OLYMPIA—Washington’s economy decreased by an estimated 14,500 jobs (seasonally adjusted) in September 2025, and the monthly unemployment rate remained at 4.5%.
September employment numbers were delayed because of the six-week federal government shutdown, which took place October 1 to November 12, 2025. The U.S. Bureau of Labor Statistics did not collect October employment information during the shutdown. Employment Security’s November 2025 report is scheduled for release in early January 2026.
“Job growth in September disappointed for the second consecutive month, pointing to a weakening labor market,” said Paul Turek, labor economist at the Employment Security Department. “More major industries shed jobs than gained during the month, although the unemployment rate remains stable for now.”
From September 2024 to September 2025, number of jobs in Washington went down by 27,400 jobs – a 0.2% decrease. See the total jobs chart in this news release for detailed information.
In September, employers in the private sector collectively lost 20,400 jobs, while the public sector shed an estimated 7,000 jobs over the month. The largest one-month sector-level gains in private industry were in education and health services (up 10,300), warehousing and utilities (up 2,100), and leisure and hospitality (up 2,000).
Employment Security paid unemployment benefits to 59,115 people in September, a decrease of 3,259 from the previous month. Decreases in paid claims in health care and social assistance, transportation and warehousing, and accommodation and food services contributed to the month over month decrease.
Labor force showed little change
From August 2025 to September 2025, the number of people who were unemployed statewide increased from 180,200 to 181,900. In the Seattle/Bellevue/Everett region, the number of people who were unemployed increased from 100,400 to 101,500 during the same time.
The state’s labor force in September was 4,029,000 – an increase of 7,000 people from the previous month. In the Seattle/Bellevue/Everett region, the labor force decreased by 3,900 people during the same period.
Labor force is defined as the number of employed and unemployed people over the age of 16. Layoffs and labor force participation are not necessarily connected. When people are laid off but still seeking work, they remain a part of the labor force. A drop in the labor force means people have left work and haven’t been seeking employment for more than four weeks.
Four major industry sectors expanded, nine contracted over the year
Private sector employment decreased by 20,400 jobs from September 2024 to September 2025. Government employment decreased by 7,000 during the same time.
The largest sector-level gains in private industry were in education and health services (up 10,300 jobs); transportation, warehousing and utilities (up 2,100); and leisure and hospitality (up 2,080).
- Education and health services employment gains were primarily due to hiring in health and social services. Within that sector, social assistance added the most jobs (5,000).
- The deepest one-year sector losses were observed in professional and business services (down 17,400) and government (down 7,000).
- Losses in professional and business services were concentrated in industries making up administrative and support services (down 12,900), with the largest drop evident in employment services.
Annual employment in public and private industries
Washington businesses shed an estimated 27,400 jobs from September 2024 to September 2025 (not seasonally adjusted). During that time, private sector employment decreased by 0.7%, or 20,400 jobs. Public sector employment decreased 1.2%, or an estimated decrease of 7,000 jobs.
The three private industry sectors with the largest employment gains compared with the same period last year (not seasonally adjusted) were:
- Education and health services, up 10,300 jobs.
- Transportation, warehousing and utilities, up 2,100 jobs.
- Leisure and hospitality, up 2,000 jobs.
Professional and business services showed the biggest employment loss compared with the same period last year (not seasonally adjusted). It contracted by 17,400.
Source: Employment Security Department
Author: Lynnwood Times Staff
