Washington’s economy faced a setback in March 2025, with an estimated decrease of 5,200 jobs, according to seasonally adjusted data.
Despite this decline, the monthly unemployment rate held steady at 4.4%, showcasing a degree of stability in the labor market.
Anneliese Vance-Sherman, chief labor economist at the Employment Security Department, commented on the trends observed in March, stating, “The unemployment rate stayed steady, and the labor force also maintained relative stability in March.
Slowing job growth took a slight turn this month.”
March marks the third consecutive month of declining employment figures, indicating a potential trend of job losses early in the year 2025.
Vance-Sherman added further context regarding the job market, noting, “This is also the first month reporting high-profile federal government layoffs.
An estimated 100 federal workers were affected by mid-March, with the deepest losses documented in state government employment.”
In the past year, Washington has added a total of 25,100 jobs, reflecting a 0.7% growth in the state’s employment landscape.
Recent data also highlights that nonfarm employment decreased by 5,200 jobs in March, with a significant drop in government employment, which decreased by 4,100.
This loss was comprised of 100 federal jobs, 600 general state government positions, and 3,400 jobs in the state government education sector.
On a brighter note, several industries in the private sector saw gains during the month, with the information sector increasing by 1,600 jobs, retail trade by 1,400, and professional and business services by 800.
The Employment Security Department reported that 74,688 individuals received unemployment benefits in March, indicating a decrease of 2,667 claimants compared to the previous month.
Decreases in claims were primarily observed in construction, agriculture, and administrative support, as well as waste management services, contributing to the overall reduction in unemployment benefits.
The department emphasizes that every month, it publishes preliminary seasonally adjusted estimates for job changes and unemployment.
They also confirm data from the previous month to provide a more comprehensive picture of the labor market.
In revisions from February 2025, it was discovered that the initial estimated loss of 7,200 jobs was adjusted to a loss of 6,600 jobs, with the unemployment rate remaining unchanged at 4.4%.
In contrast, the national unemployment rate saw an increase from 4.1% in February 2025 to 4.2% in March 2025, which marks a rise compared to 3.9% in March 2024.
When analyzing local trends, the number of unemployed individuals in Washington rose from 176,850 to 177,378 from February to March 2025.
In the Seattle/Bellevue/Everett region, unemployment also increased, climbing from 96,279 to 99,008 during the same period.
The state’s labor force in March registered at 4,057,832, showing a decrease of 4,720 people from the previous month.
Interestingly, the labor force in the Seattle/Bellevue/Everett area experienced a slight increase, with 3,269 additional individuals entering into the labor market.
It is important to understand that the labor force is defined as the total number of employed and unemployed individuals aged 16 and over.
Though layoffs are occurring, they do not necessarily correlate with a decrease in labor force participation.
Individuals who are laid off but continue to seek employment are still considered part of the labor force.
A reduction in the labor force typically indicates that people have left the workforce and are not actively seeking employment for more than four weeks.
Over the course of the year, ten major industry sectors experienced expansion while three sectors contracted.
Private sector employment saw an increase of 23,300 jobs from March 2024 to March 2025, while government employment expanded by 1,800 during the same time frame.
Key contributors to the private sector growth included education and health services, which added 16,300 jobs; information, gaining 8,700; and professional and business services, which added 6,100 jobs.
Within the education and health services sector, the majority of job growth was anchored in health and social services, with ambulatory health care services alone adding 7,800 positions.
Conversely, notable sector losses were recorded in construction, with a decrease of 12,500 jobs, and manufacturing, which shrank by 5,000 jobs.
The decline in the construction sector primarily stemmed from losses among specialty trade contractors, which saw a contraction of 8,500 jobs, although losses were widespread throughout the entire sector.
Washington’s overall employment landscape shows both challenges and growth opportunities as the state navigates job market fluctuations in 2025.
image source from:https://thesubtimes.com/2025/04/19/washington-state-unemployment-rate-holds-steady-in-march-at-4-4/