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Seattle jobless rate keeps climbing
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Seattle's unemployment rate is higher than the state's — a rare reversal for the region's job market.
The big picture: Seattle's unemployment rate surpassed the state's in November and has continued rising, reaching 5.2% in January versus 5.0% statewide, according to state data shared with Axios.
- The Seattle metro area lost roughly 3,200 jobs over the past year, state Employment Security Department economist Paul Turek said.
- It's an unusual shift, Turek told Axios; the local rate has only exceeded the state's during major economic disruptions like the Great Recession and the pandemic.
State of play: Hiring has been slowing across Washington, Turek said, as it has nationally. According to ESD's January report:
- Private-sector employment statewide rose by 16,700 jobs over the past year, while government jobs fell by 7,600.
- Growth was concentrated in health care (+14,900), transportation and warehousing (+9,000) and leisure and hospitality (+3,400).
- Losses were led by manufacturing (-4,800) and retail (-4,100), with additional declines in professional services, especially administrative support roles.
What's next: The latest data reflects January 2026, not current conditions.
- The Employment Security Department is behind on releases due to federal data disruptions and annual benchmarking.
- Officials plan to release February and March reports later this month to catch up, Turek said.
- Recent layoffs in tech and other sectors are expected to be reflected in coming reports.