Nearly 1 in 5 workers in state "underemployed"

Lorilee Lines applied for more than 200 jobs this year before she finally accepted temporary work through a staffing agency.

She had worked for a decade as an analyst and administrator for a national accounting firm — until January, when her entire unit was eliminated.

Now, as a temporary administrative assistant, Lines can't bank on 40 hours of work. Some weeks she gets 16, other weeks more than 30, through Seattle agency Woods & Associates.

Lines, 49, has joined those who don't show up in the official monthly unemployment rate — which was unchanged at 9.1 percent in October, state officials said Wednesday. That's lower than the national unemployment rate of 9.6 percent.

But under the broadest measure of joblessness, nearly one in five workers in the state — 18.1 percent — was "underemployed" in the 12 months ending Sept. 30, compared with a national rate of 16.8 percent, according to the U.S. Bureau of Labor Statistics.

By this yardstick, Washington ranked ninth-highest among the states, up from 19th a year ago. Nevada, California, Michigan and Oregon lead the nation, with underemployment over 20 percent.

This measure of joblessness counts involuntary part-time workers who want full-time jobs as well as unemployed people who stopped looking for work in the past four weeks for various reasons.

"It's a more inclusive gauge of people who are economically distressed because of their work circumstances," said Dave Wallace, acting chief economist for the state Department of Employment Security.

"Very few of those part-timers are happy about it," he said, because they can't get health benefits and struggle to pay their bills.

Lines said she hasn't been able to get her mortgage modified and may have to cash out her retirement account to save her house.

Temporary hiring

Temporary staffing has powered the growth this year of the professional and business-services sector, which led all private sectors last month with 1,500 new jobs.

In the past, temporary staffing has been an early indicator of a recovery, but Wallace and other economists say it's hard to say if those jobs will turn into permanent hires.

Overall, Washington added about 1,900 private-sector jobs in October, with other gains in wholesale trade, up 800 jobs; information, 400; financial activities, 400; and retail trade, 300.

Sectors that lost jobs last month were construction, down 400; manufacturing, 400; transportation, warehousing and utilities, 300; leisure and hospitality, 200; and mining and logging, 200.

"We're talking about a mildly positive month," Wallace said.

While the underemployment rate captures part-timers, it doesn't reflect those working full time in jobs for which they're overqualified.

John Berry graduated from Seattle University's law school last spring with dreams of practicing environmental law. Before law school, he'd worked in an environmental firm analyzing water, soil and tuna for trace amounts of mercury.

Instead of helping clients with permitting issues and drawing up contracts, Berry started this week doing nonlegal research for a logistics firm.

"It's not exactly attorney work," said Berry, 29, who adds quickly he's very happy to have the 40-hour-a-week temporary job.

With more than $140,000 in student-loan debt, Berry said he had little choice.

After more than 20 meetings with people in the legal field, he realized law firms weren't hiring attorneys who didn't have at least a few years of experience, even though he passed the state bar exam.

He even considered applying for manual-labor jobs in warehouses or coffee shops until the research job came through.

"I just don't see there being the same job market for lawyers that there was three or four years ago anytime soon, or ever, really."

Desiree Phair, the state's economist for King County, said she believes a longer-term shift may be under way among employers toward contract labor instead of permanent hires. "I've heard enough anecdotes that I'm starting to seriously consider the possibility," she said.

So far this year, Washington has seen a net gain of 6,000 jobs. The private sector added 10,200 jobs, but those gains were offset by losses in government jobs.

Washington had 8,500 fewer jobs in October than it did a year ago, a 0.3 percent decrease, Employment Security reported. The nation recorded 0.6 percent growth over the same period.

An estimated 302,286 people in the state were unemployed and looking for work last month, officials said.

Federal emergency-unemployment benefits that last up to 99 weeks start phasing out at the end of this month.

Between now and April, state officials estimate more than 125,000 people in Washington will lose their benefits.

Lines just received notice that her emergency-unemployment benefits will run out at the end of this month.

She's already been living frugally: She drives a 20-year-old car. She doesn't buy new clothes or eat out as much. She's taking evening classes to get her bachelor's degree in accounting.

"When I lost my job, it made me start questioning my abilities," Lines said. "Taking classes has helped me gain back my confidence."

Sanjay Bhatt: 206-464-3103 or sbhatt@seattletimes.com