Washington State unemployment rate holds steady at 4.4%

OLYMPIA — Washington’s unemployment rate held steady at 4.4% in March as the state’s economy recorded an estimated loss of 5,200 jobs, according to the Washington State Employment Security Department.

“The unemployment rate stayed steady, and the labor force also maintained relative stability in March. Slowing job growth took a slight turn this month,” said Anneliese Vance-Sherman, chief labor economist at the department. “March marks the third month in a row of declining employment, marking a trend of job losses in the early months of 2025.”

Vance-Sherman noted that the month also marked the first time high-profile federal government layoffs were reported. "An estimated 100 federal workers were affected by mid-March with the deepest government losses documented in state government," she said.

Overall, Washington added 25,100 jobs in the past 12 months, a 0.7% increase. Private sector employment increased by 23,300 jobs over the year, while government employment rose by 1,800.

In March, nonfarm employment fell by 5,200 jobs. Government employment declined by 4,100 jobs, including reductions of 100 federal jobs, 600 general state government jobs, and 3,400 state government education jobs. Among private industry sectors, information gained 1,600 jobs, retail trade added 1,400, and professional and business services grew by 800.

Employment Security paid unemployment benefits to 74,688 people in March, a decrease of 2,667 from February. Decreases in paid claims were noted in construction, agriculture, and administrative support and waste management services.

The state's labor force stood at 4,057,832 in March, a decrease of 4,720 from February. In the Seattle/Bellevue/Everett region, the labor force increased by 3,269 over the same period.

From February to March, the number of unemployed people statewide increased from 176,850 to 177,378. In the Seattle/Bellevue/Everett region, unemployment rose from 96,279 to 99,008.

The national unemployment rate rose from 4.1% in February to 4.2% in March. One year ago, in March 2024, the national unemployment rate was 3.9%.

Annual employment trends showed mixed results. Education and health services gained 16,300 jobs, information added 8,700, and professional and business services grew by 6,100. Losses were concentrated in construction, down 12,500 jobs, and manufacturing, which shed 5,000 jobs.

Within the construction sector, specialty trade contractors accounted for the bulk of losses, with an 8,500 job decline over the year.

Monthly job losses were also reflected in several industries. According to March data, information added 1,600 jobs, retail trade gained 1,400, and professional and business services increased by 800. However, construction, manufacturing, and education and health services all posted losses of 1,300, 1,300, and 1,200 jobs, respectively. Government employment dropped by 4,100 jobs.

The Employment Security Department noted that monthly employment estimates are based on a small Bureau of Labor Statistics payroll survey, with figures adjusted the following month based on a more complete survey.