Published June 2004

Jobless rate holds
steady at 6.8%

By Mike Benbow
Herald Business Editor

A big boost in construction work in April kept Snohomish County’s jobless rate unchanged for the month, even though statewide unemployment rose, the Employment Security Department reported.

County unemployment held steady at 6.8 percent, equaling the revised figure for March. The rate is nearly a percentage point lower than in 2003 at this time, when unemployment was at 7.7 percent.

“Construction continues to show strength and is up by 1,300 (jobs) over the year,” said Donna Thompson, the agency’s labor economist for the county.

Construction jobs were up 7.4 percent from last year, a sign that the economy is improving.

By comparison, manufacturing jobs continue to lag, dropping 100 positions in April, mostly aerospace-related jobs. Over the last year, the county has lost 2,500 Boeing-related jobs, or 10.3 percent of the positions.

Thompson noted that in addition to a boost in the building trades, the county gained 300 jobs at retail stores, 400 at restaurants and bars, 200 in local education, and 200 in the employment field, including temporary help.

Temporary positions are often an indicator of improvement in the economy, as employers first fill needed positions with temporary workers, then hire someone permanently when they’re sure business growth will support it.

While the news didn’t add jobs immediately, Thompson noted that All-Nippon Airways’ decision to order 50 of Boeing’s new 7E7s will eventually lead to 800 to 1,200 more jobs in the local economy.

The jobless numbers mean that of a work force of 353,400 people, an estimated 329,500 had jobs and 23,900 were seeking jobs. There could also be more people without work who have become discouraged and dropped out of the job market.

Statewide, the seasonally adjusted unemployment rate was at 6.3 percent, an increase of two-tenths of a percentage point.

Employment Commissioner Sylvia Mundy said the slight increase wasn’t a bad sign and could indicate that a number of people who had dropped out of the labor market have renewed their job searches because of improvements in the economy.

“This appears to be what happened in April, as both the number of employed and unemployed rose on a seasonally adjusted basis,” she said.

She noted that all major sectors of the economy added jobs “as normal seasonal hiring was bolstered by what now looks like a labor market in recovery.”

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