Many economists believe that a global downturn is on the horizon. With slowing economic growth and a volatile stock market, that reality is becoming more apparent to more people every day. In fact, there have been several good articles indicating that at this point in time it’s not a matter of if it is going to happen but when it is going to happen. The good news is that if a recession were to happen, Seattle is set up to survive a pending downturn.
Why is Seattle likely to survive? The answer is technology.
Seattle is currently one of the strongest economies in the United States. With two of the five Big Tech firms headquartered here, the Seattle economy has grown dramatically in the last ten years. After the 2008 recession, big tech firms began to capitalize on the large amount of commercial office space available in the area resulting in a major increase in tech-based jobs. Because of the rise in open positions, a steady flow of technology-based talent began moving into the city increasing the attractiveness of the area to other tech firms and companies who wanted a piece of the booming Seattle market. All of these trends resulted in Seattle becoming a top tier market for commercial real estate and a prime destination for technology-focused talent.
With the current Seattle economy in a bubble of growth exceeding much of the country due to the reasons mentioned above, Seattle is likely in a better position to survive the looming recession better than most other communities due to the strong tech-based-jobs market. Currently, Seattle companies are expected to continue expanding as is evident due to a slate of high profile commercial real estate deals that have been completed during the first half of the year.
None of this is to say that Seattle is risk-free in the event of an economic downturn. Housing affordability and gridlocked traffic continue to have a major impact on a city that has continually been one of the fastest growing cities in the United States. A downturn could decrease much needed public funding to help solve these issues. This in turn could cause some companies to relocate if left unresolved while simultaneously creating a less desirable place to live and driving up the cost of labor.
However, Seattle has proven resilient during prior economic crises and continues to thrive during the age of the technology and service economy. For that reason, the Emerald City appears to be in good shape for whatever the future may bring.
