Island County profile

Learn about Island County's unique labor market information including monthly unemployment and nonfarm employment statistics.

 

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August 2026 highlights

Updated September 2026

Compared to July 2026, the unemployment rate increased from 3.4% to 4.3% (1,520 unemployed individuals). Employers reported 210 fewer jobs on payrolls (for a total of 18,710 jobs).

Island County's labor market highlights

A dark blue map of Washington state with Island County highlighted in orange.
  • Government is Island County's largest economic sector in terms of employment followed by accommodation and food service and transportation and warehousing.

Contact Island County's labor economist

Toby Paterson, North sound region

​Island County is part of the Northwest Workforce Development Area. Visit the workforce board’s website for information about Washington’s 12 workforce regions.

Island County is one of six counties included in the Seattle-Tacoma Consolidated Metropolitan Statistical Area (CMSA).

Employment updates for August 2026

Changes to the labor force and unemployment

The August 2026 unemployment rate was 4.3% in Island County, 4.7% in Washington state and 4.3% in the United States.

 Measure  August 2026 July 2026 August 2025
 Participant (labor force)  35,662 35,203 35,142
 Employed persons  34,142 34,016 33,530
 Persons seeking work  1,520 1,187 1,612
 Unemployment rate  4.3% 3.4% 4.6%

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

Island County's unemployment rate, January 2024 to August 2026

Island County's unemployment rate tends to track the state's unemployment rate.

A chart showing the not seasonally adjusted unemployment rate for Island County from January 2024 to August 2026.
Year Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Legend - a dashed blue line with a diamond representing year 1 in the graph
2024
5.2% 5.6% 4.9% 4.1% 4.4% 3.8% 4.6% 4.7% 3.8% 4.4% 4.5% 4.6%
Legend - a orange line with a square representing year 2 in the graph
2025
5.0% 5.6% 4.6% 4.2% 4.5% 3.7% 4.3% 4.6% 4.0% N/A 5.0% 5.3%
Legend - a dark blue line with a circle representing year 3 in the graph
2026
5.0% 5.0% 5.0% 5.0% 4.7% 4.2% 3.4% 4.3%        

Source: Employment Security Department/Labor Market Information and Research (LMIR) Division, Local area unemployment statistics (LAUS). BLS canceled October 2025's unemployment publications.

Key changes in payroll employment 

This includes all employees with paid positions tracked in a company’s payroll system. This doesn’t include agriculture jobs or jobs outside of formal payroll such as freelancers, contractors and self-employed individuals. Numbers in this section are estimates generated by a monthly survey.

In August 2026, Island County had 18,710 jobs.

Compared with July 2026, August employment decreased by 210 jobs.

  • 20 more construction jobs.
  • 140 fewer retail trade jobs.
  • 40 more manufacturing jobs.
  • 220 fewer private education and health services jobs.

Compared with August 2025, this August’s employment was up by 150 (0.8%) jobs.

  • 80 (6.3%) more construction jobs.
  • 10 (0.5%) fewer retail trade jobs.
  • 20 (2.9%) more manufacturing jobs.
  • 10 (0.4%) fewer private education and health services jobs.

Employment estimates for Island County

See a snapshot of this month's data below. A detailed spreadsheet titled Current employment estimates, not seasonally adjusted is on the source page of our site.

Total jobs

Industry sector Aug. 2026 Jul. 2026 Aug. 2025 Jul. 2026 to
Aug. 2026
Aug. 2025 to
Aug. 2026
Aug. 2025 to
Aug. 2026 %
Total nonfarm 18,710 18,920 18,560 -210 150 0.8%
- Private 13,930 14,120 13,930 -190 0 0.0%
- Government 4,780 4,800 4,630 -20 150 3.2%

Goods-producing jobs

Industry sector Aug. 2026 Jul. 2026 Aug. 2025 Jul. 2026 to
Aug. 2026
Aug. 2025 to
Aug. 2026
Aug. 2025 to
Aug. 2026 %
Goods-producing 2,110 2,050 1,990 60 120 6.0%
- Mining and logging 60 50 40 10 20 50.0%
- Construction 1,340 1,320 1,260 20 80 6.3%
- Manufacturing 710 670 690 40 20 2.9%

Service-providing jobs

Industry sector Aug. 2026 Jul. 2026 Aug. 2025 Jul. 2026 to
Aug. 2026
Aug. 2025 to
Aug. 2026
Aug. 2025 to
Aug. 2026 %
Service-providing 16,600 16,870 16,570 -270 30 0.2%
- Wholesale trade 230 230 240 0 -10 -4.2%
- Retail trade 2,190 2,330 2,200 -140 -10 -0.5%
- Transportation, warehousing, and utilities 250 250 240 0 10 4.2%
- Information 270 270 290 0 -20 -6.9%
- Financial activities 680 680 720 0 -40 -5.6%
- Professional and business services 1,880 1,840 1,760 40 120 6.8%
- Private education and health services 2,760 2,980 2,770 -220 -10 -0.4%
- Leisure and hospitality 2,530 2,530 2,700 0 -170 -6.3%
- Other services 1,020 970 1,020 50 0 0.0%
- Government 4,780 4,800 4,630 -20 150 3.2%

