Seattle’s economyis losing momentum as layoffs rise, wages cool, inflation creeps up and tech companies slow hiring, according to local economic experts.
Why it matters: After years of outpacing much of the country, thanks to tech wealth and high-paying jobs, a new batch of state and city forecasts suggests the region may now be unusually vulnerable to a white-collar slowdown.
The latest: The Seattle metro area unemployment rate hit 5.5% in April, up from 4.4% a year earlier, according to the Washington Employment Security Department’s April jobs report.
- Statewide, Washington lost jobs for the fourth straight month, per the state report, with statewide unemployment climbing to 5.2%, well above the national rate of 4.3%.
- The tone of the April report painted a notably weaker picture than March’s report.
- Revised figures showed the state posted a modest annual gain of 13,500 jobs in March, but by April it had flipped to an annual loss of 8,300 jobs year over year.
“The labor market has been losing momentum over the past couple years, and that trend has continued into 2026,” state chief labor economist Anneliese Vance-Sherman said in the April report…