Kitsap County had 2nd highest wage growth in the U.S.
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Kitsap County wages grew faster last year than almost any other large county in the country, according to recent government data, but small businesses still must compete with higher-paying Seattle.
Details: The county west of Seattle saw wages jump 12.7% in 2022, behind only Midland, Texas, a key oil and gas hub where salaries increased 13.9%, Axios' Matt Phillips and Emily Peck write.
Why it matters: Higher wages are a boon for workers but a hardship for some small businesses struggling to compete with Seattle in a tight labor market, according to David Emmons, president and CEO of the Greater Kitsap Chamber.
What they're saying: Even after cutting into slim margins to lure workers back from Seattle, "there probably isn't a business in town that isn't looking for employees," Emmons told Axios.
Zoom in: Among key contributors to the county's wage growth was the increase in the state's minimum wage, Jim Vleming, a regional labor market economist with the Washington State Employment Security Department, told Axios. A ballot measure approved by Washington voters in 2016 ties minimum wage increases to inflation.
- Competition with King County for workers is also part of the mix, said Vleming.
- That's because the minimum wage in Seattle — which jumped to $18.69 an hour in January — is even higher than the current statewide rate of $15.74.
Kitsap County's largest employer is the federal government through Naval Base Kitsap, which employs thousands of military and civilian personnel.
- Inflation is also factored into federal wages, which have thus gone up, Emmons told Axios.
Yes, but: King County saw stronger wage growth than Kitsap from 2019 to 2021 — and King County's average wages still far surpass those in surrounding counties, according to ESD's most recent complete wage data.
By the numbers: In King County, the average wage rose from $93,300 in 2019 to $115,535 in 2021.
- In that same timeframe, Kitsap saw an increase from $53,945 to $61,475.
- Pierce wages rose from $54,270 to $61,135, while Snohomish wages increased from $63,480 to $69,120.
The big picture: The strong demand for workers drove Washington’s average annual wage up by 7.5% in 2021 to $82,508, the state's second-highest increase in more than two decades, according to ESD.