Washington state unemployment rate remains at 4.5%

OLYMPIA – Washington’s economy increased by an estimated 10,800 jobs (seasonally adjusted) in July 2025, and the monthly unemployment rate held steady at 4.5%.  

“After a slow start to 2025, job growth in June and July brought the Washington employment landscape back to the overall story of continuing - but slowing – growth,” said Anneliese Vance-Sherman, chief labor economist at the Employment Security Department. “Washington businesses added 10,800 jobs in July and the unemployment rate held steady at 4.5%.”  

In the past 12 months, the state gained 4,800 jobs — a 0.1% increase. See the total jobs chart in this news release for detailed information. 

In July, employers in the private sector collectively added 11,700 jobs while the public sector shed an estimated 900 jobs over the month. The largest one-month sector-level gains in private industry were in leisure and hospitality (up 4,300), transportation, warehousing and utilities (up 2,600), manufacturing (up 2,100).    

Employment Security paid unemployment benefits to 64,181 people in July, an increase of 1,875 over the previous month. Increases in paid claims in educational services, health care and social assistance, and information contributed to the higher 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. 

June 2025 revisions 

• The estimated increase of 10,900 jobs was revised to an increase of 12,700 jobs. 
• The seasonally adjusted monthly unemployment remained at 4.5%. 

National unemployment rate 

The national unemployment rate increased from 4.1% in June 2025 to 4.2% in July 2025. For comparison, the national unemployment rate (revised) for July 2024 was 4.2%. 

Labor force showed little change 

From June 2025 to July 2025, the number of people who were unemployed statewide increased from 180,500 to 181,000. In the Seattle/Bellevue/Everett region, the number of people who were unemployed decreased from 102,000 to 101,000 during the same period.  

The state’s labor force in July was 4,024,900 – a decrease of 8,300 people from the previous month. In the Seattle/Bellevue/Everett region, the labor force decreased by 8,900 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. 

Six major industry sectors expanded, seven contracted over the year 

Private sector employment increased by 9,900 jobs from July 2024 to July 2025. Government employment decreased by 500 during the same time.

The largest sector-level gains in private industry were in education and health services (up 16,600 jobs); transportation, warehousing and utilities (up 8,200) and information (up 4,100).  

• 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 (4,900). 
• The deepest one-year sector losses were observed in construction (down 11,300) and manufacturing (down 3,000). 
• Losses in construction were predominately attributable to specialty trade contractors (down 9,200).   

Annual employment growth appears in public and private industries 

Washington businesses added an estimated 4,800 jobs from July 2024 to July 2025 (not seasonally adjusted). During that time, private sector employment increased by 0.3%, or 9,900 jobs. Public sector employment decreased 0.8%, or an estimated decrease of 5,100 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 16,600 jobs. 
• Transportation, warehousing and utilities, up 8,200 jobs. 

Construction showed the biggest employment loss compared with the same period last year (not seasonally adjusted). It contracted by 11,300.  

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: July job gains and losses by industry