Washington's economy posted gains in key measures in recent months, according to the state's August economic report, though announced layoffs threaten momentum. The state added 21,100 jobs in July while the unemployment rate dropped to 5.0 percent, with growth driven by education and health services, leisure and hospitality, retail, and professional services.
State revenues remained resilient, with General Fund collections exceeding forecast by $135.7 million, or 5.4 percent, for the latest collection period. Washington exports also increased significantly, rising 27.1 percent year-over-year in the second quarter, supported by growth in transportation equipment, agriculture, and petroleum products.
Housing construction accelerated as well, with building permits reaching an annualized 49,370 units in the second quarter, well above the first quarter, driven largely by a surge in multifamily construction.
However, announced layoffs and closures scheduled for August and beyond total approximately 3,846 workers, concentrated in technology, food services, logistics, agriculture, manufacturing, and professional services. The state Office of Financial Management identified these planned reductions as an important risk factor for future economic growth.