Washington State’s latest economic forecast, released by the Economic & Revenue Forecast Council (ERFC), paints a cautious picture for the months and years ahead.

Over the past year, the state’s employment growth has been extremely slow, rising by only 0.1%, far below the national average of 1%. Most industries are shrinking, with government and healthcare being the only sectors showing growth.

Looking forward, the forecast predicts continued slow growth through 2029, with annual job increases remaining under 1%. Historically, growth below 1% has been associated with economic downturns, and it also enables the state to access its constitutional rainy day fund if needed.

Despite the overall slowdown, there are bright spots. Certain areas, including parts of the Puget Sound region, continue to see stronger employment gains, demonstrating that pockets of opportunity remain.

On the revenue side, Washington’s state collections are running slightly ahead of expectations, with $128 million more collected than forecast in June. The upcoming September forecast will weigh this stronger revenue against the slow job growth.

For residents of the 12th Legislative District, these trends underscore the importance of implementing innovative economic policies, investing in workforce development, and supporting local businesses to strengthen the state’s economy and create jobs.

The full ERFC report is available here.