Published July 2002

Jobless rate holds steady
at 7.5 percent

By Mike Benbow
Herald Business Editor

The jobless rate in Snohomish County has finally flattened out — good news considering the rapid rise since the Sept. 11 terrorist attacks and continued layoffs by the Boeing Co.

Snohomish County’s unemployment was at 7.5 percent in May, the same as the revised number for April and also identical to March’s jobless rate, according to figures released by the state Department of Employment Security.

Statewide, unemployment declined one-tenth of a percentage point in May to 6.9 percent. Adjusted for seasonal factors, the Washington state number was 7.1 percent.

Donna Thompson, the agency’s labor economist for Snohomish County, said jobs added in the construction and retail industries brought “a welcome ray of light to an economy that’s been in the gloom of recession for too long.”

Construction added 600 jobs, and retailers added an equal amount, with 200 in food stores and 200 in restaurants and bars.

The local economy typically adds jobs this time of year, but the increases were partially offset by continued cutbacks elsewhere.

Boeing-related jobs in the county fell by 100 during May, and government shed 200 jobs for the summer. There were also cutbacks in engineering and social-service fields, wholesale trade, durable goods and transportation equipment.

Last year at this time, the local jobless rate was 4.8 percent, but layoffs escalated quickly after Sept. 11. The good news this time around was that in May 2001, the county added only 800 jobs from the previous month, while this year, 1,400 jobs were added in May.

In Snohomish County, the numbers mean that from among an estimated labor force of 338,300 people, 313,000 were working and 25,300 were not.

Statewide, the numbers were viewed as lackluster at best.

“We usually see larger gains in construction, retail trade, lodging, and amusement and recreation,” said Employment Security Commissioner Sylvia Mundy.

The state added 18,000 jobs in May, a 0.7 percent increase. The typical increase for the month is 1 percent. Service industries accounted for 6,100 of those jobs, especially business services, lodging, and amusement and recreation.

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