Kitsap enters 2019 with strong labor market

Kitsap entered 2019 with a booming job market.

The county boasted nearly 2,500 more jobs on average in 2018 than in 2017, while more residents joined the labor force and unemployment declined.

Margaret Hess, administrator for WorkSource in Kitsap, Jefferson and Clallam counties, said the job market is one of the best she's seen.

"It's a really good place to be in," Hess said.

Corporations and government agencies in nearly every sector are competing for employees, forcing some to offer better pay and incentives or to become more open-minded about who they hire.

Workers are reaping the rewards, said Monica Blackwood, owner of Gig Harbor-based West Sound Workforce.

"Across the board, folks are finding opportunities to move from one company to another and really capitalizing from added benefits," Blackwood said.

Job gains across most sectors

Kitsap employers provided an average of 93,200 jobs in 2018, an increase of 2,483 from 2017, according to preliminary numbers from the state Employment Security Department. The 2.7 percent gain marked the largest year-over-year increase since 2004.

Jobs were added across all sectors tracked by Employment Security, with the exception of manufacturing. Private-sector employment grew at a faster pace than government employment, surging 3.7 percent from 2017 to 2018.

Among the highlights: the county's professional and business services sector — a broad category encompassing everything from legal to accounting, computer and marketing professions — swelled 9.8 percent, with the addition of 700 jobs.

Federal employment climbed from 19,200 jobs in 2017 to 19,400 in 2018.

Growing labor force

Kitsap's labor force (the number of county residents working or seeking work) expanded for the fourth-straight year in 2018, topping 122,000 on average for the year, according to preliminary Employment Security statistics. Employment kept pace, with 116,264 residents working.

Kitsap's unemployment rate (the percentage of the labor force unemployed) averaged 4.7 percent in 2018, the lowest mark since 1990. The average unemployment rate for 2017 was 4.9 percent.

The shrinking unemployment rate was especially encouraging as it came alongside increases in the labor force. In past years — including a stretch from 2010 to 2014 — declines in unemployment were largely driven by a shrinking labor force, according to Employment Security data.

Employee-driven market

Job openings have grown faster than the labor market, creating a supply-and-demand imbalance that favors job seekers, according to employment experts.

"There's a lot of competition there," Blackwood with West Sound Workforce said, adding that companies are also more intent on retaining the workers they have.

Competition is most intense among firms hiring for skilled trades and in the health care industry. Naval Base Kitsap alone is hiring for more than 1,500 positions, including hundreds of entry-level trainees, while defense contractors are also hunting for help.

Hess said hiring is strong across the board, including in industries like retail, food services, construction and landscaping (enlivened by a mild winter).

"It's a good situation for the job seeker," Hess said.

Employers are adjusting to the competitive hiring environment. Some are opting to offer better pay or benefits to attract talent. Some are contracting with consultants to fill roles typically held by staff. Others are more willing to hire workers with criminal backgrounds. People with disabilities are having an easier time finding employment.

"We're seeing more people who have challenges in getting work overcoming challenges," Hess said.

Blackwood added that the tight labor market is helping to break down stereotypes and barriers. Companies that bring on employees with varying abilities and backgrounds often find the new hires enrich their workplace, she said.

"You're increasing the value of your culture," Blackwood said.

While employees have leverage in the labor market, Blackwood said employers are becoming more aggressive in monitoring the performance of workers they do hire — offering better pay and incentives, but expecting results.

"Employers are more vigilant," she said.

Help for job hunters

WorkSource, a partnership of state, local and non-profit agencies, provides training and support for job seekers and holds regular hiring events in Kitsap. For information, go to worksourcewa.com or visit the WorkSource Kitsap page on Facebook.