The District's Unemployment Rate Drops in January to 8.2 Percent - Releases

(Washington, DC) Today, Department of Employment Services Director Gregg Irish announced that the District of Columbia's seasonally adjusted unemployment rate for January 2005 dropped by 0.6 percent to 8.2 percent from the revised rate of 8.8 percent in December 2004. The January 2005 rate however was 0.7 percent higher than last January.

“The decrease in the January unemployment rate marks the first monthly decline in the seasonally adjusted data since March 2000,” said Director Irish. “It appears that the District experienced an increase in the number of employed residents while the number of unemployed resident declined, which resulted in a substantial drop in the unemployment rate.

The seasonally adjusted national unemployment rate in January 2005 was 5.2 percent; 0.2 percent lower than the December 2004 rate and 0.5 percent lower than the January 2004, seasonally adjusted, national unemployment rate.

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

The not seasonally adjusted unemployment rate for January 2005 was 7.7 percent; down 1.3 percent from the December 2004 revised rate of 9.0 percent and 0.2 percent higher than the rate in January 2004.

Over the month, the District’s civilian labor force decreased by 3,200 to 298,900. A total of 276,000 residents were employed and 23,000 were unemployed in January 2005. This represents a 1,000 increase in the number of employed residents coupled with a 4,100 decrease in the number of unemployed residents.

From January 2004 to January 2005, the District’s civilian labor force increased by 4,800 as the number of employed residents increased by 3,900 and the number of unemployed residents increased by 1,000. The District’s January 2005 unemployment rate was 0.2 percent higher than the 7.5 percent rate in January 2004.

The January 2005 national unemployment rate of 5.7 percent (not seasonally adjusted) was six-tenths of a percent higher than the December 2004 rate and six-tenths of a percent lower than the January 2004 rate.

District of Columbia Job Growth

The number of District wage and salary jobs decreased by 11,500 in January 2005. The private sector decreased by 11,100 jobs and the public sector registered a 400 job loss. In the private sector, professional and business services lost 5,000 jobs, educational and health services and leisure and hospitality each lost 1,800 jobs; trade, transportation and utilities lost 1,300 jobs; natural resources and construction lost 500 jobs; information lost 300 jobs; other services lost 200 jobs; and financial activities and manufacturing each lost 100 jobs. In the public sector, the federal government lost 400 jobs and transportation lost 100 jobs, while the District government gained 100 jobs.

In the last 12 months, the District gained a total of 7,200 jobs. The private sector increased by 6,200 jobs and the public sector added 1,000 jobs. The private sector growth occurred in educational and health services (up by 2,200 jobs), professional and business services (up by 2,100 jobs), leisure and hospitality (up by 2,000 jobs), other services (up by 1,800 jobs), and financial activities (up by 300 jobs). Losses occurred in information (down by 1,500 jobs), natural resources and construction (down by 400 jobs), and trade, transportation and utilities (down by 300 jobs). Manufacturing was unchanged over the year. In the public sector, the District government gained 1,200 jobs, the federal government lost 200 jobs and transportation was unchanged.

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

The civilian labor force in the Washington Metropolitan Division increased by 6,200 in January 2005 as employment rose by 4,600 and the number unemployed increased by 1,600. The 3.8 percent unemployment rate in the Washington Metropolitan Division was unchanged from December 2004.

Over the last 12 months, the number of employed residents in the Washington Metropolitan Division rose by 50,000. With 3,900 fewer unemployed division residents, the civilian labor force rose by 46,200. The metropolitan division’s January 2005 unemployment rate of 3.8 percent was three-tenths of a percent lower than the 4.1 percent rate in January 2004.

Washington Metropolitan Division Job Growth

Total January 2005 wage and salary employment in the Washington Metropolitan Division decreased over the month by 40,300. The private sector lost 36,000 jobs and the public sector shed 4,300 jobs over the month. Within the private sector, losses were registered in trade, transportation, and utilities (down by 12,700 jobs), professional and business services (down by 7,100 jobs), leisure and hospitality (down by 6,900 jobs), natural resources, mining and construction (down by 3,800 jobs), and educational and health services (down by 3,000 jobs). Small losses were noted in financial activities and other services (each down by 900 jobs), information (down by 600 jobs), and manufacturing (down by 100 jobs). In the public sector, local government employment decreased by 2,200 jobs, state government lost 1,200 jobs and the federal government shed 900 jobs.

During the past 12 months, the Washington Metropolitan Division gained 67,200 jobs. The private sector gained 56,900 jobs and the public sector added 10,300 jobs. Private sector gains were registered in professional and business services (up by 26,600 jobs), leisure and hospitality (up by 8,900 jobs), natural resources, mining and construction and trade, transportation, and utilities (each up by 5,900 jobs), educational and health services (up by 5,800 jobs), other services (up by 3,900 jobs), and financial activities (up by 1,900 jobs). Information lost 2,000 jobs while manufacturing was unchanged. In government, state government gained 5,000 jobs; the federal government added 4,100 jobs and local government gained 1,200 jobs.

Washington Metropolitan Statistical Area Civilian Labor Force Employment and Unemployment Rate

The civilian labor force in the suburban ring of communities surrounding the District of Columbia increased by 11,900 in January 2005 as employment rose by 2,900 and the number unemployed increased by 8,800. The unemployment rate in the suburban ring, at 3.3 percent in January, was 0.4 percent higher than the rate in December 2004.

Over the last 12 months, the number of employed residents in the suburban ring rose by 49,000. With 4,500 fewer unemployed suburban residents, the suburban civilian labor force rose by 44,700. The suburban ring’s January 2005 unemployment rate of 3.3 percent was two-tenths of a percent lower than the 3.5 percent rate in January 2004.

For the Washington Metropolitan Statistical Area, the civilian labor force increased by 8,700 in January 2005. The number of employed residents in the metropolitan area rose by 3,900, and the number of unemployed residents increased by 4,700. The metropolitan area’s unemployment rate at 3.7 percent in January 2005 was 0.1 percent higher than the rate in December 2004.

Compared to January 2004, the metropolitan area’s civilian labor force rose by 49,500. Employment increased by 52,900 and unemployment decreased by 3,500. The Washington Metropolitan Area’s January 2005 unemployment rate was two-tenths of a percent lower than the January 2004 rate of 3.9 percent.

Washington Metropolitan Statistical Area Job Growth

January 2005 wage and salary employment estimates for the Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Statistical Area will be released by the U.S. Bureau of Labor Statistics on March 17, 2005. The estimates will be the summation of estimates for the Washington-Arlington-Alexandria, DC-VA- MD-WV Metropolitan Division (contained in this release) and the Bethesda-Gaithersburg-Frederick, MD Metropolitan Division (to be released by the Maryland Department of Labor, Licensing and Regulation).

For additional information regarding unemployment and wage and salary data for the District of Columbia, contact the Office of Labor Market Research and Information, (202) 671-1633.