Published: Sunday, February 15, 2009
Three industries that drive the Snohomish County labor market are all hurting
Construction. Aerospace. Retail.
The industries present a triple threat in terms of jobs losses in Snohomish County, which has seen its unemployment rate soar to 7.1 percent last December, up from just 4.1 percent in December 2007.
"In 2007, we were still riding high," said Donna Thompson, labor economist with the Employment Security Department. "Boeing was still hiring and the housing market was still good."
But the credit crunch caught up with the county in early 2008. Last year, Snohomish County lost more than 11,000 jobs ending the year with 27,140 people out of work. And 2009 isn't shaping up to be any better, Thompson said.
Aerospace has been a bright spot in Snohomish County employment. But that's about to change. The Boeing Co. plans to reduce its worldwide work force by 10,000 jobs. At least 4,500 people in the commercial airplanes division will receive notices this week. The company already has given layoff notices to 668 Puget Sound-area employees in different divisions.
"We are indeed facing one of the more difficult commercial and financing markets that most of us have ever seen," Jim McNerney, Boeing's chief executive, said last month.
Although Boeing officials initially said that they won't reduce the jet production work force, they've since indicated that a drop in production is likely in 2010, meaning further job cuts.
There were signs of a downturn in late 2007, when construction jobs declined more sharply than usual, Thompson said.
"It's been downhill ever since," she said.
With foreclosure rates up and house prices down, builders basically have halted new residential projects, she said. The industry cut 2,000 positions in the last 12 months in Snohomish County. The decline in construction projects began having an effect on construction-related manufacturers, including Milgard Windows, which closed its Marysville plant in October.
Boat-builder Meridian Yachts dealt the county its single largest mass layoff last year with 721 positions lost in the closure of its Arlington facility. And the county's biotech base in Bothell lost more than 800 jobs over the last two years.
Industries that rely on discretionary spending also have seen steep job losses over the last year. People also dined out less often and bought fewer items from retailers in the county. Food services slashed 1,900 jobs while the retail industry shed 1,700 positions. Several major retailers closed their doors, including Steve & Barry's and Linens N Things.
Economist Thompson sees few industries in the county that may be spared job cuts this year. Employment levels in the fields of health care and education -- especially private training programs -- remain strong, she said.
The industries present a triple threat in terms of jobs losses in Snohomish County, which has seen its unemployment rate soar to 7.1 percent last December, up from just 4.1 percent in December 2007.
"In 2007, we were still riding high," said Donna Thompson, labor economist with the Employment Security Department. "Boeing was still hiring and the housing market was still good."
But the credit crunch caught up with the county in early 2008. Last year, Snohomish County lost more than 11,000 jobs ending the year with 27,140 people out of work. And 2009 isn't shaping up to be any better, Thompson said.
Aerospace has been a bright spot in Snohomish County employment. But that's about to change. The Boeing Co. plans to reduce its worldwide work force by 10,000 jobs. At least 4,500 people in the commercial airplanes division will receive notices this week. The company already has given layoff notices to 668 Puget Sound-area employees in different divisions.
"We are indeed facing one of the more difficult commercial and financing markets that most of us have ever seen," Jim McNerney, Boeing's chief executive, said last month.
Although Boeing officials initially said that they won't reduce the jet production work force, they've since indicated that a drop in production is likely in 2010, meaning further job cuts.
There were signs of a downturn in late 2007, when construction jobs declined more sharply than usual, Thompson said.
"It's been downhill ever since," she said.
With foreclosure rates up and house prices down, builders basically have halted new residential projects, she said. The industry cut 2,000 positions in the last 12 months in Snohomish County. The decline in construction projects began having an effect on construction-related manufacturers, including Milgard Windows, which closed its Marysville plant in October.
Boat-builder Meridian Yachts dealt the county its single largest mass layoff last year with 721 positions lost in the closure of its Arlington facility. And the county's biotech base in Bothell lost more than 800 jobs over the last two years.
Industries that rely on discretionary spending also have seen steep job losses over the last year. People also dined out less often and bought fewer items from retailers in the county. Food services slashed 1,900 jobs while the retail industry shed 1,700 positions. Several major retailers closed their doors, including Steve & Barry's and Linens N Things.
Economist Thompson sees few industries in the county that may be spared job cuts this year. Employment levels in the fields of health care and education -- especially private training programs -- remain strong, she said.
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