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Anneliese Vance-Sherman, Chief Labor Economist
Using monthly economic data from January to March 2025, the Employment Security Department is providing a quarterly look at the Washington labor market. This quarterly report includes current labor market conditions, unemployment insurance claims, nonfarm employment information, and a spotlight on industries with high proportions of immigrant labor.
Here are some key highlights of current labor market conditions in Washington state:
- The unemployment rate remained in the mid-four percent range during the first three months of 2025. The statewide unemployment rate in March 2025 was 4.4%.
- Nonfarm employment has been slowing over the past couple years. The first quarter of 2025 marked three consecutive months of declining employment levels.
- Washington employers collectively shed 12,400 jobs during the first quarter of 2025.
- Federal workers make up about 2% of total employment in Washington – like the national average. So far in 2025, unemployment insurance claims by federal workers are up 71% over last year.
The Economic and Revenue Forecast Council estimated in its March forecast that the unemployment rate will remain in the mid- to high-4% range for the next few years. The March 2025 forecast estimates that the average annual unemployment rate for Washington will be 4.5% in 2025, rising to 4.7% in 2026 and 2027 before dropping to 4.6% in 2028 and 4.4% in 2029. The unemployment rate forecast in March was lower than reported in the November 2024 forecast.
The labor force participation rate, or the proportion of age-eligible population in the labor force, in March 2025 was estimated at 62.9% and has been declining slowly over the past several months. The labor force participation rate 12 months ago was 63.7%.
Read the full quarterly report here: First Quarter 2025 Washington Labor Market Briefing.