Foreclosures, unemployment and bankruptcies tell on the economic stress index in Washington

unemployment rates

Foreclosures, unemployment and bankruptcies – the trio that indicates the economic stress show that it has a mixed effect in Washington.

In the autumn of 2008 when there was talk of job losses in the campus of Microsoft, Rod Learmonth thought it was only rumour. Even as the national economy began to dangerously splutter the company remained proud that since the past 34 years there had been no mass layoff thanks to its cash balances to cushion any foul weather. Learmonth as one of its full time managers felt safe and cocooned.

Early in 2009 the talk began to circulate again. It turned into reality when Learmonth got laid off as the recession tearing across the nation made its presence felt in Washington State.

From January 2009 the unemployment rate in about all the counties began to worsen at a sharp pace increasing to be at par with the average of the nation. Bankruptcies and foreclosures too started to make the rounds as per the findings of The Associated Press Economic Stress Map. The index is based on three types of data to measure the economic stress or health of a particular area. Taken into account are foreclosures, bankruptcies and unemployment numbers. Each county is then allotted a certain stress number.

The recession kicked off late in 2007. As it gathered speed the peak point of it reaching the states was November 2008. But Washington State remained immune till about early 2009. Perhaps this was because of the diverse economy of Seattle area. It hosted giants like Microsoft, Starbucks, Boeing and other giant prospering companies. But coffee sales were down as were airlines purchases and computers.

In the fading days of 2008 there were announcements that these companies were resorting to layoffs. It was the first blinking light of warning. Southwest and northeast Washington had already been infected but now the virus entered the core of the state.

The analysis by AP indicated that some of the counties had high number of bankruptcies even before the recession had debuted. It showed that the economic problem had deeper roots than thought of.

The jobless rate of Washington (9.1%) was the highest since 1984 according to a recent survey by Economic and Revenue Forecast Council. It noted that employment was anemic in construction, manufacturing (non-aerospace) and services. The worst affected counties were Clark, Cowlitz and Snohomish with high stress numbers.