OLYMPIA – Washington’s labor market decreased by an estimated 900 jobs (seasonally adjusted) in August 2026 while the unemployment rate decreased, for the second consecutive month, to 4.9%.
“Nonfarm employment decreased in August, following three consecutive months of growth,” said Anneliese Vance-Sherman, chief labor economist for the Employment Security Department. “The unemployment rate also decreased in August.”
Vance-Sherman added, “Although job counts and the unemployment rate often move in tandem, they do tell different stories. The estimated tally of jobs decreased in August, however, the number of unemployed job seekers also decreased, resulting in a lower unemployment rate.”
From August 2025 to August 2026, the number of jobs in Washington increased by 14,900 jobs – a 0.4% increase.
In August, private sector jobs collectively decreased by 9,000, while the public sector increased by an estimated 8,100 jobs. The largest one-month sector-level gains in private industry occurred in other services (up 1,800), manufacturing (up 800) and retail and wholesale trade (each up 500).
Employment Security paid unemployment benefits to 59,956 people in August, a decrease of 1,057 from the previous month. Decreases in unemployment claims primarily came from construction, retail trade, and professional, scientific and technical services.
Learn more about Washington’s labor economy with Employment Security’s monthly employment reports
Every month, the Employment Security Department publishes preliminary seasonally adjusted estimates for the previous month’s job changes and unemployment. The agency also publishes confirmed data for the month before last.
Go to the Employment Security website to find:
- The monthly employment report and publication schedule.
- More labor market information and tools.
- Contact information for labor economists.
National unemployment rate
The national unemployment remained the same at 4.1% from July 2026 to August 2026. For comparison, the national unemployment rate (revised) for August 2025 was 4.3%.
Labor force
From July 2026 to August 2026, the number of people who were unemployed statewide decreased from 202,809 to 197,474. In the Seattle/Bellevue/Everett region, the number of people who were unemployed decreased from 116,997 to 113,603 during the same time.
In August, the state’s labor force was 4,043,691 – a decrease of 9,931 people from last August. In the Seattle/Bellevue/Everett region, the labor force decreased by 5,352 people during the same period.
Labor force is the number of employed and unemployed people over the age of 16. Layoffs and labor force participation are not necessarily connected. When people are laid off but still seeking work, they remain a part of the labor force. A drop in the labor force means people have left work and haven’t been seeking employment for more than four weeks.
Six major industry sectors expanded, six contracted in August
Private sector employment decreased by 9,000 jobs from July 2026 to August 2026. Government employment increased by 8,100 during the same time.
The largest sector-level gains in the private industry were in other services (up 1,800 jobs); manufacturing (up 1,100); and retail trade and wholesale services (each up 900).
- Gains in other services were widespread, with the largest increase observed in membership associations and organizations (up 900).
- Gains in manufacturing were primarily observed in durable goods manufacturing (up 1,100); nondurable goods manufacturing fell by 300.
- The deepest one-month sector losses were observed in professional and business services (down 4,500), leisure and hospitality (down 3,700) and information (down 2,300).
- Losses in leisure and hospitality were observed throughout the sector. Accommodation and food services employers collectively shed 3,500 jobs in August.
Table 1: Washington’s total jobs (12-month overview)
| Month | Total jobs (losses or gains) | Unemployment rate | Previous year’s unemployment rate |
| August 2026 | -900* | 4.9%* | 4.6% |
| July 2026 | +21,000 | 5.0% | 4.6% |
| June 2026 | +9,400 | 5.2% | 4.5% |
| May 2026 | +10,000 | 5.2% | 4.5% |
| April 2026 | -5,100 | 5.2% | 4.5% |
| March 2026 | -10,000 | 5.1% | 4.5% |
| February 2026 | -6,700 | 5.1% | 4.4% |
| January 2026 | +13,600 | 5.0% | 4.4% |
| December 2025 | +10,200 | 4.9% | 4.3% |
| November 2025 | -5,600 | 4.9% | 4.3% |
| October 2025 | -12,200 | N.A. | 4.4% |
| September 2025 | -8,600 | 4.7% | 4.4% |
| August 2025 | +800 | 4.6% | 4.5% |
* The most recent month reports preliminary data. Past months report data revised from their original publication. This is a standard practice as data matures.