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WSU survey: Business outlook for ’23 colored by economic worries

Percentages of PNW employers and workers who feel the region's economy is getting better or getting worse.
WSU Carson College of Business
Percentages of PNW employers and workers who feel the region's economy is getting better or getting worse.

Worries about inflation, persistent supply chain issues, labor shortages and economic uncertainty fueled concerns among business leaders that the Pacific Northwest’s economy isn’t improving as quickly as they would like, according to an annual survey from Washington State University.

Results of the Carson College of Business’ sixth annual assessment of economic sentiment showed confidence among business leaders has yet to recover to pre-pandemic levels. From 2021 to 2022, fewer leaders said the regional business climate had improved, and the percentage of those who said they think the business climate is weakening rose.

The results were even more profound among workers that were surveyed: 21 percent said they thought the business climate is strengthening, a 15-percentage point drop since the 2022 survey. 39 percent of workers said they felt the business climate was getting worse, a nine-percentage point rise.

“The two biggest drivers of the increase in pessimism this year were inflation and supply chain issues,” WSU’s Eric Hollenbeck said. “We took this year’s survey and compared it to data we collected in December 2019. We saw -- through 2021 and ’22 -- optimism start to increase, but it really slowed off this year.”

Concerns about a possible recession also tempered how Northwest employers and workers felt about the region’s near-term economic fortunes, Hollenbeck said.

While workers and employers shared similar macroeconomic concerns, the survey found differences in how the two groups perceive issues that affect employment qualities, such as pay and benefits.

“What we find out is what business leaders might think employees want…that’s not necessarily what employees are saying they want,” Hollenbeck said.

For example, business owners and managers said they thought salaries were workers’ top concern. But workers – especially younger ones -- said opportunities for professional growth and development were more important.

“There’s a phrase that’s been floated around, that nobody wants to work,” Hollenbeck said. “And I think we’re starting to see in our survey data is that it’s not that nobody wants to work, they just don’t want to work for a company that’s not going to invest in their career growth.”

The survey found another perception gap on the topic of employee turnover. Business leaders said they think staff churn is improving – but their employees were more likely to say staffing and hiring rates remain a problem.

Hollenbeck said the results show people in leadership positions need to engage more with their employees to find out what their priorities and concerns are.

 Half of Pacific Northwest workers like the idea of four-day workweek. 53 percent favor more paid time off for mental well-being.
WSU Carson College of Business
Half of Pacific Northwest workers like the idea of four-day workweek. 53 percent favor more paid time off for mental well-being.

Survey responses also indicated non-traditional work setups are being taken more seriously.

Half of employees think four-day workweeks are a good idea. And nearly four out of ten business leaders said the same thing.

“This was somewhat surprising to us," Hollenbeck said. "Business leaders and employees were pretty much aligned on wanting to spend to spend less time in a traditional workplace setting.”

Thirty-eight percent of business leaders said they ranked remote work or a hybrid arrangement as a highly desirable benefit. Employees were slightly less likely to agree, at 33 percent.

Fifty-three percent of employees who responded to the survey said one of their top desires is more paid time off for mental well-being, which WSU says underscores the larger theme of less time spent in typical workplaces.

Brandon Hollingsworth is your All Things Considered host. He has served public radio audiences for fifteen years, primarily in reporting, hosting and interviewing. His previous ports-of-call were WUOT-FM in Knoxville, Tennessee, and Alabama Public Radio. His work has been heard nationally on Morning Edition, All Things Considered, Here and Now and NPR’s top-of-the-hour newscasts.