Seattle’s latest economic and revenue forecast offers a mixed picture for our region, and an important reminder about the choices we make to support a healthy economy.
The October 2026 Forecast Update shows that the regional labor market continues to be weaker than the nation overall. Construction is in a downturn, trade employment has been declining, and demand for workers in the technology sector remains weak. The baseline forecast expects little regional employment growth in the near term, with total employment not moving beyond pre-pandemic levels until 2028. [seattle.gov]
Seattle’s revenue picture remains relatively stable. The October forecast projects $8.8 million in additional revenues across 2026–2028, excluding grants and fund balance transfers, compared with the proposed budget forecast. General Fund revenues are projected at approximately $2.10 billion in 2026, $2.07 billion in 2027 and $2.16 billion in 2028. Business & Occupation tax revenue is also expected to grow, from $473.3 million in 2026 to $522.1 million in 2028. [seattle.gov]
For the business community, the bigger story is what’s happening underneath those numbers.
A strong revenue outlook depends on a strong economy. When businesses are able to invest, hire, build and grow, our entire community benefits. When employers face persistent economic headwinds, that ultimately affects workers, families and the resources available for public priorities.
This forecast should reinforce a simple goal for Seattle: make our region a place where businesses of all sizes can confidently invest and grow.
That means keeping affordability and competitiveness at the center of policy decisions, reducing barriers to doing business, and recognizing that a healthy business climate and a healthy city go hand in hand.
As we look toward 2027, the Chamber will continue working with policymakers and our members to advance solutions that strengthen Seattle’s economy and create the conditions for long-term, inclusive growth.
By Lars Erickson, Senior Vice President of Public Affairs and Communications, Seattle Metro chamber