The Seattle economy has slowed steadily over the past two years, due to the collapse of its housing market and the concomitant tightening of credit conditions across the country.

Nevertheless, prior to the Boeing strike that began on September 6, 2008, the city still had significant momentum.

For example, in August 2008, job growth in "the Emerald City" was 2% year over year, the fastest rate among the 25 largest metro areas in the country.

Five key sectors contributed to this increase:

1. Professional business services (+6.7%);
2. Information services (+3.2%);
3. Leisure and hospitality services (+2.5%);
4. Education services (+2.3%); and
5. Government (1.5%).

Given that Boeing is Seattle's largest employer, it goes without saying that the strike probably depressed the economic data for September and October. However, with the Boeing strike now settled, activity in the metro area will probably accelerate sharply. Indeed, efforts to boost production in order to avoid late-delivery penalties could well lead to an increase in overtime and possibly to additional hiring.

Looking ahead, given that Boeing has a very full order book, its sustained production should underpin the Seattle economy in the near term and make an essential contribution to the metro area's growth well into 2010.

Furthermore, although Microsoft, the metro area's second largest private sector employer, indicated recently that it was planning to scale back its hiring, the fact that the internet is generally viewed as an essential service should support the demand for its products in an increasingly hostile economic climate.

Finally, Seattle's economic health should be buttressed by the fact that, according to the 2006 census, it has the highest concentration in the country of individuals over 25 years of age with a bachelor's degree or higher.

This generally-positive employment picture is reinforced by the most recent Manpower Employment Outlook Survey which, although based on a pre-Boeing strike survey of hiring plans, indicated that hiring plans in Seattle were little changed compared to fourth-quarter 2007, despite the weakening national employment outlook.