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Washington State labor market 2025

If you’ve been looking for the latest unemployment numbers to gauge the health of the market, you might have noticed something unusual: The October report is missing.

As we head into the final stretch of 2025, the labor market is in a unique position. Due to the recent 43-day federal government shutdown, the Bureau of Labor Statistics (BLS) was unable to collect household survey data for October. This means we will never see an official unemployment rate for that month.

However, business doesn’t stop just because the data does. At American Workforce Group, we’ve dug into the latest available numbers (September/August) to help you understand what is happening right now in Washington State and across the US.

The National Snapshot: A Cooling Trend

While we wait for the combined data release on December 16th, the most current national figures (from September) show a market that is slowly cooling down.

  • US Unemployment Rate: 4.4% (Up slightly from 4.3%).
  • Where the jobs are: The Healthcare and Food Service industries are booming, adding tens of thousands of jobs.
  • Where things are slowing: The Warehousing and Transportation sectors have seen a dip, shedding about 25,000 jobs nationally as logistics companies adjust to post-pandemic norms.

The Washington State Perspective

Closer to home, the economic headwinds are blowing a bit stronger. The latest finalized data for Washington (August 2025) shows an unemployment rate of 4.5%.

While that number has held steady since June, the underlying trends show a shift in who is hiring.

  • The Challenge: Washington saw a month-over-month decrease of roughly 13,600 jobs. This is largely due to a slowdown in the “Professional & Business Services” sector—a ripple effect of the tech cooling we’ve seen in the greater Seattle area.
  • The Bright Spots: Manufacturing, Education & Health Services remain the strongest pillar of our state economy, adding nearly 20,000 jobs year-over-year.

What This Means for You

For Employers:

The “Candidate Market” is shifting. With the slight rise in unemployment and the contraction in business services, you may find a larger pool of available talent than you did six months ago. However, the right talent is still hard to find.

Advice: If you are hiring for industrial or skilled trades, the cooling in warehousing might release some skilled logistics workers into the job pool. Now is the time to snap up reliable workers who are looking for stability.

For Job Seekers:

Don’t let the headlines about “job losses” panic you. The market isn’t stopping; it’s pivoting.

Advice: If you have been working in sectors that are shrinking, consider how your skills transfer. Manufacturing and support roles are still hiring aggressively. Versatility and upskilling is your best asset right now.

We Are Here to Navigate the Uncertainty

The data might be delayed, but your hiring needs aren’t. Whether you are a business looking to staff up for the new year, or a job seeker looking for your next opportunity in Cowlitz, Clark, Pierce, or Thurston counties, we have our ear to the ground.

Watch this space: On December 16th, the government will release a “double feature” report covering November and the missing October payroll counts. We will be reviewing it closely to keep you informed.

Need help finding the right fit in a shifting market? Contact American Workforce Group today. We make the match happen.

External Resources:

Bureau of Labor Statistics

Washington State

Internal Resources:

Employers – Staff up for the New Year

Job Seekers – Find Jobs

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