Seattle's economy is losing momentum as layoffs rise, wages cool, inflation creeps up and tech companies slow hiring, according to local economic experts.

Why it matters: After years of outpacing much of the country, thanks to tech wealth and high-paying jobs, a new batch of state and city forecasts suggests the region may now be unusually vulnerable to a white-collar slowdown.

The latest: The Seattle metro area unemployment rate hit 5.5% in April, up from 4.4% a year earlier, according to the Washington Employment Security Department's April jobs report.

• Statewide, Washington lost jobs for the fourth straight month with statewide unemployment climbing to 5.2%, well above the national rate of 4.3%.
• Revised figures showed the state posted a modest annual gain of 13,500 jobs in March, but by April it had flipped to an annual loss of 8,300 jobs year over year.

"The labor market has been losing momentum over the past couple years, and that trend has continued into 2026," state chief labor economist Anneliese Vance-Sherman said in the April report.

The big picture: The city's latest economic forecast suggests the region is being squeezed from multiple directions at once. They include:

Cooling construction, tariffs weighing on trade and tech company layoffs.

Between the lines: Inflation may be making the slowdown feel worse.

• A CoStar analysis shared with Axios showed Seattle wage growth has slipped below inflation again after several years of paychecks outpacing rising prices.
• Inflation is now climbing toward 4% to 5% while salary growth has cooled below 3%.

What they're saying: "Housing prices were already elevated by earlier jumps in the decade, and as energy prices spike and wage growth falters, households must make harder decisions about where to spend their dollars," Elliott Krivenko of CoStar told Axios.

• "When incomes are not keeping up, something must give."

Reality check: Seattle still has many of the advantages that have contributed to its past success: major tech employers, strong tourism and an educated workforce.

The bottom line: The city's long-running formula for success — nonstop tech hiring, soaring office demand and fast wage growth — is under strain.

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Meanwhile, Seattle may see little meaningful job growth through the end of 2027, according to a recent city forecast.

Why it matters: A prolonged slowdown wouldn't hit just workers and businesses. It also would create pressure on Seattle's coffers, which increasingly rely on taxes tied to office values, business activity and high-paying jobs for revenue, according to the city's April economic report.

State of play: The city's forecast points to warning signs of a significant structural shift in Seattle's economy.

• Tech companies are increasingly prioritizing AI investment and "streamlining operations" over headcount growth, according to the forecast office.
• That's a potentially major change for a region whose economy has long depended on aggressive hiring by major tech employers.

By the numbers:

• Seattle office values have fallen roughly 24% since 2019, while office demand sat at less than half of its pre-pandemic level at the end of 2025 — the weakest recovery among major tracked U.S. cities, according to the city forecast.
• Construction-sector taxable sales fell 4.4% in 2025 as construction activity slowed.
• Seattle's payroll expense tax forecast was revised down by more than $50 million over three years in the city's updated baseline forecast.

What we're watching: In the city's pessimistic scenario, regional employment would fall 2.7% between early 2026 and mid-2027 before recovering.

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💼 Meta laid off nearly 1,400 Washington employees — about 20% of its local workforce — in a major hit to the Seattle-area tech workforce. (GeekWire)

A chemical tank implosion at a Longview paper mill killed multiple people and injured others yesterday morning, triggering a large emergency response and ongoing recovery operation. (Seattle Times)

🏗️ Seattle-area construction employment fell by 2,200 jobs over the past year as fewer than half of U.S. metro areas saw industry job growth. (Daily Journal of Commerce)

🏠 Seattle Social Housing struck its first deal, with the public authority agreeing to pay $60 million for a 150-unit apartment building near Pike Place Market. (Capitol Hill Seattle Blog)

New research suggests that for most people, one kind gesture doesn't help just one person, but many.

Why it matters: Kindness spreads, especially as we age.

• People on the receiving end of random acts of kindness are more likely to direct kindness to strangers, according to a recent survey by Gallup and the Values-in-Action Foundation.

Of the adults age 50 or older surveyed, 72% said they felt comfortable initiating an act of kindness after being a beneficiary themselves.

• But only 40% of adults 18 to 29 said the same.
• That suggests the "pay it forward" instinct is something many of us grow into.

Broadly, the country is doing better than cynics might expect: More than 60% of Americans across every region said they'd experienced kindness multiple times in just the past week.

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👋🏼 Clarridge here. Clematis are among my favorite plants — I have seven so far, and I'm already eyeing a few more.

They're versatile, surprisingly easy to grow, and rewarding once you find the right spot.

• I usually keep a new clematis in a large pot for the first year or two so I can see how it does before committing it to the ground.
• The old gardening advice is true: they like their feet in the shade and their heads in the sun so I sometimes plant small shrubs nearby to help cool the roots.
• I train mine up trellises several inches from the house so they cover my windows, protecting me from the sun and curious gazers. A mix of evergreen and deciduous vines can also work wonders for hiding ugly views.

These two, Niobe and Vancouver Deborah Dahl, are thriving in partial shade on the east side of my house.

• Pro tip: Pay attention to mature size. I planted a gorgeous Clematis montana that now seems determined to work its way into my eaves.