Washington state unemployment drops to 9.1 percent

Washington's unemployment rate dropped to 9.1 percent in July and the state gained 4,000 jobs over the month, an increase that hasn't happened in several months, state officials said Tuesday.

"The July numbers are further evidence that the recession is slowing, but it's too soon to say whether we've turned the corner," Employment Security Commissioner Karen Lee said in a written statement. "We expect to see ups and downs for some time to come."

July's rate was down from June's revised rate of 9.2 percent, according to the state Employment Security Department. Initially, June's jobless rate was reported at 9.3 percent, but it was later revised lower. The national rate was 9.4 percent for July.

Last year at this time, Washington's unemployment rate was 5.3 percent. The state lost 123,200 jobs from July 2008 to July 2009, a 4.1 percent decrease. Nationally, employment declined by 4.2 percent over the past year.

Industries with the most job growth in Washington included education and health services, which added 4,400 new jobs, professional and business services, which increased by 2,100. Government gained 1,300 jobs, with most of the additions in local education and tribal employment. State government employment fell by about 1,300.

Industries with the largest declines were construction, which cut 3,200 jobs, financial activities, down 1,900, and manufacturing, which lost 900 jobs.

The approximate gain of 4,000 jobs for the month was the first gain since November 2008, said Caitlin Cormier, spokeswoman for the state Employment Security Department.

The last time the unemployment rate decreased was in April, which initially showed it having no change from the March 9.1 percent rate but was later revised to 9 percent. Before then, the last drop in the rate was November 2007, Cormier said.

"While today's news is reassuring and indicates that the economy may be stabilizing, this does not mean the national recession is over," Gov. Chris Gregoire said in a written statement. "I continue to work closely with President Obama to distribute federal recovery funds efficiently and transparently to keep and create as many jobs in Washington state as possible."

The state has already received and spent about $1 billion in federal stimulus money. Altogether, the state is to receive more than $4 billion. Another $2 billion is tagged for cleanup at south-central Washington's Hanford nuclear reservation, and local governments are set to receive more than $1 billion.

More than 315,850 people in Washington were unemployed and looking for work in July, according to the state Employment Security Department.

The department said that to date, the state has distributed nearly $200 million in state and federal stimulus funds to unemployed workers in the form of temporary benefit increases, on top of normal weekly unemployment benefits.

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On the Net:

Full report: http://tinyurl.com/q2d5g5

Employment Security Department: http://www.esd.wa.gov