Surprisingly strong hiring last month by construction companies in Washington helped make up for losses in tech, but the boost is likely only temporary as the state heads toward a weaker labor market.
Employers in Washington added 6,100 jobs in April and the state’s unemployment rate dropped to 4.3%, according to data posted Wednesday by the Employment Security Department.
Although that’s less than half the jobs added Washington saw in January and February, it represents a modest improvement over March hiring, which was revised upward from 1,500 jobs to 4,300 jobs in the latest report.
Construction hiring led the way in April, with employers adding 4,300 jobs.
But economists cautioned that the surge in construction jobs was probably partly driven by projects that were already underway, as well as by government initiatives such as affordable housing.
Most of the construction hiring was for specialty trades contractors, who typically “are going to be working on existing inventory, things that have already been put up, houses that have been planned,” said Paul Turek, ESD’s state economist.
The increase may also be a bit of a rebound from earlier construction losses, including 3,300 last month, added ESD regional economist Scott Bailey.
“Construction employment is still a bit below its peak last October,” Bailey said, In housing construction in particular, “the permit numbers I’m seeing are quite a bit lower than a year ago.”
April hiring was also strong in education and health services, which gained 2,500 jobs, and leisure and hospitality, with 1,300.
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Gains in those sectors more than offset losses in five others, including a decline of 1,300 in wholesale trade, 1,100 in government and 800 in professional and business services.
Tellingly, April saw hiring decline by 700 jobs in the information sector, which includes many of the tech firms that have slashed staff in recent months due to a post-pandemic slowdown.
Last week, Redmond-based Microsoft announced 158 more Seattle-area layoffs, bringing total area layoffs since start of the year to 2,901, the most since at least 2004.
Amazon has announced even larger layoffs, though it’s unclear how many of them have been local.
Turek said he expects additional cuts in the tech sector, which he says is especially sensitive to higher interest rates.
Although Turek isn’t anticipating large future cuts in tech, he does think the sector’s downsizing trend “is more likely to continue throughout the year.”
