Unemployment rises to 4.7% in Okanogan County amid economic transition

OKANOGAN — Okanogan County's labor market displayed a complex mix of growth and challenges in July, according to a comprehensive labor area summary released by the Employment Security Department.

The report, compiled by regional labor economist Donald W. Meseck, indicates that the county's unemployment rate increased to 4.7% in July, up from 3.9% in July 2023. Despite this rise in unemployment, the county's labor force grew by 1.6% year-over-year, expanding from 20,894 to 21,223 residents.

Nonfarm employment in Okanogan County rose by 1.1% between July 2023 and July 2024, adding 150 jobs to reach a total of 14,420. This growth varied across sectors, with some industries gaining jobs while others experienced declines.

The retail trade sector added 50 jobs, growing by 2.3% year-over-year to reach 2,200 positions in July. This growth follows a period of fluctuation, including job losses at the start of the COVID-19 pandemic and subsequent expansion over the past three years.

Wholesale trade expanded by 10.5%, adding 20 jobs year-over-year. The private education and health services sector grew by 1.2% to reach 1,750 jobs in July.

State and local government employment, a major component of the county's economy, increased by 0.4%, adding 20 jobs year-over-year to reach 5,040 positions in July. However, within this category, state and local government education decreased by 2.4%, shedding 40 jobs over the same period.

The report details a long-term shift in the county's economic structure, particularly in the agricultural sector. Between 2013 and 2023, agricultural employment in Okanogan County fell by 36.1%, from 5,694 jobs to 3,639. This decline reduced agriculture's share of total covered employment from 32.5% to 21.3% over the decade.

Agricultural wages also saw a relative decline in importance to the local economy. While agricultural payroll grew by 6.6% between 2013 and 2023, its share of total covered wages in the county decreased from 21.6% to 14.7%.

These changes point to an ongoing economic transition in Okanogan County, with the agricultural sector's role diminishing while other industries expand. The report suggests that factors such as automation, conversion of seasonal jobs to year-round positions, and increased use of H-2A agricultural labor may contribute to this shift.

As Okanogan County continues this economic evolution, the diversification of its job market presents new challenges and opportunities for local workers and businesses. The growth of non-agricultural sectors will play a key role in shaping the county's economic future.