Unfortunately, our monthly report is always delayed given that Washington State data always comes out close to a month after the US numbers…..but here’s our report on what’s happening in the labor market as we head into the fall. In the big picture, the watchword around jobs, particularly in Washington State, is not that great. We keep seeing indicators that the marketplace is cooling, that hiring is cautious, and that increased levels of volatility still have a foothold in both the local and national jobs front.
Here’s the data we think is most important for you to know about…..
First, a quick refresher on what happened in July….
- U.S. employers added 73,000 jobs and the unemployment rate rose to 4.2 %.
- Washington added 10,800 jobs with the unemployment rate holding at 4.5 %. (The private sector gained 11,700 jobs which was offset by a loss of 900 public sector jobs.)
In August 2025…
- The U.S job market grew by 22,000 jobs — a noticeably slower pace compared to earlier months with unemployment climbing to 4.3 %
- Health care was a bright spot, adding ~31,000 jobs.
- Federal government employment declined by ~15,000
- Mining and extraction shed ~6,000 jobs, while wholesale trade slipped ~12,000.
- Manufacturing (our economic bellweather sector) showed little net change (–12,000), continuing a year-over-year decline.
- The Washington State data paints a much more cautious story. We actually lost close to 13,600 jobs in August, as the unemployment rate held at 4.5 %.
- Over the year, Washington is down ~5,400 jobs — a net decrease of ~0.1 %.
- The largest private industry gains were in education & health services with significant losses reported in leisure & hospitality, manufacturing, and professional & business services
The BIGGEST TAKEAWAY – Washington’s labor market appears to be cooling more sharply than the national average, with hints of increased headwinds given the job losses in August. We still think staffing flexibility needs to be a high priority for Washington employers.
CAUTION – Keep in mind that at the national level prior month’s job numbers are consistently being revised downward and have been since 2023. We’re looking forward to some revisions in reporting methodologies in the months to follow.