Employers are increasingly looking outside Washington for growth opportunities.
A staggering 91 percent of business owners surveyed said they are not planning to expand their business in Washington state. At the same time, 24 percent said they are actively planning to relocate their business out of Washington altogether. Among those considering relocation, a supermajority said they expect to make the move within the next year.
The findings come from a new Spring 2026 employer survey released by the Association of Washington Business (AWB), painting a bleak picture of employer confidence under policies enacted by Democrats in Olympia.
Rising taxes remain the dominant concern among Washington employers.
Nearly three-quarters of respondents — 72 percent — said the overall tax burden is the top challenge to operating a business in Washington state. Additionally, 75 percent said they have been affected by new taxes enacted over the last two legislative sessions.
Many businesses say those costs are ultimately being passed onto consumers. A majority of employers surveyed said they are raising prices or otherwise shifting the burden of those tax increases onto customers.
The survey also revealed mounting concern over Washington’s new income tax.
Forty-two percent of respondents said the tax will directly affect them or their company, while only 30 percent said it would not impact them.
Business owners also appear deeply pessimistic about the state’s economic future.
Only 11 percent of those surveyed said they do not believe Washington will enter a recession within the next year, meaning an overwhelming majority either expect a recession or remain uncertain.
The economic anxiety is not limited to business operations.
More than half of respondents — 55 percent — said they are considering relocating their personal residence out of Washington as well, suggesting dissatisfaction with the state extends far beyond the workplace.
While the survey noted modest improvements in workforce stability and supply chain issues, the broader outlook from employers remained overwhelmingly negative.
The survey was conducted between April 8 and April 22 and included responses from 407 Washington employers across multiple industries.
The results come as lawmakers in Olympia continue advancing tax increases and regulatory policies that critics argue are making Washington increasingly unaffordable and hostile to businesses.
For many employers, the survey signals a growing belief that Washington is no longer a viable place for long-term investment, expansion, or economic growth.
