Seattle to Raise Minimum Wage to $22.14 in 2027

Seattle is set to raise its minimum wage to $22.14 an hour in 2027, continuing annual inflationbased adjustments that apply to all city employers. The change comes as local businesses face higher labor costs and a softer labor market, with some owners pointing to the policy as a factor in closures and slower growth. The article notes that restaurant and retail activity has weakened in parts of the city, while job postings in the Seattle metro area have fallen sharply since 2020. A study cited in the report found that announcing the wage increase was associated with fewer new businesses opening within city limits, while nearby suburbs saw more formation. Supporters of the higher wage say it helps workers keep up with Seattle’s cost of living and may improve retention for employers. Critics argue that rising payroll costs are adding pressure to businesses already dealing with crime, vacancies, and broader economic strain.