Downtown Seattle has lost approximately 30,000 jobs since 2020.
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Washington state added jobs in May, but the state's unemployment rate remained stubbornly higher than the national average as layoffs, corporate restructuring, and out-of-state expansions continue to weigh on the labor market.
According to new data from the Washington Employment Security Department, the unemployment rate remained unchanged at 5.2 percent, marking the third consecutive month at or above that level. The state's unemployment rate remains nearly a full percentage point higher than the national rate of 4.3 percent.
The longer-term trend remains concerning. From May 2025 to May 2026, Washington lost 7,700 jobs, a 0.2 percent year-over-year decline.
The number of unemployed Washingtonians also continued to edge upward. Statewide unemployment increased from 212,230 people in April to 212,412 in May.
The state gained an estimated 10,600 jobs in May on a seasonally adjusted basis. While the monthly job gains offered some positive news after two consecutive months of losses, state economists cautioned against reading too much into a single month's data.
"Job growth was relatively strong in May," said Anneliese Vance-Sherman, chief labor economist for the Employment Security Department. "A strong month of growth is welcome following two consecutive months of employment losses, but it doesn't signal any meaningful shifts on its own."
Vance-Sherman also noted that Washington's labor market continues to show signs of weakness. "Although the unemployment rate remained unchanged this month, it continues a trend of small incremental increases throughout 2025 and the first half of 2026, signaling an increasingly challenging labor market for job seekers."
The Seattle-Bellevue-Everett region saw modest improvement, with the number of unemployed residents declining from 126,368 to 124,679 during the same period.
The latest report comes as Washington continues experiencing a wave of layoffs, corporate downsizing, and companies directing future growth elsewhere.
A recent Downtown Seattle Association report found that downtown Seattle has lost approximately 30,000 jobs since 2020, while neighboring Bellevue has added jobs and experienced stronger commercial growth. Seattle office vacancy rates remain above 30 percent, among the highest levels on record.
Meta recently confirmed nearly 1,400 layoffs in King County as part of broader workforce reductions tied to its artificial intelligence investments.
Starbucks announced plans to move or hire 2,000 workers in Nashville, Tennessee, while simultaneously cutting jobs, consolidating office space, and closing Seattle locations.
Janicki Industries selected Montana for an $800 million expansion expected to create more than 2,000 jobs, after company leadership warned that Washington's regulatory environment was slowing future growth.
Other employers, including Genie Industries, Novanta, Republic National Distributing Company, and Delta Camshaft, have announced layoffs, relocations, closures, or operational reductions affecting hundreds of Washington workers.
The Employment Security Department reported that the strongest job gains in May came from leisure and hospitality, which added 4,800 jobs, followed by manufacturing, which added 2,200 jobs, and construction, which gained 1,600 jobs.
Still, despite the monthly increase, Washington's unemployment rate remains one of the highest in the nation and continues to significantly exceed the national average. For workers searching for jobs, the message from state economists was clear: one strong month does not necessarily signal that the state's broader labor market challenges have been resolved.
According to new data from the Washington Employment Security Department, the unemployment rate remained unchanged at 5.2 percent, marking the third consecutive month at or above that level. The state's unemployment rate remains nearly a full percentage point higher than the national rate of 4.3 percent.
The longer-term trend remains concerning. From May 2025 to May 2026, Washington lost 7,700 jobs, a 0.2 percent year-over-year decline.
The number of unemployed Washingtonians also continued to edge upward. Statewide unemployment increased from 212,230 people in April to 212,412 in May.
The state gained an estimated 10,600 jobs in May on a seasonally adjusted basis. While the monthly job gains offered some positive news after two consecutive months of losses, state economists cautioned against reading too much into a single month's data.
"Job growth was relatively strong in May," said Anneliese Vance-Sherman, chief labor economist for the Employment Security Department. "A strong month of growth is welcome following two consecutive months of employment losses, but it doesn't signal any meaningful shifts on its own."
Vance-Sherman also noted that Washington's labor market continues to show signs of weakness. "Although the unemployment rate remained unchanged this month, it continues a trend of small incremental increases throughout 2025 and the first half of 2026, signaling an increasingly challenging labor market for job seekers."
The Seattle-Bellevue-Everett region saw modest improvement, with the number of unemployed residents declining from 126,368 to 124,679 during the same period.
The latest report comes as Washington continues experiencing a wave of layoffs, corporate downsizing, and companies directing future growth elsewhere.
A recent Downtown Seattle Association report found that downtown Seattle has lost approximately 30,000 jobs since 2020, while neighboring Bellevue has added jobs and experienced stronger commercial growth. Seattle office vacancy rates remain above 30 percent, among the highest levels on record.
Meta recently confirmed nearly 1,400 layoffs in King County as part of broader workforce reductions tied to its artificial intelligence investments.
Starbucks announced plans to move or hire 2,000 workers in Nashville, Tennessee, while simultaneously cutting jobs, consolidating office space, and closing Seattle locations.
Janicki Industries selected Montana for an $800 million expansion expected to create more than 2,000 jobs, after company leadership warned that Washington's regulatory environment was slowing future growth.
Other employers, including Genie Industries, Novanta, Republic National Distributing Company, and Delta Camshaft, have announced layoffs, relocations, closures, or operational reductions affecting hundreds of Washington workers.
The Employment Security Department reported that the strongest job gains in May came from leisure and hospitality, which added 4,800 jobs, followed by manufacturing, which added 2,200 jobs, and construction, which gained 1,600 jobs.
Still, despite the monthly increase, Washington's unemployment rate remains one of the highest in the nation and continues to significantly exceed the national average. For workers searching for jobs, the message from state economists was clear: one strong month does not necessarily signal that the state's broader labor market challenges have been resolved.
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