Story Published:
Oct 19, 2004 at 11:36 AM PST
Story Updated:
Aug 31, 2006 at 1:35 AM PST
OLYMPIA - Washington state's unemployment rate
dropped dramatically in September to 5.6 percent, the lowest rate
in nearly four years.
Economists are split on the significance of the sharp decline.
Some say it's good news, indicating the state's continuing economic
recovery. Some say it's just a statistical quirk hiding essentially
flat employment. Others say it might be a little bit of both.
The 5.6 percent seasonally adjusted jobless rate, announced
Tuesday, puts Washington within striking distance of the national
unemployment rate, which held steady at 5.4 percent in September.
Washington hasn't been that close to the national unemployment rate
since June 1998.
The national rate is usually lower than the state jobless rate,
which has hovered above 6 percent for most of the year.
State economists credit fall education hiring and a strong apple
harvest with most of the improvement.
"The recovery is starting to take hold a bit more, and we're
starting to put the recession a little bit more in the rear view
mirror," said Greg Weeks with the state Employment Security
Department.
Employment Security Commissioner Sylvia Mundy said the decline
is good news, but cautioned that weakness in the air transportation
industry and oil price increases mean Washington's recovery will
continue at a slow pace.
Weeks cautioned that unemployment numbers aren't an exact
science: "It may be we're overstating it a little bit."
The state bases unemployment numbers on a sample of 1,350
households. Roberta Pauer, Seattle economist for the Employment
Security Department, said the small sample size may have skewed the
results.
"The sample has captured some unusual folks by chance and has
temporarily pulled the unemployment rate estimate down sharply,"
Pauer said Tuesday. "The job growth that the state and Seattle
have had during our 15-month recovery has plateaued in the last two
months."
No private-sector industries posted any significant job gains in
September, Pauer noted. Education hiring and the apple harvest
might bump the jobless rate down by a tenth of a percent or two,
Pauer said, but they don't explain such a dramatic decline.
So is the lower unemployment rate a statistical quirk or a
genuine sign of improvement? Could be a little bit of both, said
economist Dick Conway, co-publisher of The Puget Sound Economic
Forecaster.
"I'm surprised by the number, because you typically don't see a
drop like that," Conway said. "On the other hand, the state has
been creating quite a few jobs in the past year and we would expect
a drop in the unemployment rate."
Because the sample size is small, Conway said he looks
skeptically at the monthly unemployment numbers. But he noted the
number of jobs in Washington has grown about 2 percent over the
past year - and the seasonally adjusted unemployment rate has
declined accordingly, from 7.7 percent in September 2003 to 5.6
percent last month.
"In the long run, it's about what you would expect under the
circumstances," Conway said.
Unemployment declined across the state, in both rural and urban
areas. The lowest jobless rate was in Garfield County, at 1.5
percent. The highest was in Ferry County, at 8.4 percent.
Oregon's jobless rate, meanwhile, remained essentially stagnant
in September at 7.3 percent.