Our city's tax revenues continue to decline and we probably won't see an uptick until late next year at the earliest, perhaps not even until 2011. Clearly, the stagnant economy is taking a toll, but will our economic competitiveness environment stand in the way of robust growth once the economy begins to pick up steam?
This question is brought into sharp focus by a study published last week by the Washington Research Council (WRC) that shows Seattle suffering a net job loss since 2000 compared to adjacent cities. You can get the study here: Download Seattle's Lost Decade. (The report covers private employment only and is based on data from the Puget Sound Regional Council which uses Washington State employment records as the basis of their analysis. Some data suppression is involved, so read the data criteria carefully for an accurate picture of the job counts.)
Between 2000 and 2008, Seattle's population grew by 39,000, according to the WRC study. During the same time period, we lost almost 7,900 private sector jobs. So, one might conclude that people like living in Seattle but don't necessarily work in the city; a reverse commute environment compared to historic patterns for our region. Of course, jobs are the foundation of our economic stability and growth, so we want jobs and residents.
During the same 2000 to 2008 period, some of our surrounding cities experienced job growth.
Read the study for interesting perspective on why Seattle's job growth has been negative compared to our population growth; WRC concludes that it's all about the cost of doing business in the city. They present some compelling facts worthy of discussion.
This is an important discussion in times like these where city revenues are falling sharply and we face some tough decisions. It's entirely possible that the Council will be forced to terminate city employees, perhaps a couple of hundred, and eliminate many projects in order to balance our budget. It's not going to be an easy time, for sure.