Job growth in January but unemployment rate unchanged

The state’s new jobless numbers show the unemployment rate was unchanged in January, at 7.5 percent, despite a spike in job growth.

Preliminary numbers from the federal Bureau of Labor Statistics suggest the state gained an estimated 24,000 jobs in January. But state economists say it’s been 17 years since Washington gained that many jobs in one month and that number might be too high.

“Over the course of the last three to four years, the January employment estimates have undergone substantial revisions so, I want to treat the month-to-month change with some degree of caution,” said the state’s chief labor economist Joe Elling. He characterized January jobless numbers as traditionally “volatile” and said the state is averaging job growth of about 5,000 each month over the past year.

Job gains were seen in most sectors including, surprisingly, government, as well as leisure-hospitality and retail. Elling said the increase in government jobs can likely be attributed to education and the start of the legislative session in Olympia.

A preliminary report shows the state added 5,500 jobs in government, 4,600 jobs in leisure and hospitality and 4,000 in retail. Professional and business services added 3,200 jobs in January while construction tacked on 2,300. Transportation added 1,600 and warehousing and utilities saw a rise of 1,600 jobs. Private-sector education and the health services industry were the only two sectors that logged job losses in January.

“The recovery in the state seemed to gain momentum over the course of 2012, compared to the previous two years, with much of the increase centered in the Puget Sound region,” said Elling. “I would say the outlook remains pretty favorable for continued growth in the state economy,” Elling suggested.

An estimated 261,000 people in Washington were unemployed and looking for work in January, including more than 151,000 who claimed unemployment benefits.