Local sectors show mixed results as Wenatchee area employment dips

WENATCHEE - The Wenatchee Metropolitan Statistical Area (MSA) faces economic challenges as employment declined in July, according to a labor area summary released by the Washington State Employment Security Department.

The report, compiled by regional labor economist Donald W. Meseck, details job losses and economic shifts in Chelan and Douglas Counties, which make up the Wenatchee MSA.

Total nonfarm employment in the area fell by 2.9% year-over-year, a loss of 1,500 jobs. The MSA provided 49,600 jobs in July, down from 51,100 in July 2023. This decline contrasts with Washington state's overall employment trend, which saw a 1.7% increase in nonfarm jobs over the same period, adding 62,500 positions to reach a total of 3,678,000 jobs.

The report shows that while Washington has experienced 40 consecutive months of year-over-year job growth, the Wenatchee area has seen contractions since May 2024.

The unemployment rate in the Wenatchee MSA rose to 4.4% in July, up from 3.2% in July 2023, an increase of 1.2 percentage points. The civilian labor force contracted by 2.8%, with 1,942 fewer residents participating compared to the previous year.

Key industries in the region showed mixed results:

Construction employment decreased by 2.4%, losing 100 jobs year-over-year. Despite this downturn, the local real estate market showed some positive signs. The July Real Estate Snapshot newsletter reported a 10.9% increase in closed sales of single-family homes and condominiums in the Wenatchee market area from January through July compared to the same period in 2023. The median sales price also rose by 5.8% to $505,000.

The leisure and hospitality sector saw a 5.3% decline, shedding 400 jobs. The report notes that recent wildfires in central Washington likely contributed to this downturn.

The private education and health services sector provided a bright spot in the local economy, adding 500 jobs for a 6.1% increase over the year. This sector emerged as the largest job creator in the Wenatchee MSA between July 2023 and July 2024, continuing a 40-month trend of year-over-year growth.

The report also examined long-term trends in agricultural employment. Both Chelan and Douglas Counties have seen declines in agricultural jobs over the past decade:

Chelan County lost 12.2% of its agricultural workforce between 2013 and 2023, with the number of jobs falling from 9,327 to 8,187. The agricultural share of total covered employment in the county decreased from 23.5% to 18.0% during this period.

Douglas County experienced a 21.0% drop in agricultural employment, with jobs decreasing from 2,939 in 2013 to 2,323 in 2023. The agricultural share of total covered employment fell from 26.9% to 18.7% over the decade.

Despite these job losses, agricultural wages have shown modest growth in both counties. In Chelan County, agricultural payroll increased at an annualized rate of 3.5% between 2013 and 2023, while Douglas County saw a 3.4% annualized growth rate.

The report suggests several factors potentially contributing to the decline in agricultural employment, including automation, the gradual conversion of seasonal jobs to year-round positions, and increased use of H-2A agricultural labor.

As the Wenatchee MSA addresses these economic challenges, the contrast with the state's overall job growth underscores the regional nature of employment trends and the ongoing transformation of the area's economic landscape.