Your Daily Guide

Seattle Economy Dependent on Just A Few Large Companies

Under former Mayor Bruce Harrell, Seattle’s Office of Economic Development (OED) commissioned a report examining Seattle’s economy and the potential pitfalls that could shape its future. Consulting firm Formation released the report’s findings this week. The report found our city is highly dependent on the tech sector and within that sector “just four firms in Seattle account for 25 percent of demand for software engineers.” In addition, 75% of JumpStart revenue (which the report says “has become a critical resource for bolstering the city's general fund”) comes from ten companies. In order to reduce our city’s vulnerability via the economic futures of just a few companies, the report recommends investing in the retention and growth of more “mid-sized firms,” and working to improve affordability for all Seattleites. And yesterday, Mayor Wilson signed an executive order focused on that first goal. [Office of Economic Development]

• The “missing middle:” In order to retain mid-sized businesses, which the report calls an “indicator species,” Mayor Wilson’s executive order asks OED to create the “Seattle Strategic Initiatives Fund.” That fund could invest directly in startups, with a particular focus on the “clean tech sector,” which the report says has particular growth potential. [KUOW]
• Seattle is uniquely vulnerable to AI-related job loss: The report also found “Seattle's occupational mix is 42% more exposed to AI disruption than the national average.” And because Seattle’s JumpStart tax relies on just about 100 firms, the city’s fiscal health can easily shift. While our business taxes actually aren’t high compared to peer cities, the report argues the taxes we do have grew quite rapidly and discourage tech hiring. To address this, it recommends focusing on our city’s key influences in clean technology and maritime industries.
• Addressing affordability: The report found that “the affordability crisis for families is the same thing creating affordability pressures for businesses, in the form of high labor costs.” In particular, it says “a Seattle worker at the 25th percentile of the labor market earns about $5 more per hour than their Austin counterpart, yet faces a rent gap that is $450 per month larger.” And “childcare costs rose 25 percent over the past decade, faster than almost every peer metro.” It also says our “neighborhood-serving businesses are increasingly squeezed” by impossibly thin margins. While this likely isn’t new to anyone reading this newsletter, it does affirm that in order to protect small to mid-sized businesses in Seattle, our mayor should continue to focus on reducing the cost of childcare and building affordable family housing. [Office of Economic Development]

🚨 ICE flights surge: County records reveal that since late August, nearly 500 people have been flown out of Boeing Field. Detainees told KUOW they’re given little notice of relocation and often prevented from informing their families or lawyers. To learn more about what flight monitors are seeing, listen to our conversation with La Resistencia’s Josefina Mora-Cheung. [KUOW]

📽️ Georgetown’s Super 8 Film Fest: This weekend 61 short films, all shot in or around the Duwamish River Valley, will show at the Georgetown Steam Plant. GS8 runs a training program that gives local filmmakers Super 8 cameras and lots of creative support. Now, the film festival will reveal the films to the public along with awards like Filmmaker's Choice, People's Choice, and Best Music Video. Go check it out! [South Seattle Emerald]

🕷️ Spider cuffing season is upon us: Have you started seeing spiders and webs everywhere? Don’t worry, they’re just… horny?! Axios spoke to Rod Crawford of the Burke Museum, and he says it's giant house spider mating season. They’re apparently looking for a mate before the winter (just like the rest of us). And though the large adults can span up to 4 inches, they're harmless. [AXIOS Seattle]