How 6,200 job seekers drove up the Tri-Cities unemployment rate. But that’s good news

The Tri-City unemployment rate took an unexpected turn in June but not because of layoffs or closures.

A surge in eligible workers outpaced job growth in the Mid-Columbia, pushing the unemployment rate to 5.3 percent — the highest June rate since 2016.

Unemployment typically drops in June to about 4.7 percent as construction and agriculture jobs take off.

But it’s not necessarily bad news, said Ajsa Suljic, regional labor economist.

The local labor force grew by more than 6,200 potential workers in June while the ranks of the employed grew by 5,500.

Job growth was solid, but not enough to absorb that many job seekers.

Significant milestone

The growing pool of workers pushed the labor force to nearly 152,000, according to figures released Tuesday by the Washington Employment Security Department.

It’s the first time the Tri-City labor force has topped 150,000. Suljic said that’s a significant milestone for the Mid-Columbia.

Job growth, workforce growth and population growth point to a strong, growing economy in the Tri-Cities, which stands at about 300,000 people, according to the most recent census estimates.

“If we see people coming in, it’s good,” she said.

Labor growth was the story across the state as communities from Bellingham to Spokane to Walla Walla to Yakima saw the number of willing workers outpace job growth.

“Pretty much all of our smaller communities have seen an increase in unemployment due to increased labor force,” she said.

Seattle was the lone exception with an unemployment rate planted firmly at 2.9 percent, which translates to more than 50,000 job-seekers.

The statewide unemployment rate was 4.4 percent, the same as last year but up three-tenths of a percent from May.

Graduations, not layoffs

Suljic said there have been no significant layoffs or closures, which are the usual culprits when unemployment rates climb.

She said newly minted high school and college graduates are swelling the workforce.

Her advice to young, inexperienced job seekers: Master those soft skills — friendliness, punctuality, common sense, curiosity.

Employers hire for those skills and train them on the hard skills.

Hospitality going strong

Hospitality has long been a strong performer for the Tri-Cities, accounting for 12,700 jobs in June — 400 more than last year.

Mark Blotz, general manager for Kennewick’s Clover Island Inn, said hiring has been more challenging.

With Tri-Cities Water Follies hitting its stride this week, the inn is full and at peak employment — about 65 workers in housekeeping, dining and administration.

“There are people out there who want to work. You just have to look a little harder,” he said.

Other key sectors include construction, which grew by 1,000 jobs to a total of 10,400;, manufacturing grew by 1,000 positions to 9,400; retail added 600 to a total of 14,000; education is up 1,500 jobs to 18,000 total; and leisure/hospitality added 400 jobs to 12,700 positions.

The unemployment rates in other cities were: Bellingham (5.4 percent), Bremerton (5.2 percent), Clark County (5.3 percent), Longview (6.7 percent), Pierce County (5.6 percent) Spokane (5.5 percent), Spokane Valley (5.6 percent), Thurston County (5.3 percent), Walla Walla (5.1 percent), Wenatchee (4.4 percent), Yakima (6.2 percent).