New Competitiveness Brief Looks at Labor Costs

In this new competitiveness brief, prepared for WashACE by the Washington Research Council, we examine several areas in which state policy may drive up labor costs. Citing several well-known studies of interstate competitiveness that find Washington a high-cost state, the brief examines unemployment insurance, workers' compensation, paid leave, and other issues that are likely to be considered in the coming legislative session.

The cost of doing business has many components, but labor costs make up the largest variable. And within the larger labor cost picture, it is employment taxes and mandated benefits that make the big difference from one state to another. Washington already has among the highest average wage
rates in the country, so adding additional costs through taxes and regulation further threatens to let labor costs overwhelm the state?s competitive advantages.

It's a thoughtful and timely analysis.