Published October 2003

County’s jobless rate
dips to 8.2 percent

By Mike Benbow
Herald Business Editor

Unemployment in Snohomish County dipped slightly in August as work on major construction projects helped offset cutbacks in local government, at the Boeing Co. and elsewhere.

The jobless rate in the county was 8.2 percent, a tenth of a percentage point below July’s unemployment, according to the state Employment Security Department. But the conditions that helped drive the July rate to its highest level in 17 years remain.

For example, layoffs continued in the aerospace sector, which dropped 300 jobs in August. Aerospace jobs in the county dropped to 21,600 in August, compared with 25,300 a year ago. That’s a 14.7 percent cutback. And manufacturing jobs as a whole also declined, falling by 800 jobs in August.

“There continues to be an ongoing restructuring of the economy as high-paying manufacturing jobs are being replaced by lower-paying jobs in services,” said Donna Thompson, local labor economist for employment security.

Thompson noted that the number of nonfarm jobs in the county now total 207,900, a decline of 5,200 during the past year. A number of those jobs are seasonal positions, such as jobs in the local schools, which resumed in September, but many of those positions were eliminated entirely.

Other categories falling in August included local government, which trimmed about 200 positions.

The job news for August showed some bright spots.

Construction projects such as completion of the new Everett Events Center and work on the Snohomish County government office expansion helped increase jobs in that sector by 600.

The professional and business service category also increased in August by 400 jobs. That sector can be a key indicator of an improving economy because businesses often hire temporary help before expanding their own payrolls.

Statewide, unemployment also dropped slightly, from 7.4 percent in July to 7.2 percent in August. When adjusted for seasonal variations, however, the rate remained flat at 7.5 percent, officials said.

“The labor market remains weak,” said Employment Security Commissioner Sylvia P. Mundy. “The unchanged unemployment rate sends a bit of a misleading signal. Actually, there was decline in both employment and unemployment, which may be an indication of discouraged workers leaving the work force.”

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