Washington labor market statistics at a glance
Washington’s labor market entered 2026 with mixed signals: payrolls kept growing, but unemployment also edged higher. The cleanest reading is that the state is still adding jobs, yet the labor force and unemployment counts are moving in a way that deserves close attention (ESD January 2026 news release; BLS Washington EAG).
Big number: Washington’s unemployment rate was 5.0% in January 2026, up from 4.9% in December 2025 and 4.4% in January 2025 (ESD January 2026 news release).
Fast facts
- Washington’s economy added an estimated 2,800 seasonally adjusted jobs in January 2026 (ESD January 2026 news release).
- The private sector added 8,200 jobs, while the public sector lost 5,400 jobs (ESD January 2026 news release).
- Employment Security paid unemployment benefits to 85,534 people in January 2026 (ESD January 2026 news release).
- Washington’s unemployed count increased to 204,366 in January 2026 from 198,168 in December 2025 (BLS Washington EAG).
- The state’s labor force was 4,065.1 thousand in January 2026 and 4,064.4 thousand in March 2026 (BLS Washington EAG).
Table of contents
- Washington labor market statistics at a glance
- How Washington’s job market changed in early 2026
- Washington unemployment rate and labor force trends
- Industry breakdown for Washington employment
- Washington labor underutilization in 2025
- County labor market snapshots
- What the Washington labor market statistics show
How Washington’s job market changed in early 2026
The headline story is that Washington kept creating jobs even as unemployment ticked upward. That combination usually means the labor market is not collapsing; it is adjusting, with more people active in the labor force and sector-level shifts changing the balance (ESD January 2026 news release; BLS Washington EAG).
January 2026 by the numbers
| Metric | Value | Source label |
|---|---|---|
| Unemployment rate | 5.0% | ESD January 2026 news release |
| Job change | +2,800 | ESD January 2026 news release |
| Private sector jobs | +8,200 | ESD January 2026 news release |
| Public sector jobs | -5,400 | ESD January 2026 news release |
| People receiving unemployment benefits | 85,534 | ESD January 2026 news release |
| Unemployed count | 204,366 | BLS Washington EAG |
| Civilian labor force | 4,065.1 thousand | BLS Washington EAG |
| Employment level | 3,860.7 thousand | BLS Washington EAG |
This table shows the basic pattern clearly. Job creation was positive, but it was concentrated in private employers, while public employment pulled in the opposite direction (ESD January 2026 news release). The unemployment rate rose at the same time, which can happen when labor force participation and job search activity expand faster than payroll growth.
Why that matters: if more people are looking for work, unemployment can rise even when employers are still hiring. That makes the jobless rate useful, but incomplete, unless you read it alongside payroll and labor force data (BLS Washington EAG).
Washington unemployment rate and labor force trends
Washington’s unemployment rate moved from 4.4% in January 2025 to 4.9% in December 2025, then to 5.0% in January 2026 (ESD January 2026 news release). That is a modest rise over a year, not a dramatic spike, but it still signals a softer labor market than the state had a year earlier.
The broader labor force numbers help explain the movement:
- January 2026: labor force 4,065.1 thousand, employment 3,860.7 thousand, unemployment 204.4 thousand (BLS Washington EAG).
- February 2026: labor force 4,066.4 thousand, employment 3,858.3 thousand, unemployment 208.1 thousand, unemployment rate 5.1% (BLS Washington EAG).
- March 2026: labor force 4,064.4 thousand, employment 3,855.4 thousand, unemployment 209.0 thousand, unemployment rate 5.1% (BLS Washington EAG).
Three-month labor force snapshot
| Month | Civilian labor force | Employment level | Unemployment level | Unemployment rate | Source label |
|---|---|---|---|---|---|
| January 2026 | 4,065.1 thousand | 3,860.7 thousand | 204.4 thousand | 5.0% | BLS Washington EAG |
| February 2026 | 4,066.4 thousand | 3,858.3 thousand | 208.1 thousand | 5.1% | BLS Washington EAG |
| March 2026 | 4,064.4 thousand | 3,855.4 thousand | 209.0 thousand | 5.1% | BLS Washington EAG |
The labor force itself stayed remarkably stable across those months. What changed more noticeably was the relationship between employment and unemployment. Employment drifted down slightly, while the number of unemployed workers crept upward (BLS Washington EAG).
That is important because it suggests the state was not dealing with a labor force collapse. Instead, the January-to-March pattern looks more like a modest cooling, where employment growth was not quite keeping pace with labor market participation.
Stat callout: Washington’s unemployed count moved from 198,168 in December 2025 to 204,366 in January 2026 (BLS Washington EAG). That single-month increase is one of the clearest signs in the dataset that unemployment pressure was building.
Industry breakdown for Washington employment
Washington’s industry data gives the most useful picture of where job growth was coming from and where it was not. The state had 3,639.3 thousand total nonfarm jobs in January 2026, 3,637.2 thousand in February 2026, and 3,638.0 thousand in March 2026 (BLS Washington EAG).
