Recent reporting highlights signs that the Seattle region’s long period of rapid economic expansion may be easing. Economists at the Puget Sound Regional Council reported that the four-county-region of King, Pierce, Snohomish, and Kitsap lost 12,900 jobs in 2025. Excluding the pandemic, this marked the first annual job decline since 2009. Over the past three years, job growth has averaged about 4,100 positions annually, a sharp contrast to the 2010s when growth averaged nearly 46,750 jobs per year during the peak of the tech boom.
The slowdown is accompanied by high profile layoff announcements from major employers such as Amazon, Expedia, Meta, and Microsoft. While these announcements have raised concern, reporting suggests that many of the job reductions are spread globally and regionally rather than concentrated solely in Seattle. For example, only a portion of recent tech layoffs occurred within the city or even within Washington state.
At the same time, some cost pressures appear to be easing. Average rents in Seattle declined by about $20 per month for a one-bedroom apartment, or roughly 1% year over year, according to rental data cited in the article. Office lease costs also fell 4.9% in the most recent month, placing Seattle among the largest declines nationally. These shifts suggest modest relief on affordability, even as they reflect softer economic conditions.
The articles also point to growing attention on artificial intelligence and its potential impact on employment. Research referenced from Microsoft indicates that younger workers in jobs more exposed to AI tools have seen notable employment declines, raising questions about future workforce transitions and income inequality. As the region adjusts to slower growth, discussions around economic development, workforce readiness, and long-term competitiveness are likely to take on greater importance for policymakers and businesses.
