You wouldn’t expect to find unexpected revelations about race, class, and income disparities in the city in an official report with the innocuous title “Seattle Economic Indicators.” But that’s exactly what this brief, unheralded report, released in April, contains.
Back to those revelations in a bit; let’s save the best for last, in the way of burlesque, journalism, and other teaser enterprises. The city’s Office of Economic Development (OED) released its first “Economic Indicators” report last August. It plans to make them a twice-yearly rite and, as the years go on, use them to track “how things change over time,” as OED senior policy adviser Nancy Yamamoto puts it.
In the meantime, this second installment does compare the latest data to several other recent years. And it provides a revealing snapshot of how Seattle is faring five years after asset values peaked, four years after the financial bust hit, and three years after the fragile national recovery began.
Total business revenues in the city rose more than 3 percent in 2011 from their 2010 trough, to $52.8 billion. But they’re still well under their 2007 peak of $62.7 billion, just about what Bill Gates is worth now. The demise of Washington Mutual doubtless played a part. But the overall finance, insurance, and real estate sector held remarkably steady through those five years. Manufacturing and businesses based elsewhere were the sectors that suffered the greatest declines.
The estimated number of jobs in the city has meanwhile recovered from its 2010 trough to 478,000, more than what it was in 2009. But it sagged in the last quarter of the year. Among employment sectors, professional and personal services were the biggest job gainers, followed by manufacturing and retail. The public sector was the biggest job shedder, contrary to traditional notions of government’s inexorable growth.
Seattle’s unemployment rate fell from 8 to 7 percent between late 2010 and late 2011, but was still way above the 4.3 percent rate back in the halcyon days of 2000.
That represents a switch in status between Seattle and the suburbs and smaller cities surrounding it: The city’s unemployment rate was 9 percent higher than the broader Seattle-Tacoma-Bellevue metropolitan area’s in 2000. Now it’s slightly lower. In 2011 it was 10 percent higher. Both remain significantly lower than the statewide rate.
Seattle bucks a dismal national trend on one important gauge: business startups. According to U.S. Census data the rate of business creation nationwide has declined steadily since 1977, the first year recorded, from 17 percent of all businesses to a trough of just 9 percent in 2009. (It ticked back up to 10 percent in 2010, the last year tabulated.) The Census Bureau concludes that “the U.S. has become less entrepreneurial as a result of the decline in startups and the lack of activity by young businesses.”
You wouldn’t know that here in Seattle. According to the new city report, business creation in-city surged in 2011, to 9,000 startups, up from 7,900 in 2010 and just 6,700 in 2000.
Hard times often spur entrepreneurship, as laid-off workers and discouraged jobseekers turn to making candles and starting e-commerce enterprises in their garages. Perhaps there’s a year or two’s delay in the process, or maybe more small businesses are getting city business licenses (and showing up in the stats) than previously. Otherwise, Seattle seems to be bucking the trend; startups declined in the bust year 2009, and have climbed since.
Meanwhile, business closures plummeted, from 8,500 in 2009 to just 3,100 in 2011. The result: a net gain of 6,000 businesses last year. That’s a lot of candles and e-commerce empires.
Another popular truism about the bust is that those at the top have thrived more than ever, while everyone else is hurting. That’s probably true for those at the very top, the notorious 1 percent. “The very rich still earn astronomical amounts,” notes Chris Mefford, an economist at Community Attributes, the Seattle-based consultant that prepared the “Economic Indicators” report for the city. Their share of the nation’s wealth (accumulated, compounded income) has climbed to nosebleed levels.
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