- Posted March 2025
Summary
Island County non-farm employment declined by 140 between December 2020 or in January 2025 over the year from January 2024 to January 25 it was the opposite story as nonfarm employment gained 130 jobs.
Over the months the bulk of losses and nonfarm employment could be pinned on a seasonal decline in retail trade which dropped by 50 jobs and a decline in construction of 30 jobs between December 2024 and January 2025.
Over the year government employment was up 80 jobs while other services increased by 50 private education and health services gained 30 jobs over the year and professional and business services was up 40 losses occurred in financial activities which declined by 50 in leisure and hospitality which dropped by 40 over the year.
Unemployment in Island County went up slightly in January 2025 to 5.1% up from the December 2024 rate of 4.8 percent. In January 2024 the unemployment rate in Island County was 5.3%.
The remainder of winter should see unemployment rates rising slightly is not environment employment declines slightly as well. Expect this situation to continue in the spring as longer and warmer days aid employment gains.
Geography
Island County is situated in the Salish Sea in northwest Washington. As its name suggests, it is made up of several islands. The two largest are Whidbey and Camano. Island County is the second smallest county in Washington by landmass, just larger than neighboring San Juan County. Island County is bounded to the north by Deception Pass and to the south by Puget Sound. Skagit Bay and Saratoga Passage are located to the east and Admiralty Inlet and the Strait of Juan de Fuca are west. Skagit and Snohomish counties lie to the east of Island County and the Olympic Peninsula lies across the water to the west.
Island County is one of six counties included in the Seattle-Tacoma Consolidated Metropolitan Statistical Area (CMSA).
The largest employer is U.S. Naval Air Station Whidbey Island in Oak Harbor. Oak Harbor is the largest city in the county.
Island County is part of the Northwest Workforce Development Area. Visit the Workforce Training & Education Coordinating Board website for information about the 12 regions.
Employment situation for January 2025
Labor force and unemployment
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The not seasonally adjusted unemployment rate was 5.1% in January 2025, up from 4.8% in December 2024 and down slightly relative to 5.3% in January 2024.
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The labor force increased by 875 workers over the year.
Unemployment rate, not seasonally adjusted
Source: Employment Security Department/Labor Market Information and Research Division, Local area unemployment statistics
Payroll employment
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Total nonfarm employment increased by 160 jobs from December 2024 to January 2025.
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Overall, employment growth has slowed as we enter winter.
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The largest one-month increases were observed in leisure and hospitality. Construction, trade transportation and utilities, and education and health services also added jobs in January.
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Total nonfarm employment shrunk by 110 jobs from January 2024 to January 2025. The largest decreases were seen in education and health services and in leisure and hospitality. Professional and business services added more jobs than any other sector over the same time.
Nonfarm employment estimates, not seasonally adjusted, Island County
| NAICS Industry Title | Jan 2025 (Preliminary) | Dec 2024 (Revised) | Jan 2024 (Revised) | Dec 2024 to Jan 2025 change | Jan 2024 to Jan 2025 change | Jan 2024 to Jan 2025 % change |
|---|---|---|---|---|---|---|
| Total nonfarm | 18,410 | 18,550 | 18,280 | -140 | 130 | 0.7% |
| --Total private | 13,660 | 13,780 | 13,600 | -120 | 60 | 0.4% |
| ---Goods-producing | 2,030 | 2,060 | 2,000 | -30 | 30 | 1.5% |
| -----Mining, Logging and Construction | 1,260 | 1,290 | 1,240 | -30 | 20 | 1.6% |
| -----Mining and logging | 10 | 10 | 10 | 0 | 0 | 0.0% |
| -----Construction | 1,250 | 1,280 | 1,230 | -30 | 20 | 1.6% |
| -----Manufacturing | 770 | 770 | 760 | 0 | 10 | 1.3% |
| -------Durable goods | 580 | 580 | 560 | 0 | 20 | 3.6% |
| -------Nondurable goods | 190 | 190 | 190 | 0 | 0 | 0.0% |
| ---Service-providing | 16,390 | 16,490 | 16,280 | -100 | 110 | 0.7% |
| -----Trade, transportation, and utilities | 2,640 | 2,680 | 2,630 | -40 | 10 | 0.4% |
| -------Wholesale Trade | 250 | 250 | 260 | 0 | -10 | -3.8% |
| -------Retail trade | 2,150 | 2,200 | 2,120 | -50 | 30 | 1.4% |
| ---------Transportation, Warehousing, and Utilities | 240 | 230 | 250 | 10 | -10 | -4.0% |
| -----Information | 260 | 250 | 260 | 10 | 0 | 0.0% |
| -----Financial activities | 640 | 650 | 690 | -10 | -50 | -7.2% |
| -----Professional and business services | 1,860 | 1,850 | 1,820 | 10 | 40 | 2.2% |
| -----Private education and health services | 2,830 | 2,880 | 2,800 | -50 | 30 | 1.1% |
| -----Leisure and hospitality | 2,440 | 2,450 | 2,480 | -10 | -40 | -1.6% |
| -----Other services | 960 | 960 | 910 | 0 | 50 | 5.5% |
| -----Government | 4,760 | 4,770 | 4,680 | -10 | 80 | 1.7% |
| -------Federal | 1,400 | 1,390 | 1,340 | 10 | 60 | 4.5% |
| -------State government | 160 | 160 | 160 | 0 | 0 | 0.0% |
| ---------State government education | 60 | 60 | 60 | 0 | 0 | 0.0% |
| -------Local government | 3,210 | 3,220 | 3,180 | -10 | 30 | 0.9% |
| ---------Local government education | 1,360 | 1,370 | 1,410 | -10 | -50 | -3.5% |
Note: Data benchmarked through September 2024, updated March 17, 2025.
