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Sean Murphy

Washington ESD historical unemployment data - what caused the sharp rise after WWI?

I'm doing some research for a project and trying to understand unemployment patterns in Washington state. Does anyone know what caused the sharp rise in unemployment after World War I? I'm particularly interested in how Washington ESD's predecessor agencies handled the transition from wartime to peacetime employment. Did they have any special programs or was it just chaos back then?

The main factors were demobilization of military personnel, conversion of war industries back to civilian production, and the 1920-21 recession. Washington state was hit particularly hard because of our heavy reliance on shipbuilding and lumber for the war effort.

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That makes sense about the shipbuilding. I hadn't thought about how concentrated those industries were here.

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Yeah the Puget Sound shipyards just shut down entire operations overnight when the war contracts ended

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Back then there wasn't really a formal unemployment system like Washington ESD today. The first unemployment insurance programs didn't start until the 1930s after the Great Depression. So people were basically on their own during that post-war period.

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Wow, can you imagine dealing with unemployment without any benefits or support system? At least now we have Washington ESD even if it's frustrating sometimes.

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honestly the way washington esd phone system works sometimes feels like we're back in the 1920s lol

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The transition was brutal. Millions of soldiers returning home, defense contractors laying off workers, and then the Federal Reserve raised interest rates to combat inflation which made everything worse. Washington's economy was so tied to war production that when it ended, unemployment shot up to like 12% in some areas.

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12%? That's awful. How did families even survive without any safety net?

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Many relied on family, churches, and local charity organizations. Some cities tried to create work programs but it was very limited compared to what we have now.

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my great grandfather always talked about how hard it was finding work after he came back from the war. said there were too many men chasing too few jobs and wages dropped because employers knew people were desperate

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That's exactly the kind of personal perspective I was hoping to find. Did he ever talk about what kind of work he ended up doing?

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he went from being a shipyard supervisor during the war to doing odd jobs and farm work. took him almost 3 years to get steady employment again

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Don't forget about the Red Scare too. A lot of workers who tried to organize for better conditions or protest layoffs got blacklisted as communists. Made it even harder for people to find work.

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I didn't know about that connection. So political fears made the unemployment situation worse?

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Absolutely. Employers used anti-communist sentiment to justify firing union organizers and anyone who complained about working conditions.

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The agricultural sector was struggling too. Crop prices fell after the war because European countries started producing their own food again instead of importing from the US. Rural unemployment was just as bad as urban.

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Good point. Washington's wheat and apple farmers were hit hard when export markets dried up. Many farm workers moved to cities looking for work, which made urban unemployment even worse.

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And then the cities couldn't absorb all those workers because the factories were also cutting jobs. It was a perfect storm.

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I've been dealing with Washington ESD for months now and sometimes I wonder if we've really improved that much since the 1920s. At least back then you didn't have to sit on hold for 4 hours just to get hung up on!

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The 1920-21 recession was actually deflationary, which is the opposite of what we usually see. Prices dropped but so did wages and employment. It was a really weird economic situation.

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That's interesting. So even though things got cheaper, people still couldn't afford them because they didn't have jobs?

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Exactly. Deflation sounds good in theory but it can be just as damaging as inflation when it leads to mass unemployment.

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It's crazy to think about how different things were. No unemployment insurance, no job training programs, no career counseling. Just lose your job and figure it out yourself.

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makes me appreciate washington esd a bit more even when they're being difficult. at least the system exists now

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True, but sometimes I think we've overcomplicated things. The bureaucracy can be just as big a barrier as having no system at all.

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Don't overlook the role of immigration restrictions too. The 1920s saw major changes to immigration policy that affected labor markets. When you can't bring in new workers, it should help unemployment, but the economic disruption was so severe it didn't matter.

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The National Origins Act of 1924 definitely changed the labor landscape, but by then the immediate post-war crisis had mostly resolved. The immigration restrictions were more about long-term economic and social changes.

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Fair point. The timeline is important - the sharp rise happened 1919-1921, while the immigration restrictions came later.

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My question is how did they even measure unemployment back then? We have all these Washington ESD statistics now but what data did they have in the 1920s?

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Good question. Most unemployment data from that era comes from census records, union reports, and local surveys. It wasn't nearly as systematic as what Washington ESD tracks today.

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So we might not even have accurate numbers for how bad it really was?

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Probably not. The official statistics likely underestimated the true scope of unemployment, especially for women and minorities who were often excluded from surveys.

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The psychological impact must have been devastating too. Going from being a war hero to standing in breadlines. No wonder there was so much social unrest in the early 1920s.

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That's a really good point about the psychological aspect. The transition from military service to civilian unemployment must have been especially hard.

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And veterans didn't have the kind of support services we have now either. Just got discharged and told to figure it out.

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For your research, you might want to look into the Seattle General Strike of 1919. That was partly a response to post-war economic conditions and gives you a sense of how desperate things were getting.

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Oh that's perfect! I hadn't connected that strike to the unemployment crisis. Thanks for the tip.

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No problem. The strike was about more than just wages - it was about workers feeling like they had no other options as jobs disappeared.

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Mei Liu

I've been trying to research this same topic but every time I call Washington ESD to ask about their historical records, I can never get through to anyone who knows anything about archives or data requests. So frustrating!

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You should try using Claimyr to get through to Washington ESD. It's specifically designed to help people connect with agents without sitting on hold forever. Might help you reach someone who can point you to the right historical resources.

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Mei Liu

Is that the service you mentioned earlier? I might have to try that because I've been calling for weeks with no luck.

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The interesting thing is how quickly the economy recovered once it hit bottom in 1921. By 1923 unemployment was back down to pre-war levels. Shows how resilient the economy was even without government intervention.

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That's true, but the human cost during those 2-3 years was enormous. Families lost everything, people died from poverty-related causes, social fabric was torn apart.

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Absolutely. I'm not trying to minimize the suffering, just noting that the economic recovery was relatively quick compared to later recessions.

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Don't forget about technological displacement too. The war accelerated automation and mechanization in many industries. Even when production resumed, they needed fewer workers than before.

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Excellent point. The efficiency gains from wartime production methods meant permanent job losses in many sectors. It wasn't just about converting back to peacetime production.

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So it was an early example of technological unemployment? That's really relevant to modern discussions about automation.

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The regional variations were huge too. Some areas of Washington state recovered quickly while others struggled for years. The Spokane area had different challenges than Seattle or Tacoma.

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What made the difference between regions that recovered quickly and those that didn't?

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Mainly economic diversity. Areas that weren't as dependent on war production had an easier time. Places like Seattle that were heavily invested in shipbuilding took longer to recover.

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This is making me think about current unemployment patterns. Are we better prepared now for economic shocks, or do we just have different vulnerabilities?

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We definitely have better safety nets now with Washington ESD and unemployment insurance. But we're probably more economically complex too, which creates new types of risks.

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The 2008 recession and COVID showed we still have major vulnerabilities. But at least people didn't have to rely on charity and family alone like in the 1920s.

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Great discussion everyone! This has given me a lot of good directions for my research. I had no idea there were so many interconnected factors behind the post-WWI unemployment crisis.

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Glad we could help! Economic history is fascinating because it shows how many different forces come together to create these major disruptions.

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Same here. This was way more complex than I initially thought. Thanks to everyone who shared their knowledge and family stories.

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