King County Labor Area Summary October 2021 - The Workforce ...
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King County Labor Area Summary October 2021 Anneliese Vance-Sherman, Ph.D., Regional Labor Economist Washington State Employment Security Department Data Architecture, Transformation & Analytics Division Phone: 425-258-6315 Mobile: 360-630-1232 Email: anneliese.vance-sherman@esd.wa.gov Website: esd.wa.gov/labormarketinfo *Data used in this report available at the web address listed above. Overview • In October 2021, the not seasonally adjusted unemployment rate in King County was 4.4 percent – unchanged over the month. Twelve months ago, the unemployment rate was 6.3 percent. • The King County labor force expanded by 14,215 or 1.1 percent over the year. • Nonfarm employment expanded by 12,100 from September to October 2021. There were an estimated 1,449,100 total nonfarm jobs in King County. • Six major industries detailed in this report expanded employment over the month and 4 shed jobs. The largest gains were attributable to hiring in government and professional and business services. Construction and information shed the largest number of jobs over the month. • Total nonfarm employment in October 2021 was 74,500 above the level observed 12 months earlier—following the peak Covid-19 related job losses in the spring. Compared to October 2020, employment was up 5.4 percent. • Each major industry detailed in this report expanded employment over the year. Leisure and hospitality and professional and business services added the largest number of jobs since October 2020. Important note: April 2020 was marked by the highest unemployment rates in recent memory. This report, 18 months after the peak of the pandemic employment crisis, shifts the narrative from crisis to recovery. This report compares the week containing the 12th of October with the corresponding week in the previous month and year. For all intents and purposes, this is the 19th report that addresses the disruption caused by COVID-19 and the social distancing measures put into effect to slow the contagion. Until recently, the most reliable closer-to-real-time indicator has been weekly Unemployment Insurance claims. A supplemental section dedicated to weekly UI claims tracking for King County for the past several weeks is included in this report. Employment Security Department King County Labor Area Summary October 2021 Page 1
Unemployment rates and labor force information The not seasonally adjusted unemployment rate for King County was 4.4 percent (preliminary) in October 2021. This is unchanged relative to September (revised). The unemployment rate in October 2020 was 6.3 percent, after having reached a record 15.1 percent in April 2020. Circumstances surrounding Covid-19, specifically social distancing measures, took hold in the Seattle area before expanding statewide and much of the nation. A swift and steep spike in unemployment has been declining since April 2020. October 2021 labor force estimates follow: • King County labor force: 1,299,767 • Total employed: 1,242,523 • Total unemployed: 57,244 • Unemployment rate: 4.4% Figure 1. Unemployment rates, not seasonally adjusted King County, January 2018 through October 2021 Source: Employment Security Department/DATA 16% 14% Unemployment rate (NSA) King County, 2018-2021 12% 10% 8% 6% 4% 2% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2018 3.6% 3.4% 3.2% 2.7% 3.0% 3.2% 3.3% 3.1% 3.2% 3.1% 3.1% 3.1% 2019 3.5% 3.0% 3.0% 2.2% 2.6% 2.4% 2.7% 2.5% 2.5% 2.3% 2.1% 2.3% 2020 2.6% 2.5% 5.3% 15.1% 12.2% 10.6% 9.3% 7.8% 7.2% 6.3% 5.9% 5.8% 2021 6.3% 5.4% 5.5% 4.9% 4.6% 5.1% 5.1% 4.8% 4.4% 4.4% The unemployment rate has stabilized in the 5 percent range in recent months. In April 2020, the unemployemnt rate reached 15.1% Month-to-month, King County’s labor force decreased by 10,221 resident workers. The number counted among the employed contracted by 9,704 and the number of active job seekers contracted by 517. Over-the- year, the labor force expanded by 14,215 people or 1.1 percent. Within that, the number of employed workers expanded by 37,731 or 3.1 percent and the number of unemployed workers contracted by 23,516 or 29.1 percent. Employment Security Department King County Labor Area Summary October 2021 Page 2
