The two halves of 2010 were like two different job markets, with unemployment here peaking at 11.2 percent in February, but private-sector employers increasing their hiring in the second half of the year, says Doug Tweedy, regional labor economist for the Washington state Department of Employment Security.

By October, the unemployment rate in the Spokane area had fallen to 7.6 percent, and even though the hiring increases were small, "they're still increases," Tweedy says.

For 2011, he expects private-sector hiring to strengthen, though modestly, and he projects that the unemployment rate will come down from its average through November of this year of 9.3 percent. Yet, the recovery will proceed slowly, and he can't project how low the unemployment rate will fall, or how many jobs might be added here, Tweedy says.

With the state budget in disarray and the federal government looking at deficit reduction, "We know that government employment will decrease," Tweedy says. "We're kind of concerned that the government layoffs will hinder that private-sector increase." Government, including education, is the biggest employer here, with 35,000 employees.

That several industries or subsectors of industries have added workers makes him confident that private-sector hiring growth will continue, Tweedy says. Industries that have added workers include professional and technical employers, waste management and remediation, advanced manufacturing, transportation, energy and technology, and health care, he says.

"Once the markets start recovering, there's a backlog of demand," and as orders increase, employers will add yet more workers, Tweedy says.

Nancy Nelson, president of Humanix Staffing & Recruiting, says that if the fourth quarter of 2010 is any indication, "I see positive economic growth" in 2011. She says demand for temporary workers has grown in the second half of 2010, and demand for permanent staff members is beginning to grow now.

"We've added a contracting-consulting division" to find contract employees and consultants who can provide expertise to clients on a temporary basis, Nelson says. "We are qualifying and screening those contractors and consultants for our client companies to make sure they match up. We've had a very good response from our clients."

Humanix also has added a permanent-placement manager. "You need to have those connections with candidates," Nelson says. "Permanent placement will come back. Companies have downsized so much. When you have an extended recession, you have to learn how to 'lean up' and do more with less."

Companies will be conservative in their hiring, Nelson says. "There is a little bit of uncertainty with taxes." Not all of next year's rates have been announced yet.

Meanwhile, she says the percentage of workers who are starting to look for better jobs is high, and with companies having downsized, reduced benefits, and frozen wages, "a strong engagement is important" between employers and their workers.

Richard Ripley