Employment Paradox

The unemployment rate jumped to 9.3 percent in August from 8.9 percent in July. That looks terrible. But if you look at the numbers more closely, our economy appears to be stabilizing. In fact, total employment in our state was up by 2,000 in August from the month before, which means we have been creating more jobs than we are losing. How can you be creating more jobs while unemployement is rising so sharply? Simple. The civilian work force expanded by 13,000 people according to the latest numbers by the U.S. Department of Labor show that Washington’s labor force grew by 13,000 from July to August. The increased unemployment is the result of new arrivals in Washington, graduating students, or spouses entering the work force.

Higher unemployment isn’t good news, but attracting new people, particularly talented young people, is very good news. These young people will help support the activities of our many start-ups and put us in a strong position to generate growth when the economy starts to grow again.