More jobs vanishing in county

By Mike Benbow

Herald Writer

Economic fallout from the Sept. 11 terrorist attacks vaulted Snohomish County’s jobless rate up nearly a full percentage point in October to 5.7 percent, its highest level in nearly six years.

Statewide, the rate surged seven-tenths of a percentage point last month to 6.2 percent, the worst October unemployment in eight years.

Donna Thompson, a regional labor economist for the state Department of Employment Security, said the numbers are the first ripples of the economic slump that has followed the attacks, a slump that will be felt for months.

"You had the major airlines cutting back and laying off huge numbers of people," she said. "A week or two after that, Boeing announced it was cutting 30,000 people, and that sent a shock wave through the whole area."

While the first Boeing layoffs don’t begin until Dec. 14, the effects of the aerospace giant’s announcement started immediately as other companies initiated their own layoffs.

"Because Boeing is such a large part of the economy in Snohomish County, I think we’re like a primary target here for anything that happens in that whole industry," said Thompson, who is based in Everett.

Snohomish County, which had a 4.7 percent jobless rate in September, lost 1,100 jobs last month, with the major declines coming in temporary employment services and in retailing.

Thompson noted that the jobless rolls in the county climbed even faster — by 3,200 people in October — an indication of the large number of residents who work in King County and lost jobs there.

All told, there were 19,500 people out of work in Snohomish County last month from an estimated workforce of 344,300.

In Island County, unemployment also increased dramatically, from 4.1 percent in September to 4.9 percent last month. Out of a labor force of 29,300, 1,400 people were without work in October.

Paul Trause, Employment Security Department deputy commissioner, agreed with Thompson that the September attacks were a blow to the economy. "The economy had weakened across the country before the Sept. 11 tragedy," Trause said. "Although the precise effect of this attack on our state’s economy is still unknown, it is clear our economy has been affected and job growth has slowed substantially."

Thomson said she had expected Snohomish County’s unemployment rate to climb by at least half a percentage point by early next year, but that the attacks dramatically sped things up.

"We’re sort of at ground zero when it comes to the aircraft industry here," Thompson said. "As laid-off Boeing workers reduce their spending, it’s certainly going to affect retail. This ripple effect will take several months going into next year to really assess."

While the unemployment rate is climbing, it’s a far cry from the 11.6 percent rate recorded statewide in the recession of 1982. And Thompson said she doesn’t expect the current economy to come anywhere near that figure.

"We’ve had worst times in the past," she said. "We don’t believe this whole thing will be as bad as it has been in the past."

You can call Herald Writer Mike Benbow at 425-339-3459

or send e-mail to benbow@heraldnet.com.

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