Published: Thursday, January 21, 2010
County jobless rate climbs to 10.3 percent
The state’s chief economist says unemployment should peak soon. Meanwhile, the Legislature hopes to create jobs.
Another jarring uptick in unemployment fed debate Wednesday among the competing visions of Democratic and Republican lawmakers on how best to create new jobs.
Washington’s jobless rate rose to 9.5 percent in December with roughly 334,300 people out of work and seeking benefits, according to the state Employment Security Department.
In Snohomish County, the unemployment rate again pushed up into double digits, climbing to 10.3 percent over November’s seasonally adjusted rate of 9.5 percent.
The job market is usually one of the last things to recover following a recession, state officials said Wednesday. Job losses appear to be slowing; Washington lost about 23,700 jobs in the last half of 2009, compared to 80,000 jobs in the first six months.
Arun Raha, the state’s chief economist, said Wednesday that Washington is continuing to shed jobs even as the economy begins to improve.
“It’s normal for unemployment to rise even in a recovery,” he said in a speech in Everett to the Economic Development Council of Snohomish County. “It (unemployment) should probably peak in March or April.”
Raha said businesses are waiting for clear signals of improvement.
“The problem is businesses are not confident that the recession is over, so they’re hiring temporary workers,” he said.
Fixing unemployment
In Olympia, legislators unrolled blueprints for putting people back to work.
On a party line vote, Democrats in the House of Representatives approved a bond measure for the November ballot to raise $861 million for renovating, weatherizing and rehabilitating schools and public buildings.
Under House Bill 2561, dubbed The Jobs Act, money saved on energy costs coupled with general fund revenues would repay the bonds.
Rep. Hans Dunshee, D-Snohomish, who is the bill’s sponsor, said it would create at least 38,000 jobs starting next spring, lower the energy bills of school districts and net much-needed sales tax revenues for state coffers.
“It saves money. It pays for itself. It provides jobs in every corner of the state,” Dunshee said.
Republicans argued the legislation fails to create jobs quickly enough and increases the amount of state debt to levels that could hurt economic recovery. “I don’t believe it can live up to the promises it makes,” said Rep. Ed Orcutt, R-Kalama.
Dunshee’s bill is not getting a warm welcome outside the House chamber. It is expected to be heard by a Senate committee but may not come up for a vote. State Treasurer Jim McIntire opposed the bill Wednesday, warning that taking on additional debt could affect the state’s credit rating.
In the meantime Wednesday, Republican leaders, surrounded by small business owners, proposed changes they said will energize the private sector.
They called for lower unemployment insurance and workers compensation taxes, streamlining permitting processes and exempting startup companies from paying the business and occupation tax on gross receipts.
“Without the jobs we won’t have the revenue to pay for all the things we want to do” in this state, said Rep. Dan Kristiansen, R-Snohomish.
Behind unemployment rates
News of rising unemployment came as many retailers reported holiday sales solid enough to generate higher-than-predicted tax revenues for the first time in months.
With layoffs decreasing and unemployment rising, state officials said the job market is a little murky.
Part of the uptick in jobless numbers could be caused by discouraged workers resuming job searches, officials said. Workers are only counted as part of the labor force if they’re employed or actively seeking employment, so renewed efforts could translate to a higher rate.
“It’s pretty common as we come out of recession,” said Desiree Phair, a state labor economist for King and Snohomish counties. “People look around and they say, ‘Oh, everyone’s hiring.’”
Washington’s jobless rate rose to 9.5 percent in December with roughly 334,300 people out of work and seeking benefits, according to the state Employment Security Department.
In Snohomish County, the unemployment rate again pushed up into double digits, climbing to 10.3 percent over November’s seasonally adjusted rate of 9.5 percent.
The job market is usually one of the last things to recover following a recession, state officials said Wednesday. Job losses appear to be slowing; Washington lost about 23,700 jobs in the last half of 2009, compared to 80,000 jobs in the first six months.
Arun Raha, the state’s chief economist, said Wednesday that Washington is continuing to shed jobs even as the economy begins to improve.
“It’s normal for unemployment to rise even in a recovery,” he said in a speech in Everett to the Economic Development Council of Snohomish County. “It (unemployment) should probably peak in March or April.”
Raha said businesses are waiting for clear signals of improvement.
“The problem is businesses are not confident that the recession is over, so they’re hiring temporary workers,” he said.
Fixing unemployment
In Olympia, legislators unrolled blueprints for putting people back to work.
On a party line vote, Democrats in the House of Representatives approved a bond measure for the November ballot to raise $861 million for renovating, weatherizing and rehabilitating schools and public buildings.
Under House Bill 2561, dubbed The Jobs Act, money saved on energy costs coupled with general fund revenues would repay the bonds.
Rep. Hans Dunshee, D-Snohomish, who is the bill’s sponsor, said it would create at least 38,000 jobs starting next spring, lower the energy bills of school districts and net much-needed sales tax revenues for state coffers.
“It saves money. It pays for itself. It provides jobs in every corner of the state,” Dunshee said.
Republicans argued the legislation fails to create jobs quickly enough and increases the amount of state debt to levels that could hurt economic recovery. “I don’t believe it can live up to the promises it makes,” said Rep. Ed Orcutt, R-Kalama.
Dunshee’s bill is not getting a warm welcome outside the House chamber. It is expected to be heard by a Senate committee but may not come up for a vote. State Treasurer Jim McIntire opposed the bill Wednesday, warning that taking on additional debt could affect the state’s credit rating.
In the meantime Wednesday, Republican leaders, surrounded by small business owners, proposed changes they said will energize the private sector.
They called for lower unemployment insurance and workers compensation taxes, streamlining permitting processes and exempting startup companies from paying the business and occupation tax on gross receipts.
“Without the jobs we won’t have the revenue to pay for all the things we want to do” in this state, said Rep. Dan Kristiansen, R-Snohomish.
Behind unemployment rates
News of rising unemployment came as many retailers reported holiday sales solid enough to generate higher-than-predicted tax revenues for the first time in months.
With layoffs decreasing and unemployment rising, state officials said the job market is a little murky.
Part of the uptick in jobless numbers could be caused by discouraged workers resuming job searches, officials said. Workers are only counted as part of the labor force if they’re employed or actively seeking employment, so renewed efforts could translate to a higher rate.
“It’s pretty common as we come out of recession,” said Desiree Phair, a state labor economist for King and Snohomish counties. “People look around and they say, ‘Oh, everyone’s hiring.’”
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