From my desk to yours, welcome to the October edition of The Talent Pulse. This month I’m covering the latest Washington state
employment numbers, five hiring trends worth knowing whatever industry you’re in, and a note from my desk on getting ahead of
2027 planning.
STATEWIDE MARKET SNAPSHOT – WASHINGTON STATE: Where Hiring Stands
Unemployment slips to 4.8%, but a shrinking labor force is part of the story
Washington’s unemployment rate fell to 4.8% in September, the third straight monthly decline and a welcome shift from the slow climb of the past couple of years. It is still slightly above where it stood a year ago (4.7%), and above the national rate of 4.2%. The state’s chief labor economist points out that part of the drop reflects fewer people counted as unemployed rather than more people finding work. The number of unemployed Washingtonians fell from roughly 197,400 in August to about 193,000 in September, while the labor force sits about 11,500 smaller than a year ago.
Government drove the monthly loss
Washington shed an estimated 15,400 jobs in September, but 10,400 of those were in government, with private employers down about 5,000. Within the private sector, private education and health services fell by 4,900, transportation, warehousing and utilities dropped 1,800, and manufacturing lost 1,700, most of it in food manufacturing (down 1,400).
On the other side of the ledger, the state has still added 9,200 jobs over the past year, a 0.3% gain.
Bright spots for the industries I work in
Construction added 1,500 jobs in September, led by specialty trades contractors (up 1,800), while professional and business services gained 1,800, including 800 in professional, scientific and technical services, the category that covers much of the engineering, architecture and environmental consulting world.
Information also added 1,400 jobs, with none of that growth coming from software publishing.
BEYOND THE NUMBERS: Five Hiring Trends Worth Knowing
Beyond the monthly jobs numbers, a few trends are worth keeping on your radar as you plan for 2027. From pay budgets and talent shortages to candidate verification and retention, here are five things that could shape your next hiring decision.
01 | Fake candidates are a real risk
Gartner predicts that by 2028, one in four job candidates will be fake, thanks to AI-generated profiles and deepfakes. A live video step and a quick identity check before an offer are fast becoming standard practice.
02 | 2027 raise budgets are taking shape
Payscale projects average base pay increases of about 3.5% in 2027, up slightly from 3.4% this year, with roughly 3 points earmarked for merit. Competition for talent and shortages are among the top reasons employers plan bigger budgets.
03 | Construction’s talent gap keeps growing
Associated Builders and Contractors estimates the industry needs about 349,000 new workers in 2026 and 456,000 in 2027, driven by retirements and demand from data centers and semiconductor plants. It helps explain why skilled construction talent stays competitive even in a softer market.
04 | The candidate pool is not growing
Washington’s labor force was about 4.05 million in September, roughly 11,500 smaller than a year earlier. With fewer people in the workforce, the supply of available candidates is tighter than the unemployment rate alone suggests.
05 | The “Great Detachment” is a retention risk
Gallup’s 2026 State of the Global Workplace report describes workers who are staying put but report low satisfaction with their employer and are watching for openings. For employers, it is a retention risk hiding in plain sight. For anyone hiring, it is a reminder that strong candidates are often open long before they ever apply.
A NOTE FROM MY DESK
October is when the conversation shifts from what is happening this quarter to what the next year is going to look like. Budgets are being finalized, headcount plans are being drawn up, and the pay ranges you set now will shape how competitive you are in the first half of 2027.
My advice, in any industry: do not wait until a role is open to find out whether your offer is competitive. Check your pay ranges against the market now, decide which roles you cannot afford to leave vacant, and start building relationships with strong people early. And with fake applicants on the rise, add a simple verification step to your process before it becomes a problem rather than after.
If you would like a second set of eyes on your 2027 hiring plan, a pay range you are unsure about, or a search that has stalled, I would be glad to help. No pressure and no pitch, just a real conversation about what you are seeing in your corner of the market.
Here whenever you need me.
Alissa
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