As economic uncertainty looms due to weak job growth and the potential impact of new tariffs, The Seattle Times editorial board commended the Seattle City Council for adopting the most conservative revenue forecast provided by the Office of Economic and Revenue Forecasts.
The board pointed to troubling signs in the local economy. Employment in the Seattle area grew by just 0.8% last year, well below the national average of 1.3%. The region also lost more than 5,000 construction jobs over the past year, a decline linked to the glut of commercial office space in downtown Seattle. Meanwhile, government jobs led the region’s employment growth in 2024.
The City’s JumpStart payroll tax on large employers underperformed last year, bringing in $46.7 million less than anticipated. Projections now show the tax falling short by $81 million in 2025 and $86 million in 2026.
The editorial board warned against overreliance on taxing major employers, writing: “It should not be lost in the discussion that Seattle must remain competitive with the region and other states, or it will hemorrhage good-paying jobs.”
