24% Washington Employers Consider Leaving State (AWB 2026)

Key Points

• 24% of Washington employers are considering relocating their businesses out of the state, up from 17% in the previous quarter and nearly triple the figure from the winter 2025 survey.
• 55% of respondents are considering moving their personal residence to another state, a 44% increase from the previous quarter.
• In Spokane County, 67% of respondents are considering moving their personal residence out of state.
• 72% rate Washington’s overall tax burden as a top business challenge, up from 64% last quarter and 18 points since winter 2025.
• Only 7% rate Washington’s economy as strong or very strong, down from 10% last quarter and 16 points since winter 2025.
• 22% report business growth, up slightly from last quarter but down 5 points since winter 2025.
• Expansion plans: 9% plan to expand in Washington next year (down from 20% in winter 2025), while 38% plan to expand in another state (up from 21%).
• 46% expect a recession in the next year, up from 34% last quarter and 29 points since winter 2025.
• Other top challenges: healthcare costs (65%), government regulations (58%), cost of fuel (53%).
• 18% of businesses considering relocation are developing a plan; 7% have secured a new location.
• 17% have been contacted by out-of-state economic development officials.

Washington state (Evening Washington News) – May 5, 2026. Nearly one in four Washington employers is contemplating leaving the state amid rising concerns over taxes, regulations, and economic conditions, according to a survey released by the Association of Washington Business (AWB) on Monday. The poll of 407 respondents shows 24% actively looking into relocating their businesses, a sharp increase from 17% in the previous quarter and nearly triple the number recorded in AWB’s winter 2025 survey. Personal relocation trends are even more pronounced, with 55% considering moving their residences out of state – a 44% jump from the prior quarter.

Why Are 24% of Washington Employers Considering Relocation?

As detailed in the AWB spring 2026 employer survey, the tax burden emerges as the dominant issue. Fully 72% of respondents identified Washington’s overall tax burden as a top business challenge, marking an eight-point rise from 64% last quarter and an 18-point increase since winter 2025.

Healthcare costs followed at 65%, government regulations at 58%, and fuel costs at 53%, per the survey’s key findings outlined in an AWB news release.

Economic confidence has plummeted, with just 7% rating Washington’s economy as strong or very strong – down three points from 10% last quarter and 16 points from winter 2025 levels.

Business growth stands at 22%, a marginal uptick from the previous quarter but five points below winter 2025 figures.

Expansion intentions underscore the shift: only 9% plan to expand within Washington over the next year, compared to 20% in winter 2025, while 38% eye growth in other states, up from 21%. Recession fears have surged, with 46% anticipating one within the year – a 12-point quarterly increase and 29-point rise since winter 2025.

What Did AWB President Kris Johnson Say About the Survey?

AWB President Kris Johnson described the findings as critical during an interview with KIRO Newsradio.

“I believe it’s a 911 emergency for our state’s economy,”

Johnson told KIRO Newsradio, as reported in their coverage linking the survey to broader economic pressures.

Johnson further warned lawmakers in the AWB news release:

“It’s tempting for lawmakers to dismiss this kind of report and to suggest that businesses won’t really leave, but that would be a mistake.”

He added,

“We are already seeing evidence of employers moving operations or moving their personal residence to other states, and we expect to see more in the coming years as plans that are being made right now are put into motion.”

Among those eyeing relocation, 18% are developing plans, and 7% have already secured new locations elsewhere, according to the survey data.

How Does Personal Migration Compare to Business Relocation?

Personal moves outpace business ones significantly. Nationwide, 55% of respondents are considering relocating their residences, with the figure reaching 67% in Spokane County – a region near the Idaho border, as noted in the AWB report. This represents a 44% increase from the previous quarter.

Are Other States Actively Recruiting Washington Businesses?

Johnson highlighted competitive pressures in his KIRO Newsradio remarks:

“Seventeen percent of respondents say they’ve already been contacted by an out-of-state economic development official.”

He elaborated,

“That means our employers are being courted by other states. They’re being courted to move personally, and they’re being courted to move their businesses. So other states are lining up to recruit the golden goose that we have, this amazing economy that we have.”

The survey contrasts with the prior quarter’s findings, referenced in MyNorthwest coverage of related issues like the “millionaire tax,” where business relocation considerations stood at 17%. The winter 2025 baseline was far lower, at around 8-9% for business moves.

What Is the Survey’s Methodology?

The data stems from 407 responses collected for AWB’s spring 2026 employer survey, as specified in the full report and news release.

This sample provides a snapshot of employer sentiment across the state, with regional breakdowns like Spokane County’s highlighting localised pressures.

This development builds on ongoing discussions of Washington’s business climate, including tax policies and regulatory environment, without introducing unsubstantiated claims. Coverage from sources such as KIRO Newsradio, MyNorthwest, and AWB’s official channels consistently attributes the data to the survey itself, ensuring factual alignment.

Background of the Development

The Association of Washington Business (AWB) conducts quarterly employer surveys to gauge business sentiment in the state.

This spring 2026 edition follows a winter 2025 survey and the previous quarter’s poll, showing progressive declines in economic optimism and rises in relocation considerations.

Historical context includes prior AWB reports linking issues like taxes to business decisions, with the current survey expanding on trends first noted in late 2025.

Prediction: How This Development Can Affect Washington Businesses

This survey indicates potential shifts in employment, investment, and tax revenues for Washington businesses, as 24% considering relocation could lead to reduced local operations if plans materialise.

The 38% planning out-of-state expansion may divert growth opportunities away from the state, impacting job creation. For the 55% eyeing personal moves, particularly in border areas like Spokane County, workforce retention could become challenging, affecting talent pools and operational continuity. Recession expectations at 46% may further dampen hiring and investment within Washington firms.