Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - July 24, 1998
Contact:  Governor's Communications Office, 360-902-4136

Study shows Washington's economy is nation's best, tops for entrepreneurs

OLYMPIA - Washington's economy is the best in the United States and earned the top ranking for entrepreneurial growth, according to an independent study.

The study by the Corporation for Enterprise Development gives Washington straight A's in three key measurement areas: economic performance, business vitality and development capacity. Only Colorado earned equal grades, according to the 1998 Development Report Card for the States.

"Washington has long had one of the nation's best collection of development resources, and this year was no different," according to the study.

Gov. Gary Locke said the study shows the vitality of Washington's economy and the initiative of its employers and workers.

"Our state is recognized as an economic leader for good reasons," Locke said. "We need to continue to promote development that will benefit all communities throughout Washington."

The Corporation for Enterprise Development is a non-profit organization that works with state and local governments, industry and others to improve economic development throughout the nation. The group has offices in Washington, D.C., San Francisco and Chapel Hill, N.C.

Its study is the 12th annual comparison of economic performance in 50 states. The results are based on information the group gathers from the federal government and independent organizations.

The group found these strengths in Washington's economy:

Employment ranked as the fourth strongest. (Washington's unemployment rate in May 1998 was 4.1 percent, the lowest rate since 1966, according to the state Department of Employment Security).

Fourth-fastest growth in average pay. (The average annual wage in Washington now is $30,479, according to a June 1998 report by Employment Security).

The largest rate of new businesses formed per worker and the sixth-highest rate of new jobs from young companies.

The second-best infrastructure, owing mainly to the nation's highest urban mass transit rate.

Fourth least-deficient bridges.

Third-lowest energy costs.

The second-highest proportion of citizens with at least a high school degree.

Washington also "remained strong" on most quality-of-life measures, ranking among the top 20 in almost half of the indicators. These included water and air quality, infant mortality, teen pregnancies and cancer cases, among others.

Washington's economic future is likely to remain bright. States such as Washington with high rankings in human, technology and financial resources and infrastructure are those most likely to have one of the nation's top economies five years later, according to the study.

The study also noted several areas where Washington could improve its performance:

Income disparity between urban and rural areas. This gap is something Washington shares with two-thirds of the nation's states, according to the study.

The need for higher deposit rates at local banks. More deposits would allow banks to make more commercial and industrial loans, according to the study.

A high rate of business closings. However, the study noted that such closings might reflect high turnover among businesses in a dynamic economy.

Spreading economic success throughout Washington is one of Gov. Locke's priorities. During the last year, the governor has held two economic summits on the issue and has proposed legislation to grant tax breaks to encourage business development and high-wage jobs in rural areas.

"I've said before that I was elected to be governor of one Washington, not two," Locke said. "We have identified priorities for us to pursue and we need to continue to promote prosperity in all parts of the state."

More information about the recent study can be found at the Internet address for the Corporation for Enterprise Development: www.cfed.org

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