The District's Unemployment Rate Shows Major Reduction in July 2005 - Releases

(Washington, DC) The District of Columbia recorded a 0.8 percent reduction in its seasonally adjusted July 2005 unemployment rate, now at 6.7 percent from 7.5 percent in June. This marks a full 1.6 percent over the year, reported the Department of Employment Services.

“The significant July decrease is reflective of a decrease in the number of unemployed District residents combined with the increased enrollment of the summer youth employment program. Since July 2004, the District’s labor force has increased by 4,000 workers with 8,500 more residents employed and 4,400 fewer unemployed,” said Director Gregg Irish.

The seasonally adjusted national unemployment rate in July 2005 was 5.0 percent; unchanged from the June 2005 rate and 0.5 percent lower than the July 2004, seasonally adjusted, national unemployment rate.

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

The not seasonally adjusted unemployment rate for July 2005 was 6.5 percent; down 1.0 percent from the June 2005 rate of 7.5 percent and 2.8 percent lower than the 9.3 percent rate in July 2004.

Over the month, the District’s civilian labor force increased by 7,100 to 308,400. A total of 288,500 residents were employed and 20,000 were unemployed in July 2005. The 9,700 increase of employed residents, along with a decrease of 2,500 unemployed residents was responsible for the 1.0 percent drop in the not seasonally adjusted unemployment rate.

From July 2004 to July 2005, the District’s civilian labor force increased by 1,100 as the number of employed residents increased by 9,700 and the number of unemployed residents decreased by 8,500. The District’s July 2005 unemployment rate was 2.8 percent lower than the 9.3 percent rate in July 2004.

The July 2005 national unemployment rate of 5.2 percent (not seasonally adjusted) remained the same. However the over-the-year rate was 0.5 percent lower than in July 2004.

District of Columbia Job Growth

The number of District wage and salary jobs increased by 7,100 in July 2005. The public sector registered an 8,400 job gain while the private sector decreased by 1,300 jobs. In the public sector, the District government gained 7,900 jobs and the federal government added 500 jobs, while transportation was unchanged. The substantial increase in District government employment is a result of the summer youth employment program. In the private sector, leisure and hospitality lost 700 jobs; financial activities and professional and business services each declined by 300 jobs; trade, transportation and utilities and educational and health services each lost 200 jobs; and other services decreased by 100 jobs. Information added 300 jobs and natural resources and construction gained 200 jobs, while manufacturing was unchanged over the month.

In the last 12 months, the District gained a total of 11,100 jobs. The private sector increased by 8,300 jobs and the public sector added 2,800 jobs. The private sector growth occurred in professional and business services (up by 3,700 jobs), leisure and hospitality (up by 3,400 jobs), other services (up by 900 jobs), financial activities (up by 600 jobs), trade, transportation and utilities (up by 300 jobs) and natural resources and construction, manufacturing and information (each up by 100 jobs). A loss occurred in educational and health services (down by 900 jobs). In the public sector, the federal government lost 300 jobs, the District government gained 3,800 jobs and transportation lost 700 jobs.

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

The civilian labor force in the Washington Metropolitan Division increased by 22,900 in July 2005, as employment rose by 29,800 and the number unemployed decreased by 6,800. The unemployment rate in the Washington Metropolitan Division, at 3.6 percent in July, was three-tenths of a percent lower than the rate in June 2005.

Over the year, the number of employed residents in the Washington Metropolitan Division rose by 74,800. With 10,000 fewer unemployed division residents, the division civilian labor force rose by 64,700. The metropolitan division’s July 2005 unemployment rate of 3.6 percent was half of a percent lower than the 4.1 percent rate in July 2004.

Washington Metropolitan Division Job Growth

Total wage and salary employment in the Washington Metropolitan Division decreased over the month by 11,400 in July. The private sector declined by 3,000 jobs and the public sector lost 8,400 jobs. Within the private sector, losses were registered in educational and health services (down by 3,600 jobs), trade, transportation, and utilities (down by 2,600 jobs), financial activities (down by 300 jobs), and leisure and hospitality (down by 200 jobs). Gains were noted in natural resources, mining and construction (up by 1,600 jobs), professional and business services (up by 1,000 jobs), other services (up by 600 jobs), information (up by 300 jobs), and manufacturing (up by 200 jobs). In the public sector, the federal government was unchanged while state government gained 2,900 jobs and local government shed 11,300 jobs.

During the past 12 months, the Washington Metropolitan Division gained 74,500 jobs. The private sector gained 63,800 jobs and the public sector added 10,700 jobs. Private sector gains were registered in professional and business services (up by 20,000 jobs), leisure and hospitality (up by 11,800 jobs), trade, transportation, and utilities (up by 10,600 jobs), natural resources, mining and construction (up by 7,200 jobs), educational and health services (up by 6,900 jobs), other services (up by 4,600 jobs), financial activities (up by 3,000 jobs), and manufacturing (up by 600 jobs). Information lost 900 jobs. In government, state government gained 5,700 jobs while local government added 2,900 jobs and the federal government gained 2,100 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 20,700 in July 2005, as employment rose by 24,200 and the number unemployed decreased by 3,600. The unemployment rate in the suburban ring, at 3.2 percent in July, was one-tenth of a percent lower than the rate in June 2005.

Over the last 12 months, the number of employed residents in the suburban ring rose by 77,100.   With 1,300 fewer unemployed suburban residents, the suburban civilian labor force rose by 75,900. The suburban ring’s July 2005 unemployment rate of 3.2 percent was one-tenth of a percent lower than the rate in July 2004.

For the Washington Metropolitan Statistical Area, the civilian labor force increased by 27,800 in July 2005. The number of employed residents in the metropolitan area rose by 33,900, and the number of unemployed residents decreased by 6,100. The metropolitan area’s unemployment rate at 3.5 percent in July 2005 was three-tenths of a percent lower than the rate in June 2005.

Compared to July 2004, the metropolitan area’s civilian labor force rose by 77,000. Employment increased by 86,800 and unemployment decreased by 9,800. The Washington Metropolitan Area’s July 2005 unemployment rate was 0.5 percent lower than the July 2004 rate of 4.0 percent.



Washington Metropolitan Statistical Area Job Growth

July 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 August 31, 2005. The estimates for the Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Statistical Area will be the summation of the 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).