OLYMPIA, Wash. – A recent survey by the Association of Washington Business (AWB) highlighted ongoing concerns among Washington employers, pinpointing taxes and healthcare costs as major challenges.
The survey, conducted between July 21 and August 6, 2025, gathered responses from 427 business owners across the state.
It found that the state’s tax burden remains the biggest challenge, with 58% of respondents identifying it as a major concern, up from 52% in the spring.
“Following a legislative session where the Legislature passed the largest tax increase in state history, it’s not surprising to see Washington employers continuing to struggle with the state’s tax climate,” AWB President Kris Johnson said.
Healthcare costs also emerged as a significant issue, with half of the respondents citing it as a major challenge. This is an increase from 42% earlier in the year.
Despite these challenges, the survey indicated a decrease in recession fears. Currently, 32% of employers expect a recession in the next year, a drop from 44% in the spring.
Tariff concerns have also lessened, with 58% of respondents expressing worry about their impact, down from 72%. However, tariffs continue to affect businesses, with 85% of impacted respondents reporting increased costs.
Growth projections remain modest, with 45% of employers expecting business to remain flat, and only 6% anticipating good growth.
AWB is holding its Policy Summit in Spokane, September 16-18. For more information, visit the AWB website.
