Washington unemployment dips but layoffs loom
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Washington's unemployment rate ticked down slightly in January, according to the latest jobs report, but the state is bracing for an impact from potential federal job cuts.
Why it matters: Economic uncertainty fueled by inflation worries and political headwinds at the national level could have more businesses hitting a hiring pause.
By the numbers: The state's unemployment rate fell to 4.3% in January, down from 4.4% in December and 4.6% a year ago.
- But job growth has stalled, with Washington losing 1,100 non-farm jobs in January, according to the Employment Security Department (ESD) analysis released last week.
- Among the job losses, 400 were in the private sector and 700 in the public sector.
Yes, but: New jobs were added in professional and business services, education, transportation and other sectors, per the report.
What we're watching: Federal layoffs began to show up in February, Anneliese Vance-Sherman, ESD's chief labor economist, told Axios.
- That means that the earliest the state expects to see any shifts in federal government employment is with the March report, which will be published in April.
- Federal judges in California and Maryland ordered six agencies to reinstate fired probationary workers last week, marking another twist in the ongoing battle over the dismissal of at least 30,000 federal employees.