Thurston County profile

Posted April 2025

Summary

Thurston County is home to Washington’s state capitol of Olympia, and as such, its major employer has historically been state government. While this lessened somewhat during the pandemic, many state agencies are still headquartered in Thurston County. In 2023 government employment was 42,128. Of those, 28,397 were at the state level, about 22% of all employment in the county.  

Other major sectors in Thurston County include health care and social assistance, retail trade, accommodation and food services, and professional, scientific, and technical services.  

Location

Thurston County is in the South Puget Sound region of Washington. Its largest city is the state capitol of Olympia, and it comprises the Olympia-Lacey-Tumwater Metropolitan Statistical Area (MSA). Neighboring counties are Mason County to the north, Pierce to the east, Lewis to the south and Grays Harbor to the west.

Thurston County is part of the Pacific Mountain Workforce Development Area. Visit the Workforce Training & Education Coordinating Board website for information about the 12 workforce regions.

Employment situation for February 2025

Labor force and unemployment

• The not seasonally adjusted unemployment rate was 5.3% in February 2025, up from 4.7% in the previous month and down from 5.5% in February 2024.  
• The total civilian labor force was 142,854 in February 2025, down from 144,900 on February 2024.  
• The number of unemployed persons was 7,555 in February 2025, 426 fewer than in February 2024. 

Unemployment rate, not seasonally adjusted

Source: Employment Security Department/Labor Market Information and Research Division, Local area unemployment statistics

Payroll employment

• Total nonfarm employment was 134,000 in February 2025, not seasonally adjusted. This was down by 300 jobs from the previous month and up by 3,100 jobs (2.4%) from February 2024.  
• Over the year, employment increased in six industries, decreased in one industry, and was unchanged in three industries.  
• The largest over the year increases were in education and health services (800 jobs), government (800 jobs), and retail trade (700 jobs).  
• Over the year decreases occurred in mining, logging, and construction (down 100 jobs). 

Nonfarm employment estimates, not seasonally adjusted, Thurston County

Note: Data benchmarked through September 2024, updated March 28, 2025.
Source: Employment Security Department/Labor Market Information and Research Division, Washington employment estimates (WA-QB & CES)

Industry employment (covered employment)

Employment by industry, Thurston County 2023 annual average

Source: Employment Security Department/Labor Market Information and Research Division, Covered Employment (QCEW)

Average annual covered employment in Thurston County was 126,882 and the average annual wage was $68,201 in 2023. Covered employment refers to workers who received wages in Washington state and are eligible for state and federal unemployment insurance (UI) compensation programs.

Thurston County contains the state capital of Olympia, and Government is by far the largest industry. Government employment was 42,128 in 2023, nearly three times larger than the second most populous industry (health care and social assistance, at 16,109). The average annual wage in government was $80,590. Approximately two thirds of all government employment is with the state (28,397 jobs), making state employment about 22% of all jobs.

Top five sectors in terms of employment in 2023:

• Government (42,128)
• Health care and social assistance (16,109)
• Retail trade (12,464)
• Accommodation and food services (9,410)
• Professional, scientific and technical services (7,003)

The top five sectors in terms of wage in 2023:

• Information ($115,124)
• Management of companies and enterprises ($98,599)
• Professional, scientific, and technical services ($95,419)
• Finance and insurance ($95,111)
• Wholesale trade ($91,453)

Workforce demographics for Thurston County

Thurston County’s 16 and over population is 241,254 and 61.9% of that population is in the labor force. Unemployment and labor force participation rates vary across demographic groups. Among the working age population, men and women are unemployed at the same rate (4.9%), though more men are in the labor force (82.8% vs. 73.8%). About 37% of the population aged 25 to 64 holds a bachelor’s degree.

Visit the U.S. Census Bureau website for quick facts about Thurston County.

Age

Race or Hispanic origin

Sex

Females with children

Poverty status in the past 12 months

Disability status

Educational attainment

Source: U.S. Census Bureau, American Community Survey 5-year estimates, S2301 | Employment Status.

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