Tri-City unemployment rises despite 1,100 new jobs in April

The Tri-City unemployment rate rose to 7.1 percent in April, the first annual increase in more than two years.

The Washington Employment Security Department said Tuesday the local unemployment rate was 9 percent higher than a year earlier, when it was 6.5 percent.

The unemployment rate tends to rise over the winter and fall in the spring and 2016 is no exception. The Tri-City unemployment rate has dropped steadily since January, when 8.4 percent of local workers were unemployed.

Ajsa Suljic, regional labor economist, said softer-than-expected construction hiring helped keep the unemployment rate higher than anticipated. The industry added 200 workers in April. Suljic said a rise in underemployed and discouraged workers also kept the unemployment rate high.

There were 9,405 unemployment claims in the Tri-Cities in April compared to 8,378 the prior year.

Suljic said April was actually a strong month despite the rising unemployment rate. The region added 1,100 jobs, extending a job creation streak that now stands at 37 months. The civilian labor force is at a record 133,251 people.

Besides construction, professional services, healthcare, education and the hospitality sector contributed to job gains, Suljic said. She attributes much of the growth to Hanford-related activities.

The leisure and hospitality sector, which includes hotels, food service establishments and entertainment venues, was another bright spot. It continued its months-long growth streak in April by adding 200 positions. It has grown by 400 jobs this year and currently employs 10,500 Tri-Citians, or roughly one in 10 workers.

Suljic said the traditionally low-wage industry is important because it reflects growth in disposable income and offers employment and job experience.

“It’s an opportunity for individuals to find jobs,” she said. “It’s not the same but it’s a vital part of any given community.”

April did bring some concerning lay off news.

Washington Closure Hanford, CRF Frozen Foods in Pasco and the Sports Authority all notified the state they are laying off local employees under the Worker Adjustment Retraining Notification Act, or WARN.

Washington Closure Hanford will lay off 435 workers staring in July, part of a long-planned ramp down in which most workers have already found other jobs.

CRF Frozen Foods in Pasco is laying off up to 250 employees while investigators scour the plant for the source of listeria that sickened eight customers and led to a total recall of all its products and shutdown of its plant.

Sports Authority is laying off all 25 workers its Kennewick store as the national retail chain goes out of business.

The CRF layoffs were unexpected, but will be temporary. Suljic said there have been few unemployment claims from CRF workers as most were reassigned to other duties or were placed on call-back lists.

“I’m not seeing any slowdown necessarily,” she said, “But it is worrisome that we have three current WARN notices.”

This story was originally published May 24, 2016 at 4:48 PM with the headline "Tri-City unemployment rises despite 1,100 new jobs in April."