Cities taking the brunt of state’s sour economy

  • Nicholas K. Gerianos / Associated Press
  • Friday, December 28, 2001 9:00pm
  • Business

By Nicholas K. Gerianos

Associated Press

SPOKANE — Washington’s economy was heading for the trash bin before the terrorist attacks of Sept. 11, and the evidence was clear in everything from high-tech layoffs to the declining number of movie theaters, a new report says.

Much of the economic pain was centered in the state’s largest cities, the report by the state Employment Security Department found.

"Regionally, it is really the larger metropolitan areas that have posted losses recently," said the report, which covered business activity for October and November. "The mid-size metropolitan areas have generally held their own, even expanded."

The state’s unemployment rate was already moving up before Sept. 11, but the terrorist attacks "certainly amplified the weakness" in the state’s economy, the report said.

Job losses were reported in the labor categories of air transportation, tourism, amusement and recreation services, the report said. Those were industries most likely directly affected by the terrorist attacks.

Washington’s unemployment rate rose to 6.2 percent in October, from 4.9 percent the year before. For metropolitan areas it rose to 6 percent from 4.5 percent.

Adjusted for seasonal changes, the state’s unemployment rate hit 7 percent in November, the highest it’s been in eight years. It is expected to rise more in 2002.

As with previous downturns, Boeing is a major factor. The company plans to lay off 30,000 commercial airplane workers by the middle of next year, in response to weakened demand for airplanes in the wake of the terrorist attacks. Boeing’s first round of 5,000 job cuts was earlier this month and isn’t reflected in the most-recent state unemployment figures.

Much of the rising unemployment was centered in the Seattle-Bellevue-Everett metropolitan area, the report said. Clark County also suffered big job losses.

However, jobs in the Tri-Cities held steady, thanks largely to government hiring for Hanford cleanup work.

Among smaller counties, Adams, Asotin, Clallam, Ferry, Garfield, Grant, Grays Harbor, Okanogan and Skamania counties actually saw their unemployment rates fall during the year, the report said. Douglas, Lewis, Pacific and Walla Walla counties essentially held steady

The report also found:

  • Wine grape growing and processing are one of the agriculture industry’s bright spots. More than 300 grape growers employ about 2,100 workers, mostly in southeastern Washington. The state’s approximately 75 wineries have nearly 900 employees, the report said. The numbers do not include people who grow their own grapes or make their own wine as solo proprietors.

  • Gov. Gary Locke’s request that state agencies trim their budgets will likely result in layoffs. The biggest concentration of state workers, excluding those in education, is in Thurston County, with 20,600. That is followed by King (12,800), Pierce (7,400) and Spokane (4,700) counties.

  • The bicycle industry continues to shrink in Washington. It employs about 400 workers at an average wage of $31,460. Klein Bicycle Corp. is closing its Chehalis plant in February, with the loss of 40 jobs. Raleigh USA of Kent is the last major bike maker in Washington.

  • In 1999, there were 148 movie theater complexes in Washington, employing 3,600 workers. Last year there were 139 theater complexes with 3,300 workers. Most made minimum wage.

  • Based on projections, the state’s minimum wage will likely rise 18 cents on Jan. 1 to $6.90 per hour. The wage is adjusted annually for inflation.

    Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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