Washington labor market shows mixed signals: 3.5 million jobs, unemployment 4.9% and labor force down

Annalise Vance Sherman, the department's chief labor economist, presented same‑day data showing Washington's preliminary employment at about 3,500,000 workers and an estimated average annual wage of $96,378, with sharp variation across industries.

"We just recently released our preliminary estimates of employment by industry ... total employment of about 3,500,000 workers in ... Washington state," Sherman said. She told the committee government, health care and retail were the top three sectors, with accommodation and food services showing the lowest average wages and information the highest (about $290,308).

Sherman described recent monthly revisions: July was revised down by 21,000 jobs, and August showed a net decline of about 900 jobs for the month. She said Washington's unemployment rate decreased to 4.9% (Seattle 4.9%), but cautioned the drop accompanied a decline in the labor force of about 10,000 over the year — a dynamic that can make unemployment changes ambiguous.

The economist highlighted county variation (highest: Wicayakum County 5.9%; lowest: San Juan County 2.4%) and summarized forecasts from the Economic and Revenue Forecast Council that project near‑zero growth for 2026 and restrained growth thereafter.