The economic expansion in Washington state is showing signs of deceleration, according to the latest assessment by the Economic and Revenue Forecast Council. During a session held on Tuesday, officials noted that while the overall outlook remains stable, momentum has weakened notably. Projections now indicate that employment will rise by only 0.3% in 2025, down from a previously estimated 0.5%. This adjustment reflects a cooling labor market, with job openings having settled back to levels observed before the pandemic. Unemployment is expected to climb gradually, approaching 5% by 2027.
Dave Reich, representing the council, emphasized the softening conditions in hiring and workforce participation. He described recent labor data as significantly weaker than anticipated, marking a shift from earlier optimism.
Additionally, Reich pointed to emerging risks tied to federal trade policy. Although current tariffs have had limited effect on the state’s economy, upcoming price adjustments are likely as import costs begin to rise in the next few months. Consumers and businesses alike may feel the impact, particularly in sectors reliant on imported goods.
More details about the forecast are available on the council’s official website.
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Washington’s economic growth slows with labor market concerns
WASHINGTON – The state’s economic outlook remains mostly unchanged, but growth is slowing. This update comes from the State’s Economic and Revenue Forecast Council. n nIn a meeting held Tuesday, the council projected that slower economic growth would persist. Job openings have returned to pre-pandemic levels, but the state now expects employment to grow by just 0.3% this year, a decrease from the earlier forecast of 0.5%. Unemployment is also anticipated to rise, reaching nearly 5% by 2027. n nDave Reich of the Washington Economic and Revenue Forecast Council highlighted changes in the labor market. n n“I think the biggest change since we saw you last has been sort of the degradation in labor markets. And likely heard recent data has been very soft, much, much weaker than we had expected,” he said. n nReich also noted growing concerns over federal tariffs. While their impact has been minimal so far, price increases are expected in the coming months. n nReaders can find additional information on the economic outlook on the Economic and Revenue Forecast Council’s website.