Wenatchee area sees job losses and rising unemployment

WENATCHEE - The Wenatchee Metropolitan Statistical Area, comprising Chelan and Douglas counties, saw its unemployment rate rise and nonfarm employment decline in June compared to the previous year, according to a report released by the Washington State Employment Security Department.

The report, compiled by Donald W. Meseck, Regional Labor Economist at the Employment Security Department, provides a detailed analysis of the area's labor market trends.

The unemployment rate in the Wenatchee MSA increased to 3.9% in June 2024, up from 3.3% in June 2023. This rise occurred despite growth in the civilian labor force, which expanded by 1,243 residents to reach 68,835, a 1.8% increase year-over-year.

"This year-over-year increase in the number of unemployed overpowered the expansion in the local labor force, causing the unemployment rate to rise six-tenths of a point, from 3.3% in June 2023 to 3.9% in June 2024," Meseck stated in the report.

Total nonfarm employment in the two-county area decreased by 900 jobs, or 1.8%, from 50,800 in June 2023 to 49,900 in June 2024. This marks a reversal from the area's previous trend of job growth.

According to the report, "Year over year, the Wenatchee MSA's nonfarm market expanded for 37 months (April 2021 through April 2024) before contracting in May and June 2024."

Key industries showing job losses included construction, which declined by 200 jobs or 4.9% year-over-year. However, some sectors did see growth, including education and health services, which added 300 jobs, a 3.7% increase.

The leisure and hospitality sector, crucial to the area's economy, continued its growth trend, adding 200 jobs for a 2.7% increase compared to June 2023. This growth outpaced the statewide trend, where leisure and hospitality employment actually declined slightly.

"Job growth rates in this local industry have been more rapid than leisure and hospitality job growth rates statewide in each of the past 10 months (September 2023 through June 2024)," the report noted.

The report also provided insight into long-term trends in agricultural employment, a significant sector in both Chelan and Douglas counties. In Chelan County, agricultural jobs decreased from 9,327 in 2013 to 8,187 in 2023, a 12.2% decline over the decade. Douglas County saw an even steeper drop of 21% in agricultural employment over the same period.

Despite the job losses, agricultural wages in both counties showed modest growth when not adjusted for inflation. The report suggested several possible explanations for this trend, including "automation, the gradual conversion of some seasonal agricultural jobs to year-round positions, and the increased use of H-2A agricultural labor."

The full impact of these changes on the local economy remains to be seen, but the data suggests a shifting landscape in the Wenatchee area's labor market, with traditional agricultural jobs declining while some service sectors continue to grow.