Washington state unemployment rate increases slightly to 4.5%

OLYMPIA – Washington’s economy increased by an estimated 400 jobs (seasonally adjusted) in May 2025, and the monthly unemployment rate increased slightly to 4.5%.  

“The Washington economy picked up 400 jobs in May – a slight increase following three consecutive months of net job losses. Total nonfarm employment in May 2025 was down relative to May 2024. Job growth has effectively stalled,” said Anneliese Vance-Sherman, chief labor economist at the Employment Security Department.  

She added, “The number of unemployed workers increased enough, and the size of the labor force decreased enough, in May to bump the unemployment rate from 4.4% to 4.5%.” 

In the past 12 months, the state lost 9,000 jobs — a 0.3% decrease. See the total jobs chart in this news release for detailed information.  

In May, new employment data shows nonfarm employment increased by 3,100 jobs and government employment decreased by 2,700. The largest one-month sector level gains in private industry were in education and health services (up 2,700), and construction (up 1,600) and wholesale trade (up 900).    

Employment Security paid unemployment benefits to 65,397 people in May, a decrease of 3,462 over the previous month. Decreases in paid claims in construction, agriculture, and transportation and warehousing contributed to the lower number. 

Learn more about Employment Security's monthly employment reports 

Every month, the Employment Security Department publishes preliminary seasonally adjusted estimates for the previous month’s job changes and unemployment. The agency also publishes confirmed data for the month before last. Find the entire Monthly Employment Report, publication schedule, and more labor market information and tools on the Employment Security website.  

April 2025 revisions 

• The estimated loss of 5,800 jobs was revised to a loss of 5,600 jobs. 
• The seasonally adjusted monthly unemployment remained at 4.4%. 

National unemployment rate 

The national unemployment rate remained steady at 4.2% from April 2025 to May 2025. For comparison, the national unemployment rate (revised) for May 2024 was 4.0%. 

Labor force showed little change 

From April 2025 to May 2025, the number of people who were unemployed statewide increased from 178,953 to 181,214. In the Seattle/Bellevue/Everett region, the number of people who were unemployed increased from 101,266 to 102,909 during the same period. 

The state’s labor force in May was 4,042,228 – a decrease of 9,838 people from the previous month. In the Seattle/Bellevue/Everett region, the labor force decreased by 5,775 people during the same period. 

Labor force is defined as the number of employed and unemployed people over the age of 16. Layoffs and labor force participation are not necessarily connected. When people are laid off but still seeking work, they remain a part of the labor force. A drop in the labor force means people have left work and haven't been seeking employment for more than four weeks. 

Five major industry sectors expanded, eight contracted over the year 

Private sector employment decreased by 7,600 jobs from May 2024 to May 2025. Government employment decreased by 1,400 during the same time. 

The largest sector-level gains in private industry were in education and health services (up 12,300 jobs); transportation, warehousing and utilities (up 2,600) and wholesale trade (up 2,300).  

• Education and health services employment gains were primarily attributable to hiring in health and social services. Within that sector, social assistance added the most jobs (6,100). 
• The deepest one-year sector losses were observed in leisure and hospitality (down 7,000) and manufacturing (down 6,900).   
• Losses in leisure and hospitality were predominately attributable to restaurants and bars (down 4,900).   

Annual employment growth appears in public and private industries 

Washington businesses shed an estimated 9,000 jobs from May 2024 to May 2025 (not seasonally adjusted). During that time, private sector employment decreased by 0.3%, or 7,600 jobs. Public sector employment decreased 0.2%, or an estimated decrease of 1,400 jobs. 

The two private industry sectors with the largest employment gains compared with the same period last year (not seasonally adjusted) were: 

• Education and health services, up 12,300 jobs. 
• Transportation, warehousing and utilities, up 2,600 jobs. 

Leisure and hospitality showed the biggest employment loss compared with the same period last year (not seasonally adjusted). It contracted by 7,000.  

Table 1: Washington's total jobs (12-month overview)

*Revised from previous preliminary estimates. Preliminary monthly estimates for job losses or gains are based on a small Bureau of Labor Statistics payroll survey. Actual figures reported the following month are based on a more complete survey.

Table 2: May job gains and losses by industry