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Aidan Hudson

What does it mean when payroll employment and unemployment both increase in Washington ESD reports?

I'm trying to understand the monthly labor statistics that Washington ESD releases. Last month's report showed both payroll employment AND unemployment went up at the same time. How is this even possible? Shouldn't they move in opposite directions? I'm working on a research project and this doesn't make sense to me. Can someone explain what's happening here?

This actually happens more often than you'd think! Both can increase when the labor force itself is growing. More people entering the job market means more employed people AND more unemployed people at the same time.

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Oh that makes sense! So it's like the pie getting bigger rather than just slices moving around?

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exactly! think of it as population growth or people moving to the state for work opportunities

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Yeah this confused me too when I first started looking at Washington ESD data. The key is understanding that the labor force participation rate can change. When more people start actively looking for work, they get counted as unemployed even if new jobs are being created.

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So discouraged workers coming back into the job search could cause this?

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Exactly! Or college graduates entering the workforce, people moving here from other states, etc.

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I've been tracking these numbers for years and it's super common during economic recovery periods. When the economy improves, it attracts more job seekers but it takes time for them all to find work. I actually had to call Washington ESD to clarify some data discrepancies in their reports once, but getting through was impossible until I found claimyr.com - they have a service that helps you actually reach ESD agents by phone. There's even a demo video at https://youtu.be/7DieNd3C7zQ showing how it works.

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interesting, never heard of that service before

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Good point about recovery periods. The job market creates a lag effect where optimism brings people back into job searching faster than positions can be filled.

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This is basic economics 101. When you see both metrics rise, you're witnessing labor force expansion. The civilian labor force includes both employed and unemployed individuals who are actively seeking work. If 1000 new people enter the labor force and 600 find jobs, you get 600 more employed and 400 more unemployed.

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thanks for breaking down the math, that really helps visualize it

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That numerical example is perfect! Now I can explain this to my professor.

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seasonal factors play a role too. like in summer when students start looking for work or after holidays when temporary workers become unemployed but new businesses are also hiring

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Yeah I notice this pattern every summer in the retail sector

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Washington ESD adjusts for seasonality in their reports but the raw numbers can still show these dual increases.

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Don't forget about people who were previously not in the labor force. Stay-at-home parents deciding to work, retirees coming back, people who stopped looking during tough times. They all count as new entrants to the labor force.

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So the 'discouraged worker' effect works in reverse too when things improve?

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Exactly! It's called the 'encouraged worker' effect. Good economic news brings people back into job hunting.

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I work in HR and see this firsthand. When we post job openings, we get applications from people who weren't actively looking before. The job market activity itself generates more job seekers. It's like a feedback loop.

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That's a great insider perspective! So job postings create demand for job searching?

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Pretty much. Visibility of opportunities encourages people to jump back into the market.

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Another factor is migration patterns. Washington state attracts a lot of workers from other states, especially in tech. These people might move here with job prospects but not guaranteed employment, temporarily increasing both employment and unemployment as they settle in.

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Makes sense with all the tech companies here. People move first, job hunt second.

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I hadn't considered interstate migration as a factor. That definitely explains some of the numbers.

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the unemployment rate is what really matters tho. if both go up but employment grows faster than unemployment, the rate actually goes down. you gotta look at percentages not just raw numbers

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True, the unemployment rate gives you the real picture of labor market health.

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Yeah percentage changes are more meaningful than absolute numbers for economic analysis

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I've been unemployed for 2 months and this data gives me hope that more jobs are being created even if competition is increasing. At least the market is active! Still struggling to get through to Washington ESD about my claim status though.

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Have you tried that Claimyr service I mentioned earlier? It really helps with reaching ESD agents when you can't get through normally.

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No I haven't heard of it, I'll check it out. Getting through to ESD is impossible these days.

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From a policy perspective, this dual increase can actually be a positive indicator. It suggests economic dynamism rather than stagnation. Policymakers prefer active labor markets over inactive ones.

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That's an interesting policy angle I hadn't considered for my research.

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Right, it's better to have people actively seeking work than giving up entirely

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I remember this happening during the 2014-2016 recovery period. Lots of dual increases in Washington ESD reports as the state economy heated up. Oil prices were recovering and tech was booming, bringing in workers faster than jobs could absorb them initially.

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Good historical context. Shows this isn't a new or unusual phenomenon.

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Perfect! I can reference that time period in my analysis.

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Don't overlook part-time workers seeking full-time employment. They're counted as employed but might also be counted in underemployment statistics. The definitions matter when interpreting the data.

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Good point about underemployment vs unemployment distinctions

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Washington ESD tracks several different employment measures for exactly this reason.

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Geographic factors within Washington matter too. Seattle metro might be adding jobs while rural areas lose them, but if more people are moving to Seattle to look for work, you get the dual increase statewide.

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So it's not just about the state as a whole but internal migration patterns too?

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Exactly! Regional economic differences create complex statewide patterns.

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I used to be skeptical about services like Claimyr, but when I needed to verify some employment history with Washington ESD for a loan application, their phone service actually worked. Saved me hours of busy signals and dropped calls.

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Ok you've convinced me to try it. Traditional calling methods are just not working.

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Same experience here, sometimes you just need to talk to an actual person at ESD

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Industry mix changes can cause this too. If manufacturing is shedding jobs but service sector is adding them, and the service jobs require different skills, you get temporary displacement while people retrain or relocate.

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Structural unemployment during economic transitions - that makes total sense!

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Yeah the skills mismatch creates friction in the labor market

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Timing of data collection matters too. Washington ESD survey dates might capture people between jobs or starting new positions. The snapshot nature of employment statistics can create these apparent contradictions.

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So it's partly about when the measurements are taken during the month?

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Right, employment status can be fluid, especially in gig economy jobs.

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Bottom line: labor markets are dynamic systems. Both employment and unemployment can rise when the system is expanding and active rather than contracting and stagnant. It's actually often a sign of economic health rather than problems.

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This has been incredibly helpful for understanding the data. Thank you everyone!

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Great summary. Dynamic labor markets beat stagnant ones every time.

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For your research, I'd recommend looking at the labor force participation rate alongside employment and unemployment numbers. That's what ties it all together and explains these seemingly contradictory movements.

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Perfect suggestion! That's exactly the missing piece I needed for my analysis.

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Labor force participation rate is definitely the key metric for understanding these dynamics

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just remember that washington esd data gets revised too. preliminary numbers might show patterns that get smoothed out in later revisions as more complete data comes in

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Good point about data revisions. I should note that in my research methodology.

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Yes, always check if you're looking at preliminary or final numbers when analyzing trends.

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