Washington’s Stagnant Job Growth

Double Dip Unemployment

At first they called it a jobless recovery, now there is doubt if this is a recovery at all! For example the new unemployment numbers: new nationwide unemployment claims increased to 500,000 this last week, meaning that claims are now back up to where they were 9 months ago and a major shock to economists!

The unemployment average in Washington State from the beginning of the third quarter 2009 and the end of the second quarter came in at a very high level of 17.4% putting us up there with Nevada, California and Oregon! The number of people collecting unemployment benefits came in at 9.8% with no relief in sight. 3,500 folks left the workforce from June through July; these are individuals who have basically given up trying to find a job. In addition the number of people employed in the state declined by 2,350 and if added to the above 3,500 we have a net loss of employment in the state of around 6,000 from month to month; NOT GOOD NEWS!

What are the average total numbers? Total number of people unemployed in the Evergreen State during these last four quarters: 617,897! The average number on unemployment benefits came in at 348,010!

Nationally consumer bankruptcy filings were up 20% in June now at the highest level since 2005! Related news was the disturbing fact that Washington State now has 32,486 foreclosed homes on the market and that may explain the decline in home construction this summer. In addition I talked to several people in the industry that tell me there are about 8,000 additional homes in what some refer to as “shadow inventory”. These are homes the banks are either stalling to foreclose on or are waiting to have the legal process come through. King, Snohomish and Pierce counties have the highest foreclosure rates with no end in sight! In fact the trend in foreclosures in the state is rising dramatically according to RealtyTrac!

While all of this was going on President Obama was packing his bags to get on his fleet of aircraft to TAKE HIS SIXTH VACATION THIS YEAR!

BOB CLARK