Washington’s unemployment rate fell to 4.9% in August, but employers reported 2,000 fewer payroll jobs than in July, offering a mixed picture of a labor market with fewer job seekers and little net hiring momentum.

The state’s civilian labor force declined by 4,626 people to 4.044 million, while the number classified as unemployed fell by 5,335 to 197,474, according to the federal household survey released September 18. Because unemployment fell faster than the labor force, the jobless rate moved down from 5.0% in July and 5.2% in June.

Washington’s rate remains above the 4.1% national rate. The longer federal series also shows that the state’s rate was 4.6% in August 2025, meaning the latest improvement has not yet returned unemployment to its year-earlier level. The gap with the national rate therefore narrowed in August but remained meaningful for residents and employers. The next state estimates are scheduled for October 20.

The underlying household figures suggest employment was nearly flat. Subtracting unemployment from the labor force produces an estimated 3.846 million employed Washington residents in August, about 700 more than in July. That small gain accompanied a larger reduction in the number of people working or actively seeking work, so the rate decline should not be read as evidence of broad employment growth.

A separate employer survey moved in the opposite direction. Washington payrolls decreased from 3.649 million in July to 3.647 million in August, the industry tables show. Construction added about 500 jobs and manufacturing added about 200, but professional and business services lost roughly 3,600. Leisure and hospitality declined by about 600, and government payrolls fell by about 700.

Education and health services held at approximately 574,200 jobs after growing by nearly 10,000 over the past year. Overall payroll employment was still 15,200 higher than in August 2025, a gain of about 0.4%, but the improvement was uneven across industries. Manufacturing employment was about 7,100 lower than one year earlier, while construction was down by roughly 1,200.

The two surveys answer different questions. Household estimates count Washington residents who are working or actively seeking work, while the establishment survey counts jobs located at Washington workplaces. A person with two jobs can appear twice in payroll data, and residents who commute across state lines are assigned differently. Both August estimates are preliminary and subject to revision.

Nationally, August unemployment rates fell in eight states and the District of Columbia and were statistically stable elsewhere, while payroll employment rose significantly in only four states, according to the BLS summary. Washington’s payroll change was not statistically significant. Even so, the combination of a smaller labor force and a modest payroll decline gives policymakers and employers reason to watch whether September brings renewed hiring or another month of limited workforce participation.