Job market better in state, worse in county

Published 8:47 pm Tuesday, March 2, 2010

EVERETT — Snohomish County’s unemployment rate climbed to 10.5 percent in January as employers in most sectors continued to shed jobs.

The county lost 2,500 jobs last month, including 1,400 alone in its retail stores.

The local jobless rate grew four-tenths of a percentage point from the 10.1 percent rate in December. The was significantly more than the state average, which increased from a revised 9.2 percent rate in December to 9.3 percent last month.

While statewide unemployment increased slightly, the number of jobs in Washington increased by about 12,400 positions, the first monthly gain since November 2008.

“This is great news for Washington state, and yet another sign that our economy is on the rebound,” Gov. Chris Gregoire said in a news release.

Karen Lee, the employment security commissioner, called the job increase, an encouraging sign. “I hope it signals the beginning of a job-full recovery, not a job-less recovery,” she said.

Statewide, the jobless rate was originally estimated at 9.5 percent for December, but it was lowered to 9.2 percent. The highest-ever rate in Washington was 12.2 percent in November 1982.

While the state news was positive, the numbers were bleaker in Snohomish County.

Many retailers shed jobs after the Christmas holidays, which was expected. But the county also lost 500 jobs in professional and businesses services last month and smaller amounts in numerous other sectors.

Aerospace, which has shed 900 jobs in the county during the past year, actually added 100 jobs in January, one of the few local sectors with job gains.

Arun Raha, the state’s chief economist, has said he expected unemployment to climb in Snohomish County in January, February and likely March before starting to decline in April or May.

He said Tuesday that he expects the state jobless rate to peak at about 9.8 percent this spring.

“I remain cautiously optimistic as there is still an amount of economic turbulence, and any recovery is certain to be uneven,” said Dave Wallace, chief economist for Employment Security.

Wallace noted that it’s not unusual for the state’s jobless rate to rise along with the number of jobs. He noted that the rate is based on people actively seeking work and doesn’t include the people who can’t find work and have given up their search.

As the numbers of jobs increase, more people will re-enter the job market, he said.

The Associated Press contributed to this report.