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September 25, 2006
District of Columbia’s Unemployment Rate Rises to 5.8 Percent in August 2006

(Washington, DC)  The Department of Employment Services (DOES) released the District of Columbia's seasonally adjusted August 2006 unemployment rate, which rose to 5.8 percent (up 0.1 percent from the July 2006).  However, the August 2006 rate was 0.5 percent lower than in August 2005.

“The August unemployment rate, although up from July, is still lower than the monthly rates for the same period in the previous five years. Compared to a year earlier, there were 1,500 fewer unemployed District residents,” said Gregg Irish, director of the Department of Employment Services.

The seasonally adjusted national unemployment rate in August 2006 was 4.7 percent; down 0.1 percent from the July 2006 rate and 0.2 percent lower than the August 2005, seasonally adjusted, national unemployment rate.

District of Columbia’s Civilian Labor Force, Employment and Unemployment 

The not seasonally adjusted unemployment rate for August 2006 was 6.1 percent; down 0.2 percent from the July 2006 rate and unchanged from the rate in August 2005.
 
Over the month, the District’s civilian labor force decreased by 6,200 to 295,700. A total of 277,700 residents were employed and 18,000 were unemployed in August 2006. A 5,100 decrease in the number of employed residents along with a 1,200 drop in the number of unemployed residents resulted in the 0.2 percent decrease in the not seasonally adjusted unemployment rate.
 
From August 2005 to August 2006, the District’s civilian labor force decreased by 4,100 as the number of employed residents decreased by 3,800 and the number of unemployed residents decreased by 400. The District’s August 2006 unemployment rate was equal to the rate in August 2005.

The August 2006 national unemployment rate of 4.6 percent (not seasonally adjusted) was down 0.4 percent from the rate in July 2006 and 0.3 percent lower than the rate in August 2005.

District of Columbia Job Growth

The number of District wage and salary jobs decreased by 2,800 in August 2006. The private sector lost 2,000 jobs and the public sector shed 800 jobs. In the private sector, professional and business services lost 1,100 jobs; trade, transportation and utilities and other services shed 300 jobs each; and educational and health services and leisure and hospitality lost 200 jobs each. Manufacturing increased by 100 jobs. Natural resources and construction, information and financial activities were unchanged. In the public sector, the federal government lost 1,100 jobs; the District government gained 300 jobs and transportation was unchanged. 

In the last 12 months, the District gained a total of 11,300 jobs. The private sector added 11,000 jobs and the public sector gained 300 jobs. The private sector growth occurred in professional and business services (up by 3,100 jobs), educational and health services (up by 2,700 jobs), leisure and hospitality (up by 1,800 jobs), information (up by 1,300 jobs), financial activities (up by 1,000 jobs), natural resources and construction (up by 500 jobs), other services (up by 300 jobs), manufacturing (up by 200 jobs), and trade, transportation and utilities (up by 100 jobs). In the public sector, transportation gained 700 jobs and the District government added 300 jobs while the federal government lost 700 jobs.