The Economic Revenue Forecast Council (ERFC) recently released the state’s quarterly economic review, showing signs of economic growth and rise in employment.
Despite the slight decline in the state’s unemployment rate, the aerospace sector poses significant challenges on this score. Boeing recently announced deep cuts to company-wide employment and its decision to consolidate 787 production to South
Carolina. Boeing will reduce payroll by roughly 31,000 jobs. ERFC estimates most of these employment cuts will be made in Washington state.
ERFC reported increased employment in manufacturing and construction sectors. In fact, new construction exceeded the previous quarterly forecast. Seattle-area home prices increased significantly, and car and truck sales saw a slight increase.
Similar to previous quarterly forecasts this year, ERFC estimates that if the state experiences a significant increase in coronavirus cases, the economic reopening will continue to be delayed and consumer spending will be reduced. The state’s economic
outlook is subject to change depending on the delivery of a coronavirus vaccine or the passage of a federal stimulus package.