KEEP DIGGING: ‘Where’s the bottom’: Economics professor addresses Seattle area’s shrinking job market.

Layoffs at Starbucks’ Seattle headquarters is the latest sign of continuing job losses in western Washington.

Other major employers, including Amazon, Microsoft, META and Expedia have announced hundreds of local job cuts in recent months. The cuts come as King County saw its unemployment rate dip to nearly 5% in June.

Seattle University associate professor of economics Nick Huntington-Klein said the area is seeing a “sustained issue,” with big companies doing sweeping cuts at the same time.

There are several factors at play, he said. These companies cite AI as the potential to replace some employees. There was also over-hiring during the COVID-19 pandemic. Finally, higher taxes in Washington state and Seattle specifically has been a reason for reductions in force or for some companies to relocate.

Previously: Socialist mayor’s blunt 1-word message to fleeing millionaires sparks outrage: ‘We’re doomed.’ “‘Bye,’ Seattle Mayor Katie Wilson said to millionaires leaving her state.”