WASHINGTON — Several of Western Washington’s blue-chip employers have announced or have reported layoffs. Combined with layoffs at the federal government, as well as hiring freezes and furloughs in state government, some economists are feeling nervous about the current economic situation.
Between Starbucks, Boeing, REI and several lesser-known employers, 4,226 layoffs have been filed to the Washington Employment Security Department through WARN notices. Around double the number of federal government employees filed for unemployment through the ESD so far this year, 952 compared to 452 last year.
Geek Wire has reported other layoffs outside of WARN notices at Blue Origin, Expedia, and PATH, though the exact number and location in Washington are uncertain. It comes as the Atlanta Office of the Federal Reserve projected a shrinking economy at the start of 2025.
“You start wondering, is this tenuous and fragile? Then all of the suddenly you add on top of that these furloughs, layoffs, tariffs and uncertainty which make businesses sort of stop,” said Hart Hodges, an economist professor at Western Washington University and co-director of its Center for Business & Economic Research.
There were more layoffs, 6,957, at the start of 2024. One of the concerns Hodges has is that those workers and others laid off more recently, are taking step-backs in their careers instead of more lateral moves.
He says growth in the Information Technology sector that fueled the region for the better part of two decades has slowed. The Leisure and Hospitality industry picked up where Tech left off for the last several years, but now he’s seen that industry’s growth slow as well.
“Can something else take over as the drivers of growth? And we’re not confident about that right now,” Hodges said. “Do they wind up taking a job that is full-time, but it’s less money? That all impacts consumer spending at the end of the day, right? And that’s where we start to question what the impacts to our region and to the country.”
In ESD’s latest report, Washington’s unemployment rate was lower (4.3%) than it was at the same time last year (4.5%). While it is still higher than the national average (4.1%) national unemployment climbed from the same time last year (3.7% in 2024).
With how well the stock market was performing heading into the year, Hodges theorizes that many of those who were laid off may have retired, keeping the unemployment rate at a relatively low level.
“I think you have to be anticipating a period of slower economic growth. And and not as strong of a labor market and whatever that that’s going to mean different things for different people,” Hodges said.
ESD Commissioner Cami Feek said the state’s economy added 24,000 jobs in 2024, so there are places for employment ESD’s WorkSource offices are trying to connect recently laid-off workers.
“We are doing our best to share information as we know it so that we can get connected with those workers in our state," Feek said.
Feek’s office will connect with employers that have recently filed WARN notices for layoffs. For federal workers, ESD has been trying to reach out to connect those people with resources, including a string of webinars tailored to that workforce over the next three months, with the first on March 20.
ESD tracks in-demand sectors that across the state are focused on sales, marketing and operation managers. Feek says WorkSource centers can connect people with jobs, help with resumes, and provide training in areas that are of need.
“For all of us, always being prepared if there’s a reason to pursue a different work opportunity is a healthy thing to do,” Feek said.
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