Metro Economic Outlook: Seattle
A talented workforce can be credited for retaining and
attracting business in the Seattle region, but employers
say they need more good help in order to keep the
local economy humming.
“Talent continues to be the issue of top concern with
employers,” said Suzanne Dale Estey, president and
CEO of the Economic Development Council of Seattle
&King County, a public/private partnership that
promotes business growth. “There’s some movement
to support career and technical education, because in
many regards, it’s been decimated in the secondary
schools.
“About two-thirds of all jobs will need some form of
post-secondary education. We need to make sure we
Unemployment rate
12
10
8
6
4.6
4.3
U.S.
Seattle Metro
4
2
0
Source: U.S. Bureau of Labor Statistics (November 2016)
keep kids in school that otherwise might drop out.
They’re a huge part of the pipeline.”
SEATTLE METRO: VITAL STATS
Total working age population: 2,363,956 out of a
total population of 3,733,580
Number of households: 1,437,222
Consumer price index: 256.941 (goods and services
that cost $100 in 1982-1984 cost $256.94 in October
2016)
Percentage of local residents with bachelor’s
degrees: 26.2
With graduate or professional degrees: 15.0
Workers in STEM industries: 51.5 per 1,000
residents
Sources: U.S. Census Bureau (2015), U.S. Bureau of Labor
Statistics (October 2016), American Institute for Economic
Research (2015)
Last updated on 1/1/2017
The Seattle metro area spans three counties in
northwestern Washington. In Seattle’s home of King
County alone, there are nearly 500 companies and
more than 45,000 employees in the aerospace sector.
Boeing, the largest such employer, has seen
heightened global demand for its 737 MAX airplane,
and the company is on pace to construct 57 planes per
month at its local plant in Renton by 2018.
Aside from Redmond-based Microsoft, some of the
region’s other notable Fortune 500 interests include
retailers Amazon.com, Nordstrom and Starbucks, all
three of which are headquartered in Seattle.
Amazon in particular is in high growth mode. The
company had about 500,000 square feet of office
space in the region in 2010, but expects to have nearly
Unemployment and most CPI data updated monthly. Other data updated once annually as it becomes available.
10 million square
feet of space by 2019
when construction
on a third office
tower in downtown
Seattle is complete.
Labor force makeup
Construction
Mining and logging
Manufacturing
Trade, transportation and utilities
Information
Financial activities
Professional and business services
Education and health services
Leisure and hospitality
Other services
Government
Total nonfarm
103.5
1
185.6
363.4
101.3
98.2
266.6
257.8
183.3
69.2
272.5
Educational and
medical centers
provide one out of
every six jobs in the
City of Seattle,
according to a report
1902.4
by the city’s
0
500
1,000
1,500
2,000
downtown business
association.
Number in thousands
Elsewhere, more
Source: U.S. Bureau of Labor Statistics (January 2016)
than 100 employers,
by Dale Estey’s
level of talent that is available,” Dale Estey said.
estimate, have also established engineering centers in
the Seattle region in recent years. Among the highWith the help of $40 million in support from
profile companies are Google, Staples, Best Buy and
Microsoft, the University of Washington has a
Go Daddy.
partnership with Tsinghua University in China that is
designed to develop local tech talent. The “Global
“These companies are not headquartered here, but they
Innovation Exchange” is an institute based in Seattle
are setting up digital offices here based on the high
that will open in the fall of 2017 and allow students,
faculty and professionals to
collaborate on technology projects.
Working age categories
218,247, 9%
245,758, 10%
249,203, 11%
20 to 24
25 to 34
604,182, 26% 35 to 44
45 to 54
55 to 59
519,916, 22%
60 to 64
526,650, 22%
Source: U.S. Census Bureau (2015)
And in the future, mobility in the
congested Seattle region will
improve. Voters approved a $54
billion package in November 2016 to
expand the light rail system. The
project will add 62 new miles of
track.
“It’s a terrific catalyst for new
development near the stations, and
workers will be able to get to their
jobs and families more easily,” Dale
Estey said. “That’s another variable in
quality in life.”
Last updated on 1/1/2017
2
Employee Benefits Data
Employers offering consumer-driven health
plans
25%
19%
20%
15%
15%
10%
5%
Employers in the Seattle
metro area are less likely to
offer consumer-driven
health plans compared with
the national level, by a
margin of 4 percent.
0%
U.S.
Seattle Metro
Employers offering domestic partner
benefits
75%
80%
70%
60%
50%
40%
30%
20%
10%
0%
50%
U.S.
They are substantially more
likely to offer domestic
partner benefits, by a
margin of 25 percent above
the national level.
Seattle Metro
Source: SHRM Health Care Benchmarking Database (2016)
Retirement
Employee 401(k) participation rate
80%
70%
66%
70%
60%
50%
40%
30%
20%
The rate of 401(k)
participation in the Seattle
metro area’s workforce is
slightly higher than the
national level, by a margin of
4 percent.
10%
0%
U.S.
Seattle Metro
Source: SHRM Retirement & Welfare Benefits Database (2016)
Last updated on 1/1/2017
3
Income and Turnover Data
Overall turnover rate
25%
19%
20%
18%
15%
10%
Turnover in the Seattle
metro area’s workforce is
slightly lower than the
national rate, by a margin of
1 percent.
5%
0%
U.S.
Seattle Metro
Source: SHRM Human Capital Benchmarking Database (2016)
Median household income
$75,331
$80,000
Median household
income in the Seattle
metro area is much
higher than the national
level, by nearly $19,000
annually.
$70,000
$60,000
$56,516
$50,000
$40,000
$30,000
$20,000
$10,000
$0
U.S.
Seattle Metro
Source: U.S. Census Bureau (2015)
Per capita income
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
$39,152
$29,979
U.S.
Per capita income in the
Seattle metro region is
also higher than the
national level, by more
than $9,000 annually.
Seattle Metro
Source: U.S. Census Bureau (2015)
Last updated on 1/1/2017
4
Top Management Salaries Data
Median salaries, top management
Median salaries for
top management
positions in the
Seattle metro area
are generally lower
than national
levels.
$206,000
$322,100
*Top legal executive
$280,200
$280,500
**Chief information officer
$201,600
$265,000
*Top HR executive
*Pacific Northwest
states sub-region
median data
$230,800
$348,600
*Chief financial officer
$337,000
*Chief executive officer
$650,000
$0
$200,000
Seattle Metro
$400,000
$600,000
$800,000
**West Coast region
median data
U.S.
Source: Willis Towers Watson Data Services 2016 Survey Report on Top Management Compensation
Project lead:
Project contributors:
External contributors:
Copy editing:
Joseph Coombs, Senior Analyst, Workforce Trends, SHRM
Shonna Waters, Ph.D., VP of Research
Suzanne Dale Estey, Economic Development Council of Seattle & King County
Katya Scanlan, copy editor
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Last updated on 1/1/2017
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