Seattle looks beyond Big Tech to build its next economy
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Seattle has become dangerously dependent on a handful of tech giants that powered the city's decades-long economic boom, according to a new city-commissioned report.
Why it matters: The sweeping analysis says Seattle's tech success has left its jobs, tax base and economic future vulnerable to the fortunes of just a few companies.
Driving the news: Mayor Katie Wilson released the 127-page report Wednesday and signed an executive order aimed at keeping businesses here while diversifying the economy.
- The order calls for a business and labor task force, a new economic development fund and faster permitting.
- Wilson wants the city to lean into clean tech, life sciences, and the space and maritime industries.
What they did: Economists crunched regional data and interviewed dozens of business executives, civic leaders and national experts, benchmarking Seattle against comparable metros.
By the numbers: Just four companies account for 25% of software engineer job postings in Seattle, compared with 18 companies in San Jose and 39 in San Francisco, per the analysis.
- 10 companies generate 75% of Seattle's JumpStart payroll tax revenue, nine of them in tech-related industries.
- Meanwhile, Amazon and Microsoft have cut more than 10,000 Seattle-area jobs since 2023.
Yes, but: Seattle remains a tech powerhouse, home to 23% of the nation's AI engineers — second only to the Bay Area — and its tech employees generate more than twice the national average in economic output per worker, according to the report.
The bottom line: The goal isn't to replace tech. It's to hang onto the companies and talent Seattle already has while building an economy that doesn't depend quite so heavily on a handful of them.