State Jobless Rate Hits 6.7 Percent Seasonal Increase Blamed On Slowdown Following Christmas

Employment growth in the fourth quarter carried into January to set the jobless rate at 6.7 percent, only four-tenths of a percentage point above December and much lower than the 8.1 percent rate a year ago, state officials said Tuesday.

“Increases in the rate are typical for this time of year as the economy winds down after Christmas,” Employment Security Commissioner Vernon Stoner said. “At the same time, unseasonably mild weather boosted work in construction and other outdoor activity.”

The seasonally adjusted rate dropped to 5.5 percent - almost one-and-a-half percentage points below a year ago and two-tenths of a percentage point less than the 5.7 percent national rate.

In Spokane, the January unemployment rate was 6.2 percent, up from the adjusted December rate of 5.3 percent, but down from the 6.7 percent rate in January 1994.

Fred Walsh, regional labor economist for Employment Security, said the changes are completely typical of the December-January work force transition.

“The month-to-month change is the post-Christmas layoffs,” Walsh said. “The big losers were the categories of services, trade and construction, which is not unusual at all.”

Statewide, non-farm employment dropped 46,100 workers compared to a five-year average January drop of 60,000. Noticeably lighter retrenchment occurred in trade (-18,500), construction (-7,200), and manufacturing (-2,100).

Aircraft and parts employment fell by another 400 jobs, according to Dennis Fusco, chief economist for the department. Services payrolls dropped by 11,300.