Washington’s business climate is deteriorating fast, and employers are increasingly looking for the exit.
A new survey from the Association of Washington Business found that nearly one in four Washington employers are now considering moving their businesses out of state, reflecting growing frustration over taxes, regulations, and the state’s economic direction.
The survey, which included responses from more than 400 employers across Washington, found 24 percent are now exploring relocation, up sharply from 17 percent just one quarter ago and nearly triple the number reported in early 2025.
The findings paint an increasingly bleak picture for Washington’s economy as lawmakers continue advancing new taxes and regulations while major employers scale back operations, freeze hiring, or expand elsewhere.
According to the report, only 9 percent of businesses plan to expand in Washington over the next year, while 38 percent say they are more likely to expand in another state. Meanwhile, 46 percent of employers now expect a recession within the next year.
The state’s tax burden emerged as the top concern among employers, with 72 percent identifying it as a major business challenge. The worsening sentiment comes after lawmakers passed billions in new taxes in recent years, including a controversial income tax measure critics warn could hit small and medium-sized businesses structured as pass-through entities.
The survey also found that business owners themselves are increasingly considering leaving Washington. Fifty-five percent said they are considering moving their personal residence out of state, with particularly high numbers near the Idaho border in Eastern Washington.
Socialist Seattle Mayor Katie Wilson has previously flippantly dismissed concerns about wealthy residents leaving the state over taxes, while also backing new taxes.
INSANE. Seattle's Socialist Mayor responds to exodus of wealth from Washington state by saying "BYE" … then laughing. We're doomed. pic.twitter.com/gP8CbPkqEl
— Brandi Kruse (@BrandiKruse) April 29, 2026
Wilson has also called for a boycott of Starbucks, one of the city’s largest corporate employers, the day she was elected, joining striking baristas on the picket line against the coffee giant.
Rep Pramila Jayapal (D-HAMAS) leads a protest in front of the Starbucks corporate HQ in Seattle, demanding wealth redistribution
Behind her is an effigy of CEO Brian Niccol with horns & money bags at his feet.
The property is private, but Starbucks didn't boot the protesters. pic.twitter.com/XtGZgplOa5
— Ari Hoffman (@thehoffather) December 21, 2025
Rep. Pramila Jayapal (D-WA) also joined the striking workers and protested outside the company’s Seattle headquarters.
Starbucks recently announced it would be moving 2,000 jobs to Nashville, Tennessee.
Over the weekend, Jayapal found a new target and supported union efforts against Seattle-based outdoor retailer REI over ongoing labor disputes, accusing the company of “union busting” and calling on consumers to pressure the retailer during stalled contract negotiations.
REI workers are threatening to strike. Now Rep Pramila Jayapal (D-GAZA) is targeting the company
The last company she targeted was Starbucks. She joined the protest encampment outside the company HQ & now the coffee giant is leaving Seattle
Will REI be the next one to leave? pic.twitter.com/Lar7ZOVTaT
— Ari Hoffman (@thehoffather) May 3, 2026
Amazon, Meta, and Google have all announced layoffs. Over 30,000 people have been laid off in the city’s tech sector just this year alone. Amazon moved most of its operations out of Seattle to nearby Bellevue, while Meta canceled plans for expansion in the city
AWB President Kris Johnson warned policymakers against dismissing the trend, saying businesses are already beginning to move operations and assets elsewhere.
