Southwest Washington’s labor market is incredibly diverse, vibrant, and dynamic. Each of its three counties, Clark, Cowlitz, and Wahkiakum, has its own unique specialties and charms.
In 2024, there were just over 220,000 jobs in Southwest Washington. About 81% of these were in Clark County, 18.7% were in Cowlitz, and 0.3% in Wahkiakum. Public sector employment made up a large part of all three counties, predominately in state and local education.
In fact, in Wahkiakum County, public sector jobs accounted for about 37% of all employment. Tourism focused industries such as retail trade and accommodation and food services also had a strong showing. In terms of specialization, agricultural industries punch above their weight here. They make up about 8% of all jobs in Wahkiakum County, compared to 2% in Cowlitz and less than 1% in Clark.
The two larger counties in the region share more similarities, but there are still stark differences in industrial specialization. In Clark County, health care and social assistance is the largest private industry. This follows a similar trend we’ve seen statewide and nationally, as an aging population increasingly demands medical services.
In contrast, Cowlitz County’s largest industry is manufacturing. Manufacturing comprised over 7,000 jobs in 2024, paying out over $600 million in total wages. Within this industry, paper manufacturing and food manufacturing took the largest shares of jobs.
Clark County is no slouch here either. Manufacturing is the fifth largest industry, with 14,000 jobs and over $1 billion in total wages. However, the industry here leans more heavily toward computers and electronics, machinery, metal products, and chemical manufacturing.
Source: Employment Security Department/Labor Market Information and Research Division, Covered Employment (QCEW).
The region has changed significantly in the last decade. Clark County has seen sharp employment growth, adding an estimated 39,000 jobs (a 26% increase) between June of 2015 and June of 2025. This was driven by large expansions to private education and health services, professional and business services, leisure and hospitality, and finance. Accompanying these changes was a massive boom in construction. The industry added 8,400 jobs over the decade, a nearly 80% increase.
Growth has slowed since then, adding only 800 jobs (0.4%) between June 2024 and June 2025. Construction has been inconsistent, and the industry lost about 900 jobs over the year. While we continue to see some growth from private education and health services, professional and business services, and finance, industries such as leisure and hospitality are lagging. Government employment, another big part of the last decade’s growth, also seems to have reversed trend this year.
Source: Employment Security Department/Labor Market Information and Research Division, Washington employment estimates (WA-QB & CES).
An ongoing challenge in all three counties is the cost of living. Clark County jobs had the highest average annual wages in 2024 at $68,840 per year, compared to $67,577 for Cowlitz, $45,042 for Wahkiakum, and $92,407 statewide. A big part of this discrepancy is geographic mix; the state average is heavily influenced by high-paying tech jobs in King County. However, rural counties have also seen an increasing proportion of jobs going to industries that pay relatively less, such as health care and social assistance and government.
So where does the future of Southwest Washington lie? Each year, the Employment Security Department produces employment projections by industry and occupation. These projections, based on historical trends and macroeconomic factors, help guide local investment decisions and form the basis of tools such as our Occupations in Demand list.
In our most recent data, the Southwest region is projected to grow to 250,000 jobs between 2023 and 2033. That’s about 1% growth per year. Private education and health services are expected to add about 7,000 jobs, or 2% per year That’s the most of any major industry. However, we expect little to no growth in industries such as manufacturing.
Source: Employment Security Department/Labor Market information and Research Division, Employment Projections.
Of course, no projections can account for major economic shifts. Job growth has slowed in the last few months, though the unemployment rate remains low. While it may take time for national trends to show up in local data, it’s clear that the very competitive labor market of the post-pandemic era has passed. It’s been a decade of rapid change in Southwest Washington. What changes will await in the next decade is an open question.
This blog was written by Emily Robertson, Regional Labor Economist for Southwest Coastal Washington with the Washington Employment Security Department, in collaboration with Workforce Southwest Washington.