Figure 2. Civilian labor force, not seasonally adjusted King County, January 2018 through October 2021 Source: Employment Security Department/DATA 1,330,000 1,320,000 1,310,000 Civilian Labor Force (NSA) King County, 2018-2021 1,300,000 1,290,000 1,280,000 1,270,000 1,260,000 1,250,000 1,240,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2018 1,252,730 1,272,719 1,267,434 1,260,490 1,262,355 1,260,690 1,269,320 1,264,763 1,271,889 1,262,536 1,270,156 1,261,960 2019 1,281,888 1,289,124 1,289,824 1,279,695 1,284,090 1,283,959 1,295,029 1,294,745 1,295,722 1,287,282 1,295,583 1,286,688 2020 1,303,173 1,317,445 1,283,248 1,252,637 1,270,104 1,282,074 1,285,777 1,291,239 1,290,702 1,285,552 1,293,751 1,283,590 2021 1,298,850 1,315,493 1,310,433 1,304,727 1,293,755 1,297,414 1,316,199 1,317,920 1,309,988 1,299,767 The labor force dropped swiftly in 2020 and has been recovering. As of October 2021, the labor force expanded by 1.1% over the year Washington state The not seasonally adjusted unemployment rate for Washington State also remained unchanged from September (revised) to October (preliminary) at 4.4 percent. The statewide labor force decreased by 5,354 over the month. Within that, the estimated number of employed people contracted by 6,278 and the number of unemployed job seekers expanded by 924. Over the year, the labor force contracted by 33,499 or 0.8 percent. Beneath the surface, the employed labor force expanded by 43,371 or 1.2 percent and the count of unemployed contracted by 76,870 or 30.7 percent. The unemployment rate 12 months ago was 6.3 percent. The September forecast by Washington’s Economic and Revenue Forecast Council estimates that the statewide unemployment rate averaged 6.4 percent in 2020, representing a significant drop relative to the June forecast. The unemployment rate is expected to increase to an average rate of 6.7 percent in 2021(up from the June forecast) and drop to 4.8 percent in 2022. See www.erfc.wa.gov for more information. Seattle-Bellevue-Everett Metropolitan Division (MD) The Seattle-Bellevue-Everett MD combines labor force information for Snohomish and King Counties. King County’s unemployment rate consistently runs below that of Snohomish County. The not seasonally adjusted unemployment rate for the combined MD remained unchanged at 4.6 percent over the month. Twelve months ago, the unemployment rate was 6.5 percent. City level estimates The Bureau of Labor Statistics and Employment Security Department publish labor force information for cities with a population of 25,000 or more. Unemployment rates for selected cities can be found at www.esd.wa.gov/labormarketinfo/labor-force Employment Security Department King County Labor Area Summary October 2021 Page 3
Unemployment Insurance (UI) Claims UI claims activity during the Great Recession peaked in May 2009 (49,117 continued claims were counted that month) and were on downward trend that had more-or-less settled out to about 12,000 per month until the arrival of the Coronavirus economy. The wave of claims in April 2020 reached unprecedented levels; 137,755 King County residents filed initial claims and 130,305 individuals collected unemployment insurance that month. In October 2021, 4,147 new claims were filed by King County residents and a total of 12,975 King County residents collected benefits from the state UI system. Weekly Initial Claims In March 2020, the Employment Security Department began publishing weekly counts of initial claims for Unemployment Insurance. Initial claims provide an indicator of layoffs. Because they are entered weekly, they are a bit more nimble than our survey-based datasets. Initial claims activity has more or less returned to normal. At this point, the number of initial claims is below the number of claims that we saw at this time of the year in 2019. For reference, 967 applications for regular unemployment insurance were received during the 46th week of 2021 (November 14-20). This compares to 6,260 initial claims received during the 46th week of 2020 and 1,182 claims during the 46th week of 2019. Federal extensions of unemployment insurance including PUA and PEUC (part of the CARES Act) concluded on September 4, 2021. Figure 3. Initial Claims for Unemployment Insurance King County, January 2020 through November 2021 Source: Employment Security Department/DATA 50,000 45,000 40,000 Initial claims, King County 35,000 30,000 25,000 2019 2020 2021 20,000 15,000 10,000 5,000 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 claim week The week of October 10-16 (week 41) is the reference for labor force and payroll statistics in this report. Now that weekly claims activity is slowing down, our weekly UI series will be published on a monthly schedule. UI data is published by ESD and the Department of Labor on Thursdays. Weekly claims data can be found here: https://esd.wa.gov/labormarketinfo Additional information can be found here: https://esd.wa.gov/newsroom/covid-19 Employment Security Department King County Labor Area Summary October 2021 Page 4
