Washington Business Spring 2012 | Page 53

business backgrounder | economy when asked which government agency was most problematic, awb members answered: Department of Labor & Industries Department of Revenue Department of Ecology 32% 21% 20% Act, the corporate accountability measure — and President Barack Obama’s 2012 health care reform law. “The problem is not the rules that are self-evidently absurd,” The Economist said. “It is the ones that sound reasonable on their own but impose a huge burden collectively.” health care concern The cost of health care, another longstanding concern for AWB members, once again ranks high on the list of employer concerns. Most respondents — 86 percent — said they still provide health benefits to their employees, but that figure has dropped from 92 percent in 2006. Of those who do provide health benefits, 77 percent said their health insurance premiums rose by more than 10 percent over the past year. Nearly half — 46 percent — absorbed the higher cost, while 41 percent either reduced benefits or charged employees higher co-pays. Large employers remain most likely to provide health benefits; more than 90 percent of companies employing 250 people or more are offering it. For companies with 10 or fewer employees, the figure drops to 77 percent. some businesses doing ok Still, despite the pessimism about the direction of the state as a whole, a majority of respondents — 67 percent — described current business conditions for their own businesses as either “fairly healthy” or “very healthy.” The remaining one-third said conditions for their own companies were “not very healthy” or “not healthy at all.” This apparent disconnect in attitudes regarding the overall direction of the state versus individual business health mirrors the national divide. Some economic indicators are positive, the stock market was flirting with record-high territory early this year — and yet unemployment remains high and consumer confidence remains low. Increased worker productivity partly explains the situation, according to Steve Lerch, interim executive director of the state Economic and Revenue Forecast Council. More than three years after the start of the Great Recession, GDP has returned to pre-recession levels, and yet unemployment isn’t expected to reach that milestone until 2014, Lerch told AWB’s Lobby Lunch audience in February. It takes fewer workers now to produce the same amount of output. Indeed, most survey respondents were not ready to bring on new workers. Fully 70 percent said they do not expect to add employees during the next 12 months. There are signs that productivity is starting to fall, however, and while that would normally be a bad thing, it is necessary in order for hiring to pick up, Lerch said. awb up to the challenge Although most survey respondents are not happy with the direction of the state, the vast majority — 92 percent — hold a positive perception of AWB, a rating that has not changed in the last five Moore Information, Inc. years. www.moore-info.com One-third of respondents said lobbying the Legislature on behalf at a glance of business is the most important thing AWB AWB surveyed its members does. Another 25 perthis winter to find out what they cent said providing think about the economy, state HealthChoice insurance government and which issues are is most important, and impacting them. 2 3 p e rc e n t w h o s a i d it ’s keeping members Seventy-seven percent of informed about legisrespondents said Washington state lative and regulatory has gotten off track, and 53 percent activities. expect conditions to be about the More than eight in same a year from now. 10 members said AWB’s lobbying on behalf of Seventy-eight percent said business is effective. government regulation on their That ’s gratifying to business had increased in the last hear. And a good thing, five years, up from 73 percent who considering the amount gave that answer in an April o f wo r k t h a t ’s t o b e 2006 survey. done. spring 2012 51