A new report from a business-focused nonprofit points to slowing job growth, a difficult tax environment and other pressures as suppressing business in the state. 

The 2026 Competitiveness Redbook from the Washington Alliance for a Competitive Economy notes that the state is maintaining its strength as a high-tech sector and export hub, according to a release. But with just 0.5% job growth in 2025, a bottom 10 ranking for tax competitiveness and high fuel and labor costs, it’s becoming harder to do business in the state, the report said. 

According to the data, employers account for nearly 50% of state and local tax collections, contributing approximately $10,100 per employee. 

And one of Washington state’s longest-running boons is eroding: affordable electricity. 

“While rates remain relatively competitive, industrial electricity costs have increased compared with previous years, moving Washington from the top-ranked state five years ago to seventh for industrial customers,” according to a statement from Washington Retail Association. 

To read the full report, go to: https://viewer.joomag.com/2026-competitiveness-redbook/0660543001768956443