Total nonfarm employment Total nonfarm employment (not seasonally adjusted) expanded by 12,100 from September (revised) to October 2021 (preliminary). Over the year, employers in King County collectively recovered 74,500 jobs— up 5.4 percent relative to October 2020. The tally of nonfarm jobs in King County was estimated nearly 1.45 million in October 2021. Figure 4. Nonfarm industry employment King County, January 2018 through October 2021 Source: Employment Security Department/DATA 1,550 Total nonfarm employment (1,000s) 1,500 King County, 2018-2021 1,450 1,400 1,350 1,300 1,250 1,200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Series4 1,408. 1,409. 1,417. 1,419. 1,431. 1,440. 1,440. 1,440. 1,439. 1,444. 1,450. 1,452. Series3 1,440. 1,431. 1,447. 1,452. 1,465. 1,479. 1,483. 1,482. 1,477. 1,477. 1,485. 1,493. Series2 1,474. 1,475. 1,467. 1,313. 1,314. 1,347. 1,355. 1,363. 1,371. 1,374. 1,379. 1,375. 2021 1,358. 1,366. 1,377. 1,387. 1,395. 1,412. 1,428. 1,434. 1,437. 1,449. King County job growth was disrupted by the pandemic. Employment in October 2021 was 5.4 percent higher than October 2020 The Puget Sound area was impacted before other areas in the state and nationally. This report reveals the impacts of Covid-19 and related measures on the local labor market. Specifically, data in this report coincides with the week of October 10-16 on the unemployment insurance calendar (previous section). Because the deep drop in employment occurred in April 2020, this is the seventh report that shifts the narrative from labor market damage to labor market recovery. Employment Security Department King County Labor Area Summary October 2021 Page 5
Figure 5. Total nonfarm industry employment, not seasonally adjusted King County, October 2020 and September and October 2021 Source: Employment Security Department/DATA Nonfarm Employment Estimates, Not Seasonally Adjusted King County Data benchmarked through June 2021 Change Prelim Revised Revised Sep-21 Oct-20 Oct-20 NAICS Industry Title Oct-21 Sep-21 Oct-20 Oct-21 Oct-21 Oct-21 Total Nonfarm 1,449,100 1,437,000 1,374,600 12,100 74,500 5.4% Total Private 1,275,100 1,268,100 1,205,400 7,000 69,700 5.8% Goods Producing 173,700 173,800 170,200 -100 3,500 2.1% Mining and Logging 400 400 500 0 -100 -20.0% Construction 80,300 81,100 79,000 -800 1,300 1.6% Construction of Buildings 22,900 23,000 23,300 -100 -400 -1.7% Heavy and Civil Engineering Construction 7,500 7,700 6,800 -200 700 10.3% Specialty Trade Contractors 49,800 50,400 48,900 -600 900 1.8% Manufacturing 93,000 92,300 90,600 700 2,400 2.6% Durable Goods 66,800 66,300 66,400 500 400 0.6% Fabricated Metal Product Manufacturing 5,800 5,900 5,800 -100 0 0.0% Computer and Electronic Product Mfg. 7,600 6,800 7,800 800 -200 -2.6% Navgtnl., Measuring, Electromed., & Control 4,600 4,600 4,600 0 0 0.0% Transportation Equipment Manufacturing 35,200 35,300 35,300 -100 -100 -0.3% Aerospace Product and Parts Mfg. 31,800 31,900 32,100 -100 -300 -0.9% Nondurable Goods 26,200 26,000 24,200 200 2,000 8.3% Food Manufacturing 12,200 12,400 11,600 -200 600 5.2% Service Providing 1,275,400 1,263,200 1,204,400 12,200 71,000 5.9% Trade, Transportation, and Utilities 283,800 281,400 279,800 2,400 4,000 1.4% Wholesale Trade 60,300 60,300 59,300 0 1,000 1.7% Retail Trade 172,600 170,100 172,100 2,500 500 0.3% Motor Vehicle and Parts Dealers 10,100 10,100 10,400 0 -300 -2.9% Food and Beverage Stores 26,500 26,300 24,900 200 1,600 6.4% General Merchandise Stores 18,300 17,900 17,600 400 700 4.0% Transportation, Warehousing, and Utilities 50,900 51,000 48,400 -100 2,500 5.2% Transportation and Warehousing 48,700 49,200 46,500 -500 2,200 4.7% Air Transportation 14,400 14,300 12,400 100 2,000 16.1% Truck Transportation 7,000 7,200 7,000 -200 0 0.0% Support Activities for Transportation 10,900 10,800 10,500 100 400 3.8% Warehousing and Storage 3,300 3,300 3,300 0 0 0.0% Information 138,900 139,600 130,200 -700 8,700 6.7% Software Publishers 75,000 75,700 73,300 -700 1,700 2.3% Financial Activities 75,200 74,800 72,600 400 2,600 3.6% Finance and Insurance 43,200 43,000 43,100 200 100 0.2% Employment Security Department King County Labor Area Summary October 2021 Page 6
Credit Intermediation and Related 16,400 16,500 16,300 -100 100 0.6% Insurance Carriers and Related 19,400 19,300 18,900 100 500 2.6% Real Estate and Rental and Leasing 32,000 31,800 29,500 200 2,500 8.5% Professional and Business Services 251,800 248,800 233,200 3,000 18,600 8.0% Professional, Scientific, and Technical Services 146,500 145,300 133,900 1,200 12,600 9.4% Legal Services 12,100 12,200 11,800 -100 300 2.5% Accounting, Tax Prep., Bookkpg., and Payroll 10,000 10,200 9,100 -200 900 9.9% Architectural, Engineering, and Related 19,300 19,200 19,100 100 200 1.0% Computer Systems Design and Related 50,500 50,400 46,000 100 4,500 9.8% Management of Companies and Enterprises 30,000 30,100 29,900 -100 100 0.3% Admin., Support, Waste Mgmt., and Remediation 75,300 73,400 69,300 1,900 6,000 8.7% Administrative and Support Services 73,300 70,500 66,000 2,800 7,300 11.1% Employment Services 32,200 29,800 24,800 2,400 7,400 29.8% Educational and Health Services 186,800 184,200 180,200 2,600 6,600 3.7% Educational Services 31,500 29,900 27,200 1,600 4,300 