The latest jobs report for Washington state shows slight hiring growth and a dip in unemployment for the first time in more than a year and a half. Though unemployment in the state remains higher than the national average, labor economists called the news “bright” and credited World Cup-related hiring for the bump.
The unemployment rate dropped from 5.2% in June to 5% in July, according to the state’s Employment Security Department. Unemployment had been rising steadily in Washington from a low of 4.3% in January of last year.
The state also added around 21,00 jobs, the largest uptick in hiring that Washington has seen since January 2026.
The new report shows growth particularly in the service industry, with the biggest gains in education, health services, and leisure and hospitality.
“This is a sector that we've really been watching,” said Annelise Vance-Sherman, chief labor economist for the Employment Security Department.
She added that leisure and hospitality had seen a steady addition of jobs since May, adding a total of around 10,700 jobs, particularly in food and drinking establishments.
“I do think that the World Cup had a lot to do with that,” Vance-Sherman said.
State economists won’t know whether the gains are temporary until August jobs are tallied next month, she said.
State and federal government jobs saw the biggest losses in the last month, shedding about 1,400 positions, followed by cuts in the mining and logging industries.
The employment data comes on the heels of a statewide economic revenue forecast released in late June which predicted slower-than-expected job growth for the year. The fresh jobs report likely wouldn’t sway that economist forecast much, said Dave Reich, chief economist for the revenue council.
The national unemployment rate also decreased slightly in the past month, from 4.2% to 4.1%.
