Labor costs crush hiring<\/p>\n
The most damning finding involves labor.<\/p>\n
Some 19% of Washington small business owners named labor cost as their single most important problem, more than twice the 9% national figure. That makes labor cost the second most severe issue in the state while it ranks just sixth of nine nationally.<\/p>\n
Washington\u2019s job numbers reflect it. Plans to increase employment run 10 points below the national average, current job openings run 8 points below, and the state\u2019s 5.1% unemployment rate ranks 45th in the country.<\/p>\n
The NFIB<\/a> report does not dance around the conclusion.<\/p>\n \u201cOne key takeaway is that Washington small businesses find it exceptionally difficult to afford help. Why are their hiring plans lower? Why is Washington\u2019s unemployment rate higher? The data here give a simple answer: It is too expensive to hire in Washington,\u201d the report states.<\/p>\n Government regulation came in 7 points higher as a top problem in Washington than nationally, making it the third biggest problem in the state against seventh in the U.S. Taxes ran 3 points worse. Business health followed the same pattern; only 6% of Washington owners rated their business in excellent health, half the 12% national figure.<\/p>\n All eyes on page 9<\/p>\n Patrick Connor, NFIB\u2019s Washington state director, has been leading the small business push to repeal the state\u2019s new income tax, a fight that has already produced enough signatures<\/a> to put the 9.9% levy before voters. He released the report with a pitch for how policymakers should use it.<\/p>\n \u201cThis new, semi-annual report condenses six months\u2019 worth of SBET findings to come up with more solid datapoints that policymakers in Olympia and in local communities can use to improve the Main Street entrepreneurial climate in our state,\u201d Connor said in a statement announcing the report.<\/p>\n He also told readers exactly where to look first.<\/p>\n \u201cThe whole report is worth a read, but for those on a tight timeframe, I suggest jumping to Page 9 on the Top Issues,\u201d Connor added.<\/p>\n Page 9 is where the report explains why Washington keeps missing national benchmarks. It is also where the state\u2019s Democrats will find the least comfortable reading, since labor costs, regulation, and taxes are all products of decisions made in Olympia.<\/p>\n A verdict Olympia earned<\/p>\n Washington Democrats spent the last two sessions raising taxes on the very businesses this survey measures, capped by an income tax that hits pass-through entities hardest. Small business owners warned lawmakers<\/a> about exactly these outcomes while the bills were moving.<\/p>\n The report\u2019s conclusion reads like a closing argument.<\/p>\n \u201cSmall businesses are not hiring, and a major reason why is because it is much more costly to do so in Washington than in the rest of the country. A second reason for their struggles is regulation, which the data suggests is much more challenging for Washington small businesses than for those elsewhere. Washington is a difficult place to operate a small business right now, and the data sends clear signals why,\u201d the report concludes.<\/p>\n Gov. Bob Ferguson called his income tax a small business tax cut<\/a>. The small businesses just answered.<\/p>\n Listen to The Jason Rantz Show on weekday afternoons from 3 p.m. \u2013 7 p.m. on Seattle Red on 770 AM (HD Radio 97.3 FM HD-Channel 3). Subscribe to the podcast here<\/a>. Follow Jason Rantz on X<\/a>, Instagram<\/a>, YouTube<\/a>, and Facebook<\/a>.<\/p>\n
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