The District's Unemployment Rate Continues to Drop in August - Releases

(Washington, DC) Today, Gregg Irish, Director of the Department of Employment Services (DOES) announced that the District of Columbia's seasonally adjusted August 2005 unemployment rate was 6.4 percent, down 0. 3 percent from the July 2005 rate of 6.7 percent. This represents a 2 percent over-the-year reduction.

“This summer we expected lower unemployment rates because of increased employment and decreased unemployment of District residents. However, it is important to look at unemployment statistics during a twelve month period to gauge the strength of the local labor market,” said Director Irish. From August 2004, the labor force increased by 1,600 with 7,500 more residents employed and 5,900 fewer unemployed.

The seasonally adjusted national unemployment rate in August 2005 was 4.9 percent; down 0.1 percent from the July 2005 rate and 0.5 percent lower than August 2004.

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

The not seasonally adjusted unemployment rate for August 2005 was 6.1 percent; down 0.4 percent from the July 2005 rate of 6.5 percent and 2.0 percent lower than the 8.1 percent rate in August 2004.

Over the month, the District’s civilian labor force decreased by 4,900 to 303,500. A total of 285,000 residents were employed and 18,500 were unemployed in August 2005. A 3,500 decrease in the number of employed residents along with a 1,400 drop in the number of unemployed residents was responsible for the 0.4 percent drop in the not seasonally adjusted unemployment rate.

From August 2004 to August 2005, the District’s civilian labor force increased by 2,900 as the number of employed residents increased by 8,800 and the number of unemployed residents decreased by 5,900. The District’s August 2005 unemployment rate was 2.0 percent lower than the 8.1 percent rate in August 2004.

The August 2005 national unemployment rate of 4.9 percent (not seasonally adjusted) was down 0.3 percent from the rate in July 2005 and 0.5 percent lower than the rate in August 2004.

District of Columbia Job Growth

The number of District wage and salary jobs decreased by 2,900 in August 2005. The private sector lost 2,700 jobs and the public sector decreased by 200 jobs. In the private sector, professional and business services declined by 1,300 jobs; leisure and hospitality lost 600 jobs; information decreased by 400 jobs; financial activities lost 300 jobs; natural resources and construction declined by 200 jobs; and trade, transportation and utilities and other services each lost 100 jobs. Educational and health services gained 300 jobs while manufacturing was unchanged over the month. In the public sector, the District government gained 300 jobs; the federal government shed 500 jobs; and transportation was unchanged.

In the last 12 months, the District gained a total of 11,700 jobs. The private sector increased by 8,700 jobs and the public sector added 3,000 jobs. The private sector growth occurred in professional and business services (up by 3,600 jobs), leisure and hospitality (up by 3,200 jobs), other services (up by 1,200 jobs), financial activities and trade, transportation and utilities (each up by 500 jobs), and natural resources and construction and manufacturing (each up by 100 jobs). Losses occurred in information (down by 400 jobs) and educational and health services (down by 100 jobs). In the public sector, the federal government gained 100 jobs, the District government gained 3,500 jobs and transportation lost 600 jobs.

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

The civilian labor force in the Washington Metropolitan Division decreased by 12,600 in August 2005, as employment fell by 13,500 and the number of unemployed increased by 900. The unemployment rate in the Washington Metropolitan Division, at 3.6 percent in August, was unchanged from the rate in July 2005.

Over the last 12 months, the number of employed residents in the Washington Metropolitan Division rose by 79,800. With 3,000 fewer unemployed division residents, the division civilian labor force rose by 76,800. The metropolitan division’s August 2005 unemployment rate of 3.6 percent was 0.3 percent lower than the 3.9 percent rate in August 2004.

Washington Metropolitan Division Job Growth

Total wage and salary employment in the Washington Metropolitan Division decreased over the month in August 2005 by 5,500. The private sector increased by 300 jobs and the public sector lost 5,800 jobs over the month. Within the private sector, gains were registered in trade, transportation, and utilities (up by 1,100 jobs), natural resources, mining and construction (up by 800 jobs), leisure and hospitality (up by 200 jobs), and manufacturing (up by 100 jobs). Losses were noted in educational and health services (down by 700 jobs), information (down by 600 jobs), other services (down by 300 jobs), financial activities (down by 200 jobs), and professional and business services (down by 100 jobs). In the public sector, the federal government lost 1,600 jobs while state government gained 500 jobs and local government shed 4,700 jobs.

During the past 12 months, the Washington Metropolitan Division gained 71,800 jobs. The private sector gained 61,500 jobs and the public sector added 10,300 jobs. Private sector gains were registered in professional and business services (up by 18,300 jobs), trade, transportation, and utilities (up by 11,600 jobs), leisure and hospitality (up by 10,900 jobs), natural resources, mining and construction (up by 7,300 jobs), educational and health services (up by 6,200 jobs), other services (up by 4,500 jobs), financial activities (up by 2,900 jobs), and manufacturing (up by 800 jobs). Information lost 1,000 jobs. In government, state government gained 4,900 jobs; local government added 3,100 jobs and the federal government gained 2,300 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 decreased by 9,900 in August 2005 as employment fell by 10,600 and the number unemployed increased by 800. The unemployment rate in the suburban ring, at 3.2 percent in August, was unchanged from the rate in July 2005.

Over the last 12 months, the number of employed residents in the suburban ring rose by 89,000.   With 4,300 more unemployed suburban residents, the suburban civilian labor force rose by 93,300. The suburban ring’s August 2005 unemployment rate of 3.2 percent equaled the rate in August 2004.

For the Washington Metropolitan Statistical Area, the civilian labor force decreased by 14,800 in August 2005. The number of employed residents in the metropolitan area declined by 14,100, while the number of unemployed residents decreased by 600. The metropolitan area’s unemployment rate—at 3.5 percent in August 2005 – was unchanged from the rate in July 2005.

Compared to August 2004, the metropolitan area’s civilian labor force rose by 96,200. Employment increased by 97,800 and unemployment decreased by 1,600. The Washington Metropolitan Area’s August 2005 unemployment rate was 0.2 percent lower than the August 2004 rate of 3.7 percent.



Washington Metropolitan Statistical Area Job Growth

August 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 September 28, 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).