Wash unemployment rate jumps to 7.1 percent in Dec

Washington's unemployment rate jumped to 7.1 percent last month, the largest one month increase in more than three decades.

The jump of more than half a percentage point from 6.4 percent in November was the biggest increase reported since 1976, the state Employment Security Department said Wednesday.

The highest unemployment rate on record in Washington was in November 1982, at 12.2 percent. The lowest was 4.4 percent reported in March and April of 2007. The last time it was at 7.1 percent was in December 2003.

The state jobless rate has nearly caught up to the national rate of 7.2 percent.

"The current situation reflects the fact that no state is immune to the effect of a national recession," said chief economist Mary Ayala.

She noted that Oregon is now at 9 percent unemployment after being at 5.4 percent just a year ago.

Last year at this time, Washington's unemployment rate was 4.6 percent. The state had 54,600 fewer jobs last month than a year ago, a 1.8 percent decrease. Nationally, employment declined by 1.9 percent over the past year.

"In barely a year, we've gone from historically low unemployment to record numbers of people applying for unemployment benefits," Employment Security Commissioner Karen Lee said in a prepared statement.

She noted that a record-setting 90,331 new unemployment applications were filed in December.

Lee said the department has doubled the number of staff answering phones at its call centers and has increased the capacity of its phone system to deal with the increase in unemployment insurance applications.

Economists say nearly 252,000 people are unemployed and looking for work.

Ayala warned it could get worse.

"I don't think anything from the data that I've seen so far indicates we've bottomed out," she said in a conference call with reporters.

The only bright spot?

"Both the governor and President Obama have realized the problem and have done everything to accelerate and get the stimulus program moving," she said.

Last week, Gov. Chris Gregoire unveiled a $1.2 billion economic stimulus package that's tied to Obama's promised federal economic rescue plan. Washington is facing a projected $6 billion budget deficit, which is expected to grow even larger.

Gregoire's stimulus plan would speed up about $800 million worth of previously proposed construction projects, focusing on colleges and highways.

Gregoire spokesman Pearse Edwards said that high unemployment in the state "gives us even more reason to take quick action on federal and state plans to create jobs to help struggling families in Washington state."

Ayala said that since many of the jobs lost in Washington have been construction, any stimulus package that brings infrastructure projects to the state will help bring those jobs back.

Taking the biggest hit last month was professional and business services, down 7,900 jobs, followed by administrative and support services, down 5,600.

Construction lost 4,200 jobs, manufacturing cut 3,500 jobs, and transportation, trade and utilities lost 3,300 jobs.

Industries with the most job growth included information, education and health services, each with 300 new jobs, and aerospace, which added 400.

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On the Net:

Employment Security Department: http://www.go2worksource.com

Unemployment figures by region: http://www.workforceexplorer.com/admin/uploadedPublications/9453-ESR-Jan21-0

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