Note: Data benchmarked through March 2026, updated September 16, 2026. The current month’s data is preliminary. Analysts continue to refine past months as more related information becomes available. Industry columns use North American Industry Classification System (NAICS) industry titles. Source: Employment Security Department/Labor Market Information and Research Division, Washington employment estimates (WA-QB & CES)

Employment details for industries and sectors

This profile section uses the latest Quarterly Census of Employment and Wage (QCEW) annual averages data.

This quarterly census data includes both agricultural and nonagricultural employment and wages for firms, organizations and individuals with employees covered by the Washington State Employment Security Act. Covered employment refers to the total number of employees with this type of coverage.

Top sectors by employment

2024’s annual average was 18,271 total covered employees.

  • Government - 4,725 jobs.
  • Accommodation and food services - 2,269 jobs.
  • Retail trade - 2,200 jobs.
  • Healthcare and social assistance - 2,122 jobs.
  • Construction - 1,260 jobs.

Top sectors by wages

2024’s annual average wage was $58,930 for covered employees.

  • Professional, scientific, and technical services - $124,267.
  • Finance and insurance - $121,588.
  • Information - $92,992.
  • Wholesale trade - $77,199.
  • Management of companies and enterprises - $74,788.

2024 annual average employment by industry

A bar graph showing the 2024 annual average industry employment in Island County

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

Workforce demographics in Island County

Age

Demographic characteristic Total Labor force
participation rate
Unemployment
rate
Population 16 years and over  73,388  56.0% 4.3%
16 to 19 years  3,171  50.5% 15.1%
20 to 24 years  5,574  91.4% 12.0%
25 to 29 years  5,709  80.8% 2.2%
30 to 34 years  5,401  82.5% 5.4%
35 to 44 years  10,296  81.8% 4.1%
45 to 54 years  8,254  76.7% 2.8%
55 to 59 years  4,810  73.9% 1.6%
60 to 64 years  6,914  51.1% 3.5%
65 to 74 years  13,898  19.7% 1.7%

Race or Hispanic origin

Demographic characteristic Total Labor force
participation rate
Unemployment
rate
White alone  58,439   53.1%   4.6% 
Black or African American alone  1,779   78.3%   1.7% 
American Indian and Alaska Native alone  741   67.7%   4.8% 
Asian alone  3,822   63.6%   4.1% 
Native Hawaiian and Other Pacific Islander alone  363   83.2%   0.0% 
Some other race alone  1,754   75.0%   4.5% 
Two or more races  6,490   63.8%   2.7% 
Hispanic or Latino origin (of any race)  5,319   73.9%   4.3% 
White alone, not Hispanic or Latino  57,100   52.5%   4.6% 
Population 20 to 64 years  46,958   76.7%   4.2% 

Sex

Demographic characteristic Total Labor force
participation rate
Unemployment
rate
Male  24,224  84.0% 4.3%
Female  22,734  68.8% 4.0%

Females with children

Demographic characteristic Total Labor force
participation rate
Unemployment
rate
With own children under 18 years  7,247  67.1% 1.9%
With own children under 6 years only  2,289  67.6% 3.3%
With own children under 6 years and 6 to 17 years  1,577  56.2% 1.4%
With own children 6 to 17 years only  3,381  71.8% 1.3%

Poverty status in the past 12 months

Demographic characteristic Total Labor force
participation rate
Unemployment
rate
Below poverty level  3,631  38.1% 15.3%
At or above the poverty level  41,595  79.3% 3.6%

Disability status

Demographic characteristic Total Labor force
participation rate
Unemployment
rate
With any disability  5,884  54.2% 6.5%

Educational attainment

Demographic characteristic Total Labor force
participation rate
Unemployment
rate
Population 25 to 64 years  41,384  74.7% 3.3%
Less than high school graduate  1,890  64.1% 10.4%
High school graduate (includes equivalency)  10,256  74.0% 3.1%
Some college or associate's degree  16,046  71.9% 3.9%
Bachelor's degree or higher  13,192  80.1% 2.0%

Source: U.S. Census Bureau, American Community Survey, 2024: ACS 5-year estimates, S2301 | Employment Status

Funding

This workforce product was funded by a grant awarded by the U.S. Department of Labor's Employment and Training Administration. The product was created by the recipient and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, expressed or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This product is copyrighted by the institution that created it. Internal use by an organization and/or personal use by an individual for non-commercial purposes is permissible. All other uses require the prior authorization of the copyright owner.