The labor market in the Washington Metro area is presenting a mixed bag of results, with the Department of Employment Services (DOES) reporting a dip in jobs alongside a relatively steady unemployment rate for January 2024. A total of 38,600 jobs were shed, narrowing down the number of jobs to 2,755,400 in the Washington Metropolitan Division. Private sector employment took the hardest hit, dropping by 35,100 jobs, while the public sector wasn't far behind, decreasing by 3,500 jobs.
The preliminary unemployment rate in January was clocked at 2.9 percent, which is to slightly rise from the revised December 2023 figure of 2.7 percent. Despite the monthly uptick, the rate has seen a minor improvement year-over-year, down from January 2023's 3.0 percent. According to the DOES report, the total civilian labor force came in at 2,797,900, with 2,716,400 individuals employed and 81,500 unemployed. This labor force snapshot marks the unemployment rate steady holding at 2.9 percent.
Focusing on a wider geographic lens, the Suburban Ring surrounding D.C. boasted an unemployment rate of 2.5 percent, with nearly 3 million individuals (2,997,100) gainfully employed and 76,600 in search of work. The Washington Metropolitan Statistical Area, encompassing both the Washington Metropolitan Division and the Maryland areas, had an unemployment rate sit at 2.8 percent, with a labor force of 3,478,000. This area saw its unemployment rate creep up by 0.3 percentage points from the previous month's rate, matching the trend observed in the metropolitan division and the Suburban Ring.
An over-the-year review shows that the Metropolitan Division's labor force has grown by 42,800, with 43,200 more people finding employment and the number of those without jobs decreasing ever so slightly by 400. On the job creation front, DOES outlined that 35,500 jobs were added over the past 12 months. The private sector manifested an increase of 15,800 jobs, while the public sector saw a more substantial hike of 19,700 jobs. Sectors like manufacturing and construction saw gains, alongside education health services and other services, while industries such as information and financial activities posted job losses.
The breakdown by sector revealed no noteworthy job gains in the private sector during the month. However, employment figures for the past year marked increases in sectors such as manufacturing, mining, and construction, with the public sector also contributing positively to job growth overall. This regional economic panorama, as illustrated by the DOES report, sheds light on the shifting landscape of employment in the Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Division, which takes into account a wide swath of the greater D.C. area, including multiple cities and counties spread across Virginia, Maryland, and West Virginia.
