Double dip of good economic news in Washington
Dec 18, 2024, 12:36 PM
Washington’s economy saw a significant boost in November, adding an estimated 30,900 jobs, according to seasonally adjusted data. The news comes on the heels of the Federal Reserve cutting interest rates.
The state’s unemployment rate slightly decreased to 4.6%.
The job gains were largely attributed to the end of the Boeing machinists’ strike in October. “Deep, temporary losses in October translated into large gains in November,” Anneliese Vance-Sherman, chief labor economist for the Employment Security Department, said in a news release. “Employment levels continue to increase, but the relative gains have slowed in recent months.”
Over the past year, Washington added 27,300 jobs, marking a 0.8% increase. Despite dropping 30,700 aerospace jobs in October, the unemployment rate only saw a slight dip that month.
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From October to November, the retail trade, construction, and wholesale trade industries experienced the most significant job losses. Conversely, manufacturing, government, and leisure and hospitality sectors led the state’s employment growth.
The unemployment rate has fluctuated between 4.6% and 4.9% since January 2024, compared to 4.0% in November 2023. In November, Employment Security paid unemployment benefits to 62,676 people, an increase of 5,619 from the previous month, driven by higher claims in construction and agriculture.
Updated preliminary data for October 2024 revised the estimated job loss from 35,900 to 33,600, with the seasonally adjusted unemployment rate remaining at 4.7%.
Nationally, the unemployment rate rose from 4.1% in October to 4.2% in November, compared to 3.7% in November 2023.
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Fed cuts interest rates
The Federal Reserve cut its key interest rate by a quarter-point on Wednesday, marking its third reduction this year. However, the central bank signaled a slower pace of rate cuts next year due to persistent inflation.
The Fed’s 19 policymakers now project only two quarter-point cuts in 2025, down from the four cuts they anticipated in September. This suggests that consumers may not see significant reductions in rates for mortgages, auto loans, credit cards, and other borrowing next year.
Fed officials emphasized that they are decelerating rate cuts as their benchmark rate approaches the “neutral” level, which neither stimulates nor restrains the economy. The new projections indicate that policymakers believe they are nearing this neutral rate. Following Wednesday’s move, the benchmark rate stands at 4.3%, after a half-point cut in September and a quarter-point cut last month.
“I think that a slower pace of (rate) cuts really reflects both the higher inflation readings we’ve had this year and the expectations that inflation will be higher in 2025,” Chair Jerome Powell said at a news conference. “We’re closer to the neutral rate, which is another reason to be cautious about further moves.”
Contributing: The Associated Press
Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here.
