State jobless rate up slightly in May; county rate drops

State unemployment rose slightly in May, a sign of a slowing regional economy, state labor economists said this week.

But Spokane County hasn’t heard the news; its jobless rate fell a tenth of a point in May from the previous month, said regional labor economist Jeff Zahir.

Washington’s unemployment rate rose to 5.1 percent in May after remaining in a range of 4.6 percent to 4.8 percent since January. Both employment and the labor force decreased in May, the state Employment Security Department reported.

Spokane’s jobless rate fell to 4.7 percent in May, down from 4.8 percent in April and from 5.2 percent in May 2005, Zahir reported. The national rate was as 4.6 percent in May, down from 4.7 percent in April.

The improvement was largely due to a continued strong showing in Spokane County’s construction sector, he said.

Spokane gained 400 construction jobs in May and has added 1,300 construction jobs from May 2005. While construction statewide is slowing, the trend isn’t as evident in Spokane, Zahir said.

“A lot of that is from momentum carried through from public-sector projects in our area,” he said, such as freeway work and the new convention center exhibit hall.

Zahir said Spokane’s construction job numbers should slow as interest rates rise.

“Those interest rate changes will put pressure on builders and sellers,” he predicted.