The D.C. area’s unemployment rate has increased at a significantly higher pace than the rest of the nation’s since January.
A recent report from the Brookings Institution shows that since January, the D.C. area has shed federal jobs at a faster rate than the rest of the nation, while private sector job growth has plateaued.
The report said the region is showing early signs of economic distress as the federal government undergoes dramatic downsizing under President Donald Trump’s administration.
The biggest increases in unemployment were seen in the Virginia suburbs, including the City of Alexandria, and Arlington, Fairfax and Loudoun counties. However, the District is the jurisdiction with the highest unemployment rate in the region.
Loh said the new research shows that some workers who lost their positions have most likely had to find new employment outside of the D.C. region. In response, the unemployment rates locally have risen significantly.
“Some federal workers have occupations where it’s easier for them to find a new job than others,” Loh said.
It’s impacting the housing market as well. The number of homes for sale in the D.C. region is up 64% since last June.
“If there is slowdown in employment and income, both personal income and private sector income, it does have downstream effects on real estate and real estate occupancy,” said Amy Liu, a senior fellow at Brookings Metro.
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