April job losses show state's economy is slowing

Washington's economy is slowing.

For the second month in a row, the number of nonfarm jobs in Washington fell -- but an economist for the state said the drop does not equal recession.

In April, employment fell by 1,800, and in March, it fell by 2,300. But Washington still has 46,000 more jobs than it had at this time last year, according to a report Tuesday from the state Employment Security Department.

The state estimates that about 158,600 people are looking for a job right now, and the number of unemployed is growing at a faster pace than the labor force.

"We have lost employment over the last several months, but it's a relatively small amount of jobs," state economist David Wallace said in a conference call. "We don't have enough supporting evidence to say we're in a recession."

The government sector -- particularly colleges, prisons and human services -- posted the biggest gain, with 600 jobs. Professional business services followed, with 500 new jobs.

The retail sector lost the most jobs (1,100,) and transportation, warehousing and utilities lost 500. Information type of jobs fell by 500, as well.

In April, the state's unemployment rate was 4.7 percent, compared with a 4.8 percent revised rate in March.

Wallace said that the numbers presented Tuesday -- a falling unemployment rate combined with a falling number of jobs -- give "mixed signals."

Seattle has the lowest unemployment rate in the state at 3.5 percent.

Washington's economic outlook is brighter than the national averages, however. Employment may be falling here, but not as fast as it is nationally. For example, nationwide nonfarm employment has fallen for the past four months, whereas Washington has seen only two months of declines.

"Our economy has slowed, but it's still healthier than many other parts of the country," Employment Security Commissioner Karen Lee said in a statement.

The U.S. unemployment rate was 5 percent in April.

RATES OF UNEMPLOYMENT

U.S.

April 2007: 4.5%

April 2008: 5.0%

Washington

April 2007: 4.4%

April 2008: 4.7%

Seattle/Bellevue/Everett

April 2007: 3.8%

April 2008: 3.5%

Source: State Employment Security Department