(The Center Square) – A recent survey by the Association of Washington Business shows cautious optimism among state employers, while a new study by WalletHub found that Washington employers aren’t struggling to find workers.
AWB’s most recent quarterly survey, based on 441 responses collected by email from business owners and operators across the state from Jan. 16 through Jan. 30, hints at a more upbeat take on the economy.
According to the survey, 17% of respondents expect a recession in Washington in the next year, down from a quarter who said that a year ago. Almost half of respondents were optimistic that their businesses would see growth in the next six months.
However, respondents also said their five biggest challenges are government regulations, the overall tax burden, inflation, the cost of health care and a lack of qualified workers.
The effects of the COVID-19 pandemic remain a concern as well, with 37% of respondents saying their business costs have gone up 21% to 30% since January 2021. More than 75% said their business had experienced rising energy costs in the past two years.
Manufacturers and agricultural producers were asked about tariffs in light of President Donald Trump’s recent tariffs aimed at Canada, Mexico and China. Trump says these tariffs will boost the U.S. economy and protect it from illegal immigration and the flow of drugs.
More than half – 54% – of respondents said they were concerned that potential tariffs or retaliatory tariffs would negatively impact their business.
“Washington employers are feeling slightly more confident about their businesses in the coming year, but it’s clear that rising costs remain a major concern,” AWB President Kris Johnson said in a news release. “Employers need certainty and predictability. We urge the Legislature to find ways to support businesses and grow the economy this year and not add to years of skyrocketing costs by passing new taxes and regulation.”
There was some more good news on Evergreen State’s economic front.
According to a new study by personal finance company WalletHub, Washington employers have the third-smallest hiring struggle in the U.S. Only California and Hawaii fared better than Washington.
To see where employers are having the most trouble hiring new workers, WalletHub compared all 50 states and the District of Columbia based on the rate of job openings for both the latest month – January – and the last 12 months.
The job openings rate in Washington during January was 3.8%, while the job openings rate in the past 12 months was 4.17%
“This suggests a relatively stable workforce with low turnover, which allows businesses to focus on growth rather than constant rehiring,” WalletHub analyst Chip Lupo told The Center Square in an email.
He went on to explain why Washington did so well in the survey.
“Washington’s high ranking reflects a better alignment between job openings and available talent, competitive wages, and strong economic conditions that help retain workers,” Lupo said. “While hiring remains a challenge in some sectors, Washington’s labor market dynamics provide it with a competitive advantage, making it easier for businesses to fill positions compared to most other states.”
