Seattle to raise minimum wage to $22.14 as restaurants shutter and jobs dwindle

Seattle plans to raise its minimum wage to $22.14 per hour in 2027, which would make it the highest in the United States if other areas do not match it. The policy, which began equalizing wages for all employers in 2025 and indexes future raises to inflation, has coincided with the closure of roughly 450 restaurants, about 16% of the city’s total, and a 7% dip in retail transactions near major tech campuses. Industry voices, including Anthony Anton of the Washington Hospitality Association, argue higher pay is needed to match the city’s cost of living and aid staff retention, yet many owners blame the wage hike for financial strain.

A University of Wisconsin, Madison study found the announcement discouraged new business formation in Seattle while boosting it in surrounding suburbs. The downturn follows a longer trend of business exits since the pandemic, with 500 closures and over 500 vacant storefronts, and a 35% decline in metropolitan job postings, the second-largest drop after San Francisco.