Washington DC leads America in unemployment rate for 3rd straight month
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Washington DC leads America in unemployment rate for 3rd straight month

August 20, 2025
04:34 PM
3 min read
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economygovernmenttourismmarket cyclesseasonal analysispolicy

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D.C.'s jobless rate reached 6% in July, a reflection of the mass layoffs of federal workers, and collapsing international tourism.

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August 20, 2025

04:34 PM

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economygovernmenttourismmarket cyclesseasonal analysispolicy

Economy·unemploymentWashington DC leads America in unemployment rate for 3rd straight monthBy Fatima HusseinBy The Associated PressBy Fatima HusseinBy The Associated Press Washington DC is tops in unemployment.AP Photo/Jacquelyn MartinThe seasonally adjusted unemployment rate in Washington, D.C., was the highest in the nation for the third straight month, according to new data released Tuesday by the Bureau of Labor Statