The District's Unemployment Rate Inches Down to 7.6 Percent in August 2004 - Releases

(Washington, DC) Today, Gregg Irish, Director of the Department of Employment Services (DOES) announced that the District of Columbia's August 2004 unemployment rate (not seasonally adjusted) decreased over the month to 7.6 percent. The rate was down 0.7 percent from the July 2004 revised rate of 8.3 percent. However, the August 2004 rate rose slightly over the year by 0.3 percent.

The seasonally adjusted unemployment rate for August 2004 was 7.5 percent; 0.3 percent lower than the 7.8 percent rate in July 2004 and 0.4 percent higher than the rate in August 2003.

"The August decrease in the not seasonally adjusted unemployment rate resulted from a reduction in the number of unemployed residents as recent entrants to the labor force either obtained employment or withdrew from the local labor market. The civilian labor force contracted by 3,700 with 1,500 fewer employed residents and 2,300 fewer unemployed residents," said Director Irish.

District of Columbia Civilian Labor Force, Employment, Unemployment and Unemployment Rate

Over the month, the District's civilian labor force decreased by 3,700 to 304,400. A total of 281,200 residents were employed and 23,200 were unemployed in August 2004. A 2,300 decrease in the number of unemployed residents coupled with a 1,500 decrease in the number of employed residents resulted in the not seasonally adjusted unemployment rate falling by 0.7 percent to 7.6 percent.

The District's seasonally adjusted unemployment rate for August was 7.5 percent; three-tenths of a percent lower than the rate in July 2004 and four-tenths of a percent higher than the August 2003 rate.

The August 2004 national unemployment rate of 5.4 percent (not seasonally adjusted) was three-tenths of a percent lower than the July 2004 unemployment rate and six-tenths of a percent lower than the August 2003 rate.

The seasonally adjusted national unemployment rate in August 2004 was 5.4 percent; one-tenth of a percent lower than in July 2004 and 0.7 percent lower than the August 2003, seasonally adjusted, national unemployment rate.

From August 2003 to August 2004, the District's civilian labor force decreased by 1,700 as the number of employed residents decreased by 2,700 and the number of unemployed residents increased by 1,000. The District's August 2004 unemployment rate was three-tenths of a percent higher than the 7.3 percent rate in August 2003.

District Job Growth

The number of District wage and salary jobs decreased by 5,400 in August 2004. The private sector declined by 3,800 jobs and the public sector registered a 1,600-job loss. In the private sector, educational and health services lost 1,500 jobs, professional and business services and leisure and hospitality each registered losses of 800 jobs, other services declined by 600 jobs, and financial activities registered a 200-job loss. Trade, transportation and utilities gained 100 jobs while natural resources and construction, manufacturing, and information were unchanged over the month. In the public sector, the federal government lost 2,200 jobs, while the District government gained 600 jobs and transportation was unchanged.

In the last 12 months, the District gained a total of 12,500 jobs. The private sector increased by 7,900 jobs, and the public sector registered a gain of 4,600 jobs. The private sector growth was concentrated in professional and business services (up by 4,600 jobs), leisure and hospitality (up by 2,000 jobs), and natural resources and construction (up by 800 jobs). Financial activities added 300 jobs, while trade, transportation and utilities and educational and health services each gained 100 jobs. The remaining private sector industries were unchanged over the year. In the public sector, the District government registered a 4,900-job gain, while the federal government lost 300 jobs, and transportation was unchanged. The significant increase in District government jobs in August is due to the presence of summer youth employment.

Washington Metropolitan Area Civilian Labor Force, Employment, and Unemployment Rate

The civilian labor force in the suburban ring of communities surrounding the District of Columbia decreased by 30,200 in August 2004 as employment fell by 30,000 and the number unemployed decreased by 100. The unemployment rate in the suburban ring, at 2.7 percent in August, was unchanged from the July 2004 rate.

Over the last 12 months, the number of employed residents in the suburban ring rose by 67,400. With 6,800 fewer unemployed suburban residents, the suburban civilian labor force rose by 60,600. The suburban ring's August 2004 unemployment rate of 2.7 percent was four-tenths of a percent lower than the 3.1 percent rate in August 2003.

For the Washington Metropolitan Area, the civilian labor force decreased by 33,900 in August 2004. The number of employed residents in the metropolitan area fell by 31,500, and the number of unemployed residents decreased by 2,400. The metropolitan area's unemployment rate at 3.2 percent in August 2004 was one-tenth of a percent lower than the revised July 2004 rate of 3.3 percent.

Compared to August 2003, the metropolitan area's civilian labor force rose by 58,900. Employment increased by 64,700, with 5,800 fewer unemployed. The Washington Metropolitan Area's August 2004 unemployment rate was three-tenths of a percent lower than the August 2003 rate of 3.5 percent.

Washington Metropolitan Area Job Growth

Total wage and salary employment in the Washington Metropolitan Area decreased over the month in August 2004 by 7,100. The private sector decreased by 2,400 and the public sector lost 4,700 jobs over the month. The largest private sector losses were in leisure and hospitality (down by 2,300 jobs), educational and health services (down by 1,300 jobs), and other services (down by 1,000 jobs). Losses were also registered in information (down by 300 jobs), professional and business services (down by 200 jobs), and financial activities (down by 100 jobs). These losses were partially offset by gains in trade, transportation, and utilities (up by 2,000 jobs) and natural resources, mining and construction (up by 800 jobs). In the public sector, the federal government shed 2,100 jobs and local government employment declined by 3,900 jobs, while state government gained 1,300 jobs.

During the past 12 months, the Washington Metropolitan Area gained 70,400 jobs. The private sector gained 65,200 jobs and the public sector added 5,200 jobs. Private sector gains were registered in professional and business services (up by 25,200 jobs), trade, transportation, and utilities (up by 15,700 jobs), natural resources, mining and construction (up by 10,600 jobs), leisure and hospitality (up by 7,000 jobs), financial activities (up by 3,100 jobs), other services (up by 2,100 jobs), educational and health services (up by 1,500 jobs), and information (up by 200 jobs). Manufacturing lost 200 jobs. In government, the state governments gained 7,500 jobs and the federal government added 1,600 jobs, while the local governments lost 3,900 jobs.