Payroll employment increased in December, unemployment rate rose to 4.2%

OLYMPIA — Washington’s economy gained an estimated 7,700 jobs (seasonally adjusted) and the monthly unemployment rate rose from 4.0% to 4.2% in December, according to an announcement from the Washington State Employment Security Department.

“December’s job growth was the strongest since June 2023 and marked five consecutive months of job growth, after revisions to November data. Despite strong job gains, the unemployment rate inched up from 4.0% to 4.2%,” ESD Chief Labor Economist Anneliese Vance-Sherman said. “The overall trend in 2023 has been the slowing of a still-strong labor market after the tumultuous ups and downs of COVID-19 economic recovery.”

ESD paid unemployment insurance benefits to 68,170 people in December, an increase of 6,344 paid claims over the previous month, according to the statement. Seasonal increases in paid claims within agriculture, construction and manufacturing contributed to the overall increase in claims.

The announcement stated the national unemployment rate remained constant at 3.7% in December. For comparison, the national unemployment rate (revised) for December 2022 was 3.5%. Washington’s labor force in December numbered 4,059,627 – an increase of 1,907 people from the previous month. Labor force is defined as the total number of people, both employed and unemployed, over the age of 16. 

The statement also said from November to December 2023, the number of people who were unemployed statewide increased from 161,573 to 170,380.

Visit www.esd.wa.gov to view the entire Monthly Employment Report for December.