Why manufacturing recovery lags in Washington
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Washington's manufacturing sector, particularly aerospace, is still struggling to recover pre-pandemic job levels, lagging behind the national trend.
Why it matters: Washington saw the steepest drop in manufacturing jobs in the nation in recent years, per a new analysis of government data by the Economic Innovation Group (EIG).
- Boeing's pandemic-related setbacks, compounded by earlier production issues, continue to weigh heavily on the state's economy and job recovery.
The big picture: Manufacturing jobs are back across much of the U.S., especially in the Sun Belt, where employment in the sector is now slightly above pre-pandemic levels,
- For the first time since the 1970s, the U.S. manufacturing industry has recovered all the jobs lost during a recession, but it's been uneven and rather concentrated.
- Just five states accounted for two-thirds of the sector's job growth: Texas, Florida, Georgia, Arizona and Utah.
- Transportation and food accounted for much of the growth. Another bright spot was electronics, spurred on by the Biden administration's efforts to bolster domestic chip making.
By the numbers: Meanwhile, Washington lost 6.7% of its manufacturing workforce — more than 19,000 jobs — between 2019 and 2023, per EIG.
- The manufacturing workforce in the Seattle metro area dropped from roughly 183,000 in 2019 to about 163,000 in 2023, an 11% decline, according to EIG.
- In Washington, the aerospace manufacturing workforce, which is largely concentrated in the Seattle area, was down 8% in September 2023 compared with February 2020, according to Anneliese Vance-Sherman, the chief labor economist for the Washington Employment Security Department (ESD).
Zoom in: Aerospace manufacturing is a critical component of Washington's economy, representing over 30% of the state's manufacturing jobs, Vance-Sherman tells Axios.
- Boeing, a central player, has faced a litany of problems in recent years, including the grounding of the 737 MAX following crashes in 2018 and 2019 that killed 346 people.
- The company laid off about 30,000 people in 2020.
The latest: Boeing's recovery has been further disrupted by an ongoing machinists' strike.
State of play: The state has made strides in other manufacturing subsectors: Food and wood products have shown growth, increasing by 1% and 6.3%, respectively, since the pandemic, according to ESD.
What's next: Washington is investing in specialized training programs through technical colleges and community partnerships aimed at preparing workers for diverse manufacturing roles, reducing reliance on aerospace and building a more resilient manufacturing base, per Vance-Sherman.