WA ranked No. 3 economy in U.S., but underemployment remains high
Jun 9, 2025, 5:47 AM
A photo of the Seattle skyline with the Space Needle prominently featured. (Photo courtesy of KIRO 7)
(Photo courtesy of KIRO 7)
Washington’s economy is among the strongest in the nation, but not every Washingtonian is benefiting from that.
WalletHub compared all 50 states and the District of Columbia across three key categories: economic activity, economic health, and innovation potential.
“And the news is good for Washington. It cracked the top three,” WalletHub Analyst Chip Lupo told KIRO Newsradio. “Only behind Massachusetts and Utah, and just ahead of California.”
Lupo pointed out Washington has been at the forefront of new technology, noting the state has the highest number of invention patents per capita.
In the WalletHub analysis, Washington also had the second-highest share of jobs in high-tech industries and the second-highest share of ‘STEM’ professionals, or workers in Science, Technology, Engineering, and Math.
Lupo said those jobs are drawing people from around the world.
“New immigrants to Washington are the seventh-most educated in the country,” Lupo said.
Unemployed and underemployed rates in WA
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The prospect of getting a great job attracts new residents and keeps many of those born or raised in Washington from leaving. However, finding a good job can be challenging.
“Washington has an above-average unemployment rate of 4.3% and an extremely high, now this is key, underemployment rate,” Lupo said.
Nine percent of Washingtonians are underemployed, meaning they’re working in a job that doesn’t adequately utilize their skills or experience. A notable example is a person with a college degree who works as a waiter or delivery driver.
Utah, which has an unemployment rate of 3.1%, edged out Washington for second place on the list. Utah also has a strong median income compared to its relatively low cost of living.
Massachusetts ranked No. 1. Lupo noted that the state not only invests heavily in industry, but also in academics. Washington has a few dozen public and private universities. Massachusetts has more than 100.
Why does having a strong state economy matter?
“The stronger your economy, the more tax dollars come into the state, which means better infrastructure, better quality of life for all the residents,” Lupo said.
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