POSTED: Thursday, Jan. 21, 2010

Whatcom County's unemployment rate rises in December

In what is typically a quiet month for the labor market, Whatcom County and the rest of the state had a significant increase in the unemployment rate in December.

This area's unemployment rate was 8.3 percent in December, up from a revised rate of 7.9 percent in November, according to the latest data from the Washington State Employment Security Department. The state's seasonably adjusted unemployment rate was 9.5 percent in December, up from 9 percent the previous month.

National unemployment was at 10 percent last month.

With retailers still in the midst of the holiday shopping season, December's unemployment rate tends to remain stable before rising significantly in January as those part-time jobs disappear and other seasonal changes take place, said Joe Giannamore, a regional labor economist for Washington state.

"This rise in Whatcom County and in Washington was not a good sign," Giannamore said. "Apparently there are still some issues with the recession that we're still working out."

Last month 8,860 people were actively seeking employment in Whatcom County, up 350 from November. The December total is an increase of 2,120 from a year ago.

Giannamore expects January's local unemployment rate to be up another half of a percentage point, getting Whatcom County up near 9 percent. By the end of 2010, he thinks the unemployment rate will be around where it is now.

"It's still a long, slow recovery when it comes to the job market," Giannamore said.

Local construction employment continues to decline. In December an estimated 6,000 people were employed in the industry, the lowest level since April 2002.

The government sector also continued to shed jobs, decreasing by 400 from November to December, to 16,200.

Retail employed 10,300 people during the final weeks of the holiday season, down from 10,700 in December 2008.

The Seattle/Everett/Bellevue area's unemployment rate was 9 percent in December, up from 8.4 percent the previous month.

Skagit County also had a significant jump in the unemployment rate - 10.7 percent in December, up from a revised November rate of 10.1 percent.

Giannamore said Skagit has been hit hard in the construction industry.

"Skagit's economy is not as diversified and has less recession-proof industries," Giannamore said. "Its economy just doesn't handle recessions as well."