15.8% Ambulatory Health Care Services 61,300 60,900 60,000 400 1,300 2.2% Hospitals 29,700 29,700 29,700 0 0 0.0% Nursing and Residential Care Facilities 18,000 18,000 18,900 0 -900 -4.8% Social Assistance 46,200 45,700 44,400 500 1,800 4.1% Leisure and Hospitality 116,000 116,600 92,300 -600 23,700 25.7% Arts, Entertainment, and Recreation 21,200 22,200 15,600 -1,000 5,600 35.9% Accommodation 9,100 9,200 7,000 -100 2,100 30.0% Food Services and Drinking Places 85,700 85,200 69,700 500 16,000 23.0% Other Services 48,900 48,900 46,900 0 2,000 4.3% Repair and Maintenance 8,400 8,600 8,100 -200 300 3.7% Personal and Laundry Services 14,800 14,300 13,400 500 1,400 10.4% Religious, Grantmkg., Civic, Professional, & Similar 25,700 26,000 25,500 -300 200 0.8% Government 174,000 168,900 169,200 5,100 4,800 2.8% Federal Government 19,000 19,200 20,100 -200 -1,100 -5.5% State Government 51,800 50,600 50,700 1,200 1,100 2.2% State Government Educational Services 37,400 36,300 36,400 1,100 1,000 2.7% Local Government 103,200 99,100 98,400 4,100 4,800 4.9% Local Government Educational Services 43,500 40,600 39,800 2,900 3,700 9.3% Workers in Labor/Management Disputes 0 0 0 0 0 Employment Security Department King County Labor Area Summary October 2021 Page 7
Nonfarm industry employment Goods-producing Industries From September to October 2021, total employment in goods-producing industries dipped by 100, with gains in manufacturing tempered by seasonal losses in construction. Year-over-year, goods-producing employment was up 3,500 or 2.1 percent, reflecting a rebound by construction early in the pandemic and a number of dynamics occurring within manufacturing. Employment levels in construction-related industries dropped by 800 over the month. The tally of jobs in construction was estimated at 80,300. Year-to-year, employment in construction was up 1,300 or 1.6 percent. • Despite a major temporary setback due to physical distancing protocols in April 2020, King County based employment in construction quickly recovered and surpassed pre-pandemic levels. Recent growth has been concentrated in specialty trade contractors and heavy and civil engineering. • Construction is a highly-seasonal industry. While we can expect to see seasonal losses over the fall and winter months, a strong real estate market and a boom in home improvement projects is continuing to buoy this set of industries. Manufacturing represents a variety of activities in King County, with products ranging from aircraft, marine and electronic products to food manufacturing. In October, King County-located manufacturing employers collectively added 700 jobs. Over the year, total manufacturing employment was up 2,400 or 2.6 percent, despite deep losses within the aerospace industry. • The tally of aerospace products and parts manufacturing contracted by 100 over the month and by 300 over the year. The count of aerospace products and parts manufacturing only catches those employers that are directly and primarily responsible for manufacturing aerospace products. Other products and services in the supply chain are counted under their best fit industries. • In contrast to aerospace, employment in nondurable goods expanded by 200 over the month and by 2,000 jobs over the year. Service-providing industries Service providers represent an extremely diverse collection of sectors. Taken as a whole, service-providing employers added 12,200 jobs in October. Over the year, service providers added 71,000 jobs. The largest one-month increases were observed in government and professional and business services. Over the year, leisure and hospitality and professional and business services added the most jobs. Wholesale trade employment neither expanded nor contracted in October, but expanded by 1,000 or 1.7 percent over the year. Wholesale trade accounted for 60,300 King County-based jobs in October 2021. Net employment in retail trade expanded by 2,500 over the month. Over the year, retail trade employment expanded by an estimated 500 jobs (0.3 percent). • Since October 2020, motor vehicles and parts dealers shed 300 jobs, food and beverage stores added 1,600 jobs, and general merchandise stores expanded employment by 700. • The story of retail trade (especially in King County) goes beyond physical storefronts. Scaling up to the statewide level, “other retail,” a category which includes online retail sales, expanded employment by 1,100 jobs over the year. Net employment in transportation, warehousing and utilities contracted by 100 over the month but expanded by 2,500 over the year. This set of industries accounted for an estimated 50,900 King County jobs. Employment Security Department King County Labor Area Summary October 2021 Page 8
