Liberal stronghold set to adopt eye-popping minimum wage amid business exodus

Key Points:

• Seattle plans to raise its minimum wage to $22.14 per hour by 2027, making it the highest in the U.S. if other areas do not follow suit, with full-time minimum wage workers earning just over $46,000 annually.
• Since the 2025 wage increase applied to all businesses, about 16% of Seattle restaurants closed, and retail transactions dropped up to 7% in key districts near major tech campuses, reflecting mounting cost pressures on local businesses.
• A study found that the announcement of Seattle’s wage hike discouraged new business formation within the city while boosting startups in nearby suburbs with lower wage requirements.
• Despite concerns from business owners about rising labor costs and declining profitability, supporters argue higher wages are necessary to address Seattle’s high cost of living and improve staff retention.
• Seattle’s economic challenges predate the wage increases, with significant business closures since 2020, a 35% drop in job postings, rising downtown office vacancies, and major companies like Starbucks relocating operations away from the city.