A new economic report from Moody’s Analytics places Washington among more than twenty states showing signs of recession or approaching one. The analysis highlights a national pattern of slowing job growth, with only a few industries continuing to add positions. Sectors such as construction, manufacturing, technology, finance, government, and professional services are noted as losing jobs.
Washington is projected to see minimal job gains in 2025 and none in 2026, raising concern among business and policy leaders. The Association of Washington Business recently surveyed employers who reported declining optimism and significant worries about the year ahead. Respondents cited the cost of taxes and regulations, healthcare expenses, and broader financial pressures as top challenges.
As the holiday season approaches, business leaders say consumer spending will play an important role in shaping early economic momentum for 2026. They also emphasize the need for policies that better support employers and help strengthen the business climate.
State leaders continue to prepare for upcoming budget discussions. Gov. Bob Ferguson said he plans to propose a balanced budget that maintains essential services while investing in priority areas.
