Payroll Numbers and Unemployment Both Up in July

OLYMPIA, WA-Washington State’s employment increased significantly in July but was offset by an influx of unemployed people who officially began looking for work again, hoping to snag one of the jobs, according to the state employment security department. As a result, despite a record 12,800 people being added to payrolls during the month, the unemployment rate rose from 5.5% in June to 5.7% by the end of July while the national unemployment rate held steady at 5%.The spike in nonfarm employment was the largest monthly addition since August 2000 and employment security commissioner Karen Lee says the corresponding jump in people looking for work is actually good thing. “This is the most impressive employment report we’ve had in quite some time,” Lee says. “We’ve now seen two straight months of extraordinary job gains, and healthy labor force growth provides Washington’s economy with room to expand.”The department’s chief economist Rick Kaglic adds that job growth in July was broad-based across industry segments as it was in June. The biggest increases (on a seasonally adjusted basis) came in government, construction, wholesale and retail trade, and information services. Manufacturing employment was up again in July, even as manufacturing employment nationwide continued to decline, Kaglic says.”This is a terrific report,” he concludes. “Robust economic activity statewide, as well as in the rest of the nation, is boosting demand for workers in Washington leading to extraordinary job gains. In addition, labor supply is expanding to meet that increased demand, helping to ensure that employers will be able to fill open positions.”Since last July, employment in Washington increased 67,300, or 2.5%, according to annually benchmarked data. This compares to a nationwide increase of 1.6%. Quarterly benchmarked data, which utilizes more current employer data, shows an even stronger gain in the state from last July, 80,300 or 3%.