At the same time, total nonfarm employment was up 0.1% year over year in January 2026, 0.2% in February 2026, and 0.3% in March 2026 (BLS Washington EAG). That steady positive growth rate matters more than the small month-to-month moves, because it points to gradual expansion rather than a volatile rebound.
Selected sector snapshot
| Sector | March 2026 employment | Year-over-year change | Source label |
|---|---|---|---|
| Mining and logging | 5.1 thousand | not provided | BLS Washington EAG |
| Construction | 218.9 thousand | -0.1% | BLS Washington EAG |
| Manufacturing | 271.7 thousand | -0.4% | BLS Washington EAG |
| Trade, transportation, and utilities | 624.0 thousand | +0.3% | BLS Washington EAG |
| Information | 163.5 thousand | -0.1% | BLS Washington EAG |
| Financial activities | 159.4 thousand | -1.6% | BLS Washington EAG |
| Professional and business services | 545.5 thousand | +1.2% | BLS Washington EAG |
| Education and health services | 570.7 thousand | +2.0% | BLS Washington EAG |
| Leisure and hospitality | 345.1 thousand | +0.5% | BLS Washington EAG |
| Other services | 123.1 thousand | -0.3% | BLS Washington EAG |
| Government | 611.0 thousand | -1.3% | BLS Washington EAG |
A few patterns stand out:
- Education and health services was one of the strongest large sectors, with 570.7 thousand jobs and 2.0% year-over-year growth in March 2026 (BLS Washington EAG).
- Professional and business services also expanded, reaching 545.5 thousand jobs and growing 1.2% year over year (BLS Washington EAG).
- Financial activities was weaker, down 1.6% year over year to 159.4 thousand jobs (BLS Washington EAG).
- Government employment was still sizable at 611.0 thousand, but it was down 1.3% year over year (BLS Washington EAG).
- Construction and manufacturing both remained large employers, but each posted a year-over-year decline in March 2026 (BLS Washington EAG).
What the sector mix suggests
Washington’s labor market is still being supported by service-side hiring, especially in education and health services plus professional and business services (BLS Washington EAG). That matters because those sectors can offset weakness in more cyclical or policy-sensitive areas such as government, construction, and manufacturing.
The mixed sector picture also helps explain why the state could add jobs overall while unemployment increased. The gains were broad enough to keep payroll growth positive, but not broad or strong enough to fully absorb a growing labor force or offset weaker sectors.
Washington labor underutilization in 2025
Unemployment is only one part of labor market strain. Washington’s alternative measures of labor underutilization show that broader slack was still present in 2025 (BLS alternative measures of labor underutilization).
Core underutilization measures
- Washington’s U-4 labor underutilization rate was 5.2% in 2025 (BLS alternative measures of labor underutilization).
- Washington’s U-5 labor underutilization rate was 5.8% in 2025 (BLS alternative measures of labor underutilization).
- Washington had 37,600 marginally attached workers in 2025 (BLS alternative measures of labor underutilization).
- Washington had 10,400 discouraged workers in 2025 (BLS alternative measures of labor underutilization).
- Washington had 137,100 workers employed part time for economic reasons in 2025 (BLS alternative measures of labor underutilization).
These numbers matter because they widen the lens beyond the official unemployment rate. Someone can be underemployed, marginally attached, or working part time for economic reasons without appearing in the simple unemployment rate alone (BLS alternative measures of labor underutilization).
Reading the broader slack indicators
Key takeaway: Washington’s 2025 labor underutilization data suggests the state still had a meaningful amount of hidden slack even before the January 2026 unemployment uptick (BLS alternative measures of labor underutilization).
A few practical interpretations follow from the numbers:
- A U-5 rate of 5.8% means the broader labor market picture is worse than the headline unemployment rate alone would imply (BLS alternative measures of labor underutilization).
- The count of 137,100 part-time for economic reasons is especially important because it points to workers who want more hours or full-time work but cannot get it (BLS alternative measures of labor underutilization).
- 37,600 marginally attached workers and 10,400 discouraged workers show that labor market attachment was not perfect, even with a large labor force (BLS alternative measures of labor underutilization).
County labor market snapshots
The statewide figures make more sense when you compare them with county-level profiles. The county data in this dataset gives two useful examples: Jefferson County and Asotin County (Jefferson County profile; Asotin County profile).
Jefferson County profile
Jefferson County had a 5.3% unemployment rate in March 2025, down from 6.1% in March 2024 and 6.7% in February 2025 (Jefferson County profile). That is a notable improvement over the prior year, even though the county still had a relatively elevated unemployment rate compared with its own recent history.
Other Jefferson County figures include:
- Labor force: 11,720 workers in March 2025, down 431 workers year over year (Jefferson County profile).
- Average annual covered employment: 8,968 in 2023 (Jefferson County profile).
- Average annual wage: $54,891 in 2023 (Jefferson County profile).
- Residents age 16 and over: 29,896, with a labor force participation rate of 43.3% and unemployment rate of 7.7% (Jefferson County profile).
Jefferson County age breakdown
| Age group | Population | Labor force participation rate | Unemployment rate | Source label |
|---|---|---|---|---|
| 16 to 19 | 719 | 44.9% | 20.9% | Jefferson County profile |
| 20 to 24 | 943 | 78.3% | 25.6% | Jefferson County profile |
| 25 to 29 | 1,334 | 75.0% | 3.0% | Jefferson County profile |
| 30 to 34 | 1,570 | 77.5% | 5.8% | Jefferson County profile |
| 35 to 44 | 3,156 | 73.9% | 6.9% | Jefferson County profile |
| 45 to 54 | 3,297 | 72.1% | 8.4% | Jefferson County profile |
| 55 to 59 | 2,602 | 64.7% | 8.2% | Jefferson County profile |
| 60 to 64 | 3,094 | 46.5% | 7.6% | Jefferson County profile |
| 65 to 74 | 8,080 | 19.3% | 1.7% | Jefferson County profile |
| 75 and over | 5,101 | 5.3% | 0.0% | Jefferson County profile |
This age table shows how quickly labor force participation and unemployment vary by age. Younger residents in Jefferson County had much higher unemployment rates, while older groups had lower participation and, in some cases, very low unemployment rates (Jefferson County profile).
Jefferson County also provides a gender snapshot:
- Male residents numbered 7,899, with labor force participation of 68.5% and unemployment of 9.1% (Jefferson County profile).
- Female residents numbered 8,097, with labor force participation of 66.4% and unemployment of 7.6% (Jefferson County profile).
- Females with own children under 18 numbered 2,161, with labor force participation of 63.5% and unemployment of 8.6% (Jefferson County profile).
Asotin County profile
Asotin County offers a different labor market profile, with a smaller labor force and lower unemployment rate in June 2025.
- Labor force: over 9,629 people in June 2025 (Asotin County profile).
- Labor force decreased by 290 workers, or 2.9%, from June 2024 to June 2025 (Asotin County profile).
- Employed workforce decreased by 237 workers, or 2.5%, year over year (Asotin County profile).
- Unemployed workforce decreased by 53 workers, or 16.8%, year over year (Asotin County profile).
- Unemployment rate: 2.7% in June 2025 (Asotin County profile).
- Total nonfarm employment: 7,300 jobs in June 2025 (Asotin County profile).
- Private sector lost 80 jobs, or 1.3%, year over year (Asotin County profile).
- Government employment increased by 40 jobs, or 3.1%, year over year (Asotin County profile).
- Average annual covered employment: 6,892 in 2023 (Asotin County profile).
- Average annual wage: $51,432 in 2023 (Asotin County profile).
Skamania County profile
Skamania County shows yet another pattern: falling labor force, rising unemployment rate, and modest job growth in total nonfarm employment.
- Labor force: over 5,870 people in February 2025 (Skamania County profile).
- Labor force decreased by 234 workers, or 3.8%, from February 2024 to February 2025 (Skamania County profile).
- Employed workforce decreased by 241 workers, or 4.2%, year over year (Skamania County profile).
- Unemployed workforce increased by 7 workers, or 2.0%, year over year (Skamania County profile).
- Unemployment rate: 6.1% in February 2025 (Skamania County profile).
- Total nonfarm employment: 2,200 jobs in February 2025 (Skamania County profile).
- Total nonfarm employment rose by 20 jobs, or 0.9%, from January to February 2025 (Skamania County profile).
- Private sector employment totaled 1,540 jobs in February 2025 (Skamania County profile).
- Private sector employment rose by 80 jobs, or 5.5%, year over year (Skamania County profile).
- Average annual wage: $50,470 in 2023 (Skamania County profile).
These county profiles show that statewide labor conditions do not look the same everywhere. Some counties are seeing lower unemployment with shrinking labor forces, while others have weaker participation or more uneven job trends (Jefferson County profile; Asotin County profile; Skamania County profile).
What the Washington labor market statistics show
Washington’s labor market statistics point to a state that is still growing, but not without strain. Jobs were added in January 2026, private employment outperformed public employment, and year-over-year nonfarm employment remained positive through March 2026 (ESD January 2026 news release; BLS Washington EAG).
At the same time, the unemployment rate rose from 4.4% in January 2025 to 5.0% in January 2026, then held at 5.1% in February and March 2026 (ESD January 2026 news release; BLS Washington EAG). That is the kind of pattern that tells you to watch both job growth and labor force behavior, not just the headline rate.
The strongest single-sector signals in the dataset came from education and health services, professional and business services, and parts of the broader service economy (BLS Washington EAG). The weakest signals came from financial activities, government, manufacturing, and some other smaller categories (BLS Washington EAG).
The broader underutilization numbers from 2025 reinforce that the state still had slack beneath the surface, especially through part-time workers seeking more hours and marginally attached workers on the edge of the labor force (BLS alternative measures of labor underutilization).