• Over the year, air transportation added 2,000 jobs, truck transportation remained unchanged, and support activities for transportation was up 400. • Employment in warehousing and storage neither expanded nor contracted over the year. Employment in the information sector dipped by 700 over the month but expanded by 8,700 jobs or 6.7 percent over the year. This sector, which includes everything from software publishers to radio stations, newspapers and movie theaters had an estimated tally of 138,900 jobs in October. As a whole, the sector was relatively stable amidst the tumult of the past year. • The information sector includes software publishing activities. Employment in software publishing dipped by 700 in October but expanded by 1,700 over the year. The financial activities sector includes the finance, insurance, real estate and rental and leasing industries. The overall employment level increased by 400 over the month and by 2,600 over the year. • Over the year, employers in finance and insurance collectively added 100 jobs. Real estate and rental and leasing employment expanded by 2,500 over the year. Professional and business services includes a variety of professional and technical services such as accounting and engineering services. It also includes administrative support and management services and supports day to day business operations with services such as housekeeping and temporary employment services. In short, these are the businesses that provide operational support to others in the business community. In October, this diverse sector expanded employment by an estimated 3,000 jobs. Over the year, professional and business services expanded employment by 18,600 (8.0 percent). • From October 2020 to October 2021, professional, scientific and technical services added 12,600 jobs (9.4 percent), management of companies and enterprises expanded employment by 100 (0.3 percent), and administrative support, waste management and remediation was up 6,000 jobs (8.7 percent). Employment services was up 7,400 jobs over the year. Employment levels in educational and health services expanded by 2,600 over the month. Over the year, this diverse sector recovered 6,600 jobs (3.7 percent). Educational and health services accounted for an estimated 186,800 King County-based jobs in October 2021. • Healthcare and education is comprised of a diverse set of industries, each of which has been affected somewhat differently in this health crisis. Over the year, private educational services recovered 4,300 jobs. Ambulatory health care services added 1,300 jobs, hospitals neither expanded nor contracted, and nursing and residential care facilities were down 900 jobs. Social assistance added 1,800 jobs over the year. Leisure and hospitality employment dipped by 600 over the month, following the deepest losses of any industry last year. Over the year, the industries that entertain residents and visitors recovered 23,700 jobs (25.7 percent), but still has a long way to go. • Arts, entertainment, and recreation added 5,600 jobs (35.9 percent), accommodation added 2,100 (30.0 percent) and food services added 16,000 (23.0 percent) over the year. Other services represents a diverse collection of industries that do not fit elsewhere and include employers ranging from religious and grant-making organizations to hair dressers, auto mechanics and dry cleaners to membership clubs. Overall employment levels remained steady over the month but expanded by 2,000 over the year. Other services represented 48,900 King County jobs in October 2021. Employment Security Department King County Labor Area Summary October 2021 Page 9
• Each breakout in the monthly report appears to be on the path to recovery, with the largest 12- month increases attributable to hiring in personal and laundry services – suggesting that people are returning to their personal care routines (e.g. getting haircuts) and returning to the office. Government employers collectively added 5,100 jobs over the month and added 4,800 jobs over the year. • Month-to-month gains were concentrated in local government educational services (i.e. school districts), as school returned in person throughout King County. • Year over year, local and state government added jobs – with most gains attributable to the return to in-person learning. Federal employment dropped over the year, likely reflecting Census layoffs. Forecast information for Washington state: The Washington State Economic and Revenue Forecast Council issues quarterly forecasts that address Washington’s projected economic health. The September forecast is currently online at www.erfc.wa.gov. The Employment Security Department is an equal-opportunity employer and provider of programs and services. Auxiliary aids and services are available upon request to people with disabilities. Washington Relay Service 711. Employment Security Department King County Labor Area Summary October 2021 Page 10
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