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Seattle’s economy is flashing some serious warning signs — and the latest numbers coming out of the city are difficult to ignore.
New analysis from the Downtown Seattle Association shows Seattle lost more than **18,000 jobs between 2024 and 2025**, with roughly **13,000 of those losses concentrated in the downtown core**. That means more than two-thirds of the city’s job losses occurred downtown, even as nearby cities including Bellevue, Tacoma and Everett recorded employment growth.
The numbers arrive at a critical moment for Seattle Mayor Katie Wilson, whose proposed budget is now before the Seattle City Council. Business leaders and downtown stakeholders are increasingly asking what City Hall can do to reverse the loss of employers, workers and economic activity from Seattle’s urban core.
At the same time, Seattle is preparing for another major increase in its minimum wage. Beginning January 1, the city’s minimum wage is scheduled to rise from **$21.30 to $22.14 per hour**, keeping Seattle among the cities with the highest minimum wages in the United States.
Supporters argue the increase is necessary to help workers keep pace with Seattle’s extraordinarily high cost of living. Critics warn that raising labor costs while businesses are already struggling with rent, insurance, supplies and other expenses could lead employers to raise prices, cut hours, eliminate jobs or reconsider operating in the city altogether.
And employment isn’t the only area showing weakness.
Housing data from First American Data & Analytics shows the broader Seattle metropolitan area experiencing one of the largest home-price declines among the nation’s 50 biggest metro areas. Some higher-priced Eastside markets have experienced particularly noticeable declines as elevated mortgage rates reduce demand, while more moderately priced areas such as Tacoma have remained comparatively resilient.
Put it all together and Seattle faces an important economic question: **Are these temporary adjustments caused by interest rates and the post-pandemic economy — or evidence of a deeper competitiveness problem for the city?**
In this video, we examine Seattle’s 18,000 lost jobs, the decline of downtown employment, the upcoming $22.14 minimum wage, falling home prices, the relative strength of neighboring cities and the economic challenge facing Mayor Katie Wilson and the Seattle City Council.
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