500 jobs) and nondurable goods manufacturing (off 400 jobs).

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