Image: Former Gov. Chris Gregoire, at podium, gathers politicians, business leaders, and others for comments and a press conference announcing the launch of a new economic task force. (Ken Lambert / The Seattle Times)
A new regional economic initiative is calling for coordinated action as the Puget Sound economy faces slower job growth, rising costs, and increased competition from other regions.
Challenge Seattle recently released Keeping Puget Sound Strong: A Regional Plan for Jobs and Opportunity and helped launch the Partnership for a Competitive Puget Sound. The effort focuses on King, Pierce, Snohomish and Kitsap counties, which lost nearly 7,000 jobs in 2025. The decline marked the region’s first annual employment loss in more than two decades outside a major recession or pandemic, according to the initiative.
The report identifies several factors affecting the regional business climate, including regulatory requirements, permitting processes, housing and childcare costs, and coordination among governments and businesses. It also points to slower business creation, reduced venture capital investment, and employment declines in downtown Seattle.
At the same time, the region retains significant economic assets, including technology and manufacturing industries, a major port, research institutions, and a large workforce.
The new partnership is proposing 20 recommendations focused on improving the predictability of the business environment, streamlining permitting, reviewing regulations, strengthening workforce partnerships and supporting key industries. It is also encouraging local governments, businesses, and other stakeholders to approach economic development as a regional effort rather than as separate jurisdictions.
Challenge Seattle and its members plan to contribute $1 million to Greater Seattle Partners to support implementation and publicly track progress. The initiative joins other economic development efforts launched this year by state and local leaders.
