Why It Matters
Washington state’s labor market posted its strongest monthly gain in five months during May, but an unemployment rate well above the national average signals ongoing economic strain — a backdrop that will shape the state’s upcoming revenue forecast and budget deliberations.
What Happened
Washington employers added 10,600 seasonally adjusted jobs in May, the largest single-month gain since December 2025, when the state posted 10,100 new positions. Despite the rebound, the state unemployment rate remained unchanged at 5.2%, the same figure recorded in April.
The May gains partially offset a rough stretch earlier this year. Washington shed a combined 8,700 jobs across March and April, meaning the state is still down 7,700 jobs — roughly 0.2% — compared to May 2025.
Leisure and hospitality led all sectors with 4,800 new positions. Manufacturing followed with 2,200 jobs, while construction and the public sector each added 1,600 jobs.
Anneliese Vance-Sherman, chief labor economist at the Employment Security Department, welcomed the rebound but cautioned against reading too much into a single data point. “A strong month of growth is welcome following two consecutive months of employment losses, but it doesn’t signal any meaningful shifts on its own,” she said.
By the Numbers
5.2% — Washington’s unemployment rate in May, unchanged from April and up from 4.5% a year earlier.
4.3% — National unemployment rate in May, nearly a full percentage point below Washington’s figure.
10,600 — Jobs added in May, comparable to the 10,500 gained in May 2025.
5,972 — Initial unemployment claims filed for the week ending June 6, up from 5,006 the prior week.
June 26 — Date of the state’s next revenue forecast, which will inform budget planning.
Zoom Out
Washington’s 5.2% unemployment rate stands notably higher than the national average of 4.3%, a gap that has widened over the past year. The state’s year-over-year job decline of 0.2% puts it at odds with national employment trends, which have remained more resilient. States with high concentrations of technology and trade-dependent manufacturing have faced similar pressures as federal policy shifts and global supply chain adjustments ripple through regional economies.
The rise in weekly unemployment claims — nearly 1,000 more filers in the most recent week than the week prior — adds a cautionary note to the otherwise positive May headline figure.
What’s Next
The state’s official revenue forecast, due June 26, will provide a clearer picture of Washington’s fiscal trajectory. That report carries added weight given that the state is already contending with its third consecutive budget deficit, with agencies placed on notice to prepare for potential cuts. The labor market’s mixed signals — a strong May rebound against a backdrop of year-over-year job losses and an elevated unemployment rate — are likely to factor into both the forecast and broader debates over the state’s tax and spending policies.