Unemployment ticked downward in Washington state in February as hiring picked up. The changes were small, but the job market seems to have “turned the corner,” according to the State's Employment Security department. 

Washington's chief labor economist Dave Wallace, spoke about the fresh data released Tuesday. Wallace says the hard-hit construction industry showed surprisingly strong gains regionally and nationally:

One of the best known Northwest brands is on the verge of bond default or bankruptcy according to financial analysts. Gourmet food retailer Harry & David is one of the biggest employers in southern Oregon. It also has a network of anxious suppliers around the region.

You may have heard Washington has an earthquake fault similar to the one that devastated Japan.  While there are many fault-lines criss-crossing western Washington, the only one that bears a strong similarity is under the ocean, parallel to our coast-line.  It’s called the Cascadia subduction zone. 

Snohomish County Prosecutor Mark Roe says he'll seek the death penalty if Byron Scherf is convicted of aggravated murder in the death of Monroe prison Corrections Officer Jayme Biendl.

In announcing his decision Tuesday in Everett, Roe said jurors "should have the opportunity of imposing the ultimate punishment if they see fit."

Biendl was strangled Jan. 29 in the prison chapel.

A southern Oregon county battered by last Friday's tsunami is turning to the state and federal government for assistance. High waves caused heavy damage the harbor in Brookings. One local official hand-delivered a request for assistance to the state capitol.

Seattle Mayor Mike McGinn says he thinks the city’s waterfront viaduct poses an earthquake risk and should be taken down next year.

That's a good four years before the viaduct's planned replacement -- a deep-bore tunnel under downtown -- would be ready.

Making headlines around the Northwest this morning:

• Boeing Readies for 747-8 First Flight
• Dozens of Mudslides Block Rail Lines
• Microsoft's Zune Sails Away

First Flight Plans for 747-8

Boeing's newest passenger jet could make its maiden voyage as early as Sunday.  The Herald of Everett Michelle Dunlop reports the  only obstacles are some tests on taxiing the plane and a thumbs-up from the Federal Aviation Administration:

"The team continues to do great work to get the 747-8 Intercontinental into the air," said Elizabeth Lund, vice president and general manager, 747 program. "It'll be a great day for the team when the airplane flies."

In the run-up to first flight, Boeing conducted flight simulation tests last weekend. The freighter version of the 747-8 is already in the air for tests, Dunlop writes. Initial deliveries of the freighter jets are scheduled by year's end.

Are you losing sleep over your pension fund?

Public and private pension funds are under a lot of stress due to the Great Recession. The Washington Post's Peter Whoriskey recently reported state and local pensions may be underfunded by $1.5 trillion more than previously thought. NPR has reported the states are facing a $3 trillion pension shortfall.

But financial commentator Greg Heberlein tells KPLU's Dave Meyer the situation may not be as bad as it looks.Greg says there's cause for concern, but he's optimistic. 

We have learned of an embezzlement involving taxpayer dollars in case with an unlikely victim: Washington's Superior Court Judges.

No charges have been filed, but a federal investigation is underway into years of alleged theft at the Superior Court Judges' Association of Washington.

Federal prosecutors have filed a lawsuit to prevent an anti-abortion protester from blocking access to a medical clinic in Lynnwood.

According to the U.S. Department of Justice complaint, John C. Kroack walked into a Lynnwood health clinic on Jan. 7, 2010, became agitated as he talked about abortion and tried to force his way into one of the exam rooms. Prosecutors say a nurse had to hold her body against the door to keep him from breaking it down.