The state of unemployment

Despite the addition of 12,400 jobs in Washington, the statewide unemployment rate increased slightly, from 9.2 percent in December to 9.3 percent in January.

Responding to news of the job increase, Governor Christine Gregoire said in a prepared statement last Tuesday, “While today’s news is positive, we aren’t in the clear yet.”

This is especially apparent locally, where unemployment rose more sharply over the same time period: from 10.3 to 10.5 percent in Snohomish County and 8.8 percent to 10 percent in Island County, according to the state’s Employment Security Department.

In fact, the state’s Economic and Revenue Forecast Council, led by chief economist Dr, Arun Raha, noted “that unemployment rates lag employment” in their February economic and revenue update.

Because of this, the council expects the state unemployment rate to peak at 9.8 percent in the second quarter. Growth, they forecast, will start out very slowly, possibly creeping to 2 percent over the second half of the year and eventually edge to 3 percent through 2011.

Another sign of recovery, although minimal, is the number of initial unemployment claims in Washington. Last week, the U.S. Department of Labor reported a decrease of 29,000 initial claims. This decrease follows several weeks of rise, though the four-week average is still down slightly, following a general trend since October 2009.

For those receiving unemployment benefits, good news arrived last week, when the Senate passed a $10 billion measure to extend unemployment benefits to the jobless.

The bill passed the House the week prior, but stalled in the Senate due to Jim Bunning’s (R-Kentucky) filibuster attempt to insist Democrats find revenues to offset the cost of the bill, rather than adding to the deficit.

Bunning eventually conceded, and the bill passed by 78-19. President Obama signed it, extending jobless benefits for 30 days while Congress pursues a longer-term fix.

Staff Reporter Jeremiah O’Hagan: 629-8066 ext. 125 or ohagan@scnews. com.