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Using monthly economic data from March to June 2026, 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 and nonfarm employment information.
Here are some key highlights of current labor market conditions in Washington state:
- The statewide unemployment rate increased from 5.1% to 5.2% in April 2026 and held steady at 5.2% through June 2026.
- Washington employers collectively added 11,100 jobs during the second quarter of 2026 and shed 1,200 jobs over the year. Washington’s labor market could be described as a low hire / low fire market.
- The leisure and hospitality sector led employment growth in the second quarter. Growth occurred in May and June and was likely connected to World Cup-related tourism.
- The Economic and Revenue Forecast Council revised employment growth down in June. Employment growth in 2026 is expected to be around 0.1%.
- New projections published by ESD predict an environment of continued low employment growth.
The Economic and Revenue Forecast Council revised its employment expectations in the June forecast down from the February forecast, noting that both near-term growth rates and employment levels were revised downward. Washington employment is now expected to increase 0.1% in 2026, compared to the previous projection of 0.4%.
The labor force participation rate, or the proportion of age-eligible population in the labor force, in June 2026 was estimated at 62.3%. Labor force participation increased briefly from 2015 to 2020, dropped during the pandemic, then has expanded slightly from 2021 to 2023. Since 2023, the labor force participation rate has gradually declined. According to the BLS, the labor force participation rate has not been this low since November 1976.
Read the full quarterly report on the ESD website.