Today Puget Sound Sage released a new report examining the economic impact of SeaTac’s living wage initiative, Proposition 1.
According to the analysis, worker spending will multiply, resulting in up to $54 million of increased income for the region and more than 400 new local jobs. This increase in earnings and spending will mean more revenue for local governments to pay for improved infrastructure such as schools, parks and public safety.
Prop 1 will result in up to $54 million of increased income
Proposition 1 will have large and positive effects on household income in the region and direct benefits to the residents of the city of SeaTac. The key findings of the Puget Sound Sage report include:
- Over six thousand workers will receive an average wage increase of $3.97, or about a 36 percent boost.
- Covered workers would see earnings rise from an average of $17,700 to $24,000 per year. Workers will spend their increased earnings at local businesses, restaurants and stores.
- The paycheck boost along with worker spending will result in a total of $54 million in increased household throughout the region.
- 15-20 percent of this household income boost will be received by SeaTac residents, resulting in increased revenues for small businesses and the City.
- Wage increases under Proposition 1 could be absorbed by marginal price increases between .5 percent and 1.5 percent for the customers of covered businesses.
- The majority (68 percent) of revenues enjoyed by covered employers comes from visitors to the region, resulting in a net economic gain.
A copy of the full report is available here.