Source: Employment Security Department/Labor Market Information and Research Division, Washington employment estimates (WA-QB & CES)
Industry employment (covered employment)
Employment by industry, Island County 2023 annual average
Note: ND stands for not disclosed. ND is used to avoid disclosing data for individual employers. Industries labeled ND are grouped in the Not elsewhere classified category.
Source: Employment Security Department/Labor Market Information and Research Division, Covered Employment (QCEW)
Average annual covered employment in Island County was 18,095 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.
Wages can vary substantially from one industry sector to another. The average annual wage in Washington state for all industries was $87,054 in 2023. The average annual wage in Island County was $55,071 in 2023.
Top sectors in terms of employment in 2023:
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Government (4,588)
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Retail trade (2,267)
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Accommodation and food services (2,220)
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Health care and social assistance (2,020)
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Construction (1,314)
The top sectors in terms of wage in 2023:
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Professional, scientific, technical ($112,683)
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Finance and insurance ($106,646)
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Mining and Utilities* ($91,835)
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Wholesale trade ($84,675)
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Information ($74,181)
Workforce demographics in Island County
Age
| Demographic characteristic | Total | Labor force participation rate | Unemployment rate |
|---|---|---|---|
| Population 16 years and over | 73,254 | 57.0% | 4.7% |
| 16 to 19 years | 3,479 | 46.5% | 22.8% |
| 20 to 24 years | 5,779 | 91.2% | 11.9% |
| 25 to 29 years | 5,632 | 80.5% | 3.1% |
| 30 to 34 years | 5,445 | 82.9% | 3.6% |
| 35 to 44 years | 10,114 | 82.6% | 4.6% |
| 45 to 54 years | 8,285 | 81.7% | 3.1% |
| 55 to 59 years | 5,106 | 75.2% | 2.6% |
| 60 to 64 years | 6,774 | 49.7% | 3.0% |
| 65 to 74 years | 13,659 | 19.5% | 1.5% |
| 75 years and over | 8,981 | 8.9% | 0.0% |
Race or Hispanic origin
| Demographic characteristic | Total | Labor force participation rate | Unemployment rate |
|---|---|---|---|
| White alone | 59,206 | 54.6% | 4.7% |
| Black or African American alone | 2,014 | 76.8% | 5.2% |
| American Indian and Alaska Native alone | 717 | 71.5% | 3.8% |
| Asian alone | 3,777 | 62.9% | 5.7% |
| Native Hawaiian and other Pacific Islander alone | 281 | 91.1% | 0.0% |
| Some other race alone | 1,467 | 78.5% | 2.4% |
| Two or more races | 5,792 | 61.3% | 4.0% |
| Hispanic or Latino origin (of any race) | 5,209 | 75.8% | 6.6% |
| White alone, not Hispanic or Latino | 57,586 | 53.9% | 4.4% |
| Population 20 to 64 years | 47,135 | 77.8% | 4.3% |
Sex
| Demographic characteristic | Total | Labor force participation rate | Unemployment rate |
|---|---|---|---|
| Male | 24,351 | 84.9% | 4.6% |
| Female | 22,784 | 70.2% | 3.9% |
Females with children
| Demographic characteristic | Total | Labor force participation rate | Unemployment rate |
|---|---|---|---|
| With own children under 18 | 7,543 | 68.8% | 2.1% |
| With own children under 6 only | 2,419 | 68.6% | 4.5% |
| With own children under 6 and 6 to 17 | 1,787 | 64.7% | 0.9% |
| With own children 6 to 17 only | 3,337 | 71.1% | 1.3% |
Poverty status in the past 12 months
| Demographic characteristic | Total | Labor force participation rate | Unemployment rate |
|---|---|---|---|
| Below poverty level | 3,314 | 35.6% | 11.3% |
| At or above the poverty level | 41,866 | 80.3% | 4.0% |
Disability status
| Demographic characteristic | Total | Labor force participation rate | Unemployment rate |
|---|---|---|---|
| With any disability | 5,632 | 54.2% | 5.2% |
Educational attainment
| Demographic characteristic | Total | Labor force participation rate | Unemployment rate |
|---|---|---|---|
| Population 25 to 64 years | 41,356 | 75.9% | 3.5% |
| Less than high school graduate | 1,946 | 61.4% | 9.6% |
| High school graduate (includes equivalency) | 10,107 | 76.7% | 3.1% |
| Some college or associate's degree | 16,605 | 73.7% | 3.5% |
| Bachelor's degree or higher | 12,698 | 80.3% | 3.0% |
Source: U.S. Census Bureau, American Community Survey 5-year estimates, S2301 | Employment Status
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