OLYMPIA — Washington’s seasonally adjusted unemployment rate fell to 5.0% in July from 5.2% in June, while the state added an estimated 21,100 nonfarm jobs, the Employment Security Department reported.
“July marks a third consecutive month of job growth statewide,” said Anneliese Vance-Sherman, chief labor economist for the department. “Private sector job growth was widespread, with the largest gains showing in the service economy.”
This now marks the third consecutive month of job growth and the largest monthly increase since 2024. Private-sector employment rose by 22,500 jobs, offsetting a 1,400-job decline in the public sector.
From July 2025 to July 2026, total nonfarm employment increased by 16,100 jobs, or 0.4%. Over the three months from May through July, seasonally adjusted payrolls rose by a combined 40,500 jobs, according to revised figures showing gains of 10,000 in May and 9,400 in June.
Eleven of 13 major industry sectors expanded in July. The largest private-sector gains were in education and health services, up 7,300 jobs; leisure and hospitality, up 2,700; and retail trade and professional and business services, each up 2,500. Manufacturing added 2,200 jobs and construction 1,900.
Within education and health services, health care and social assistance accounted for most of the increase, with ambulatory health care services up 1,900 and social assistance up 1,300. Leisure and hospitality gains were concentrated in food services and drinking places, up 2,300.
Government employment fell by 1,400 jobs, with losses at the federal level of 700), state level of 600 and local at 600. Mining and logging lost 100 jobs.
The number of unemployed Washington residents declined by 6,530 to 202,908 in July. The statewide labor force stood at 4,048,435, down 2,196 from July 2025. In the Seattle-Tacoma-Bellevue area, unemployment fell from 120,295 to 117,019, with the regional rate easing to 5.1% from 5.2%.
Employment Security paid unemployment benefits to 61,013 people in July, a decrease of 129 from the prior month. Declines in claims were concentrated in construction, accommodation and food services, and transportation and warehousing.
Nationally, the unemployment rate edged down to 4.1% in July from 4.2% in June. The national rate in July 2025 was 4.3%. Washington’s July 2025 unemployment rate was 4.6%.
Author: Lynnwood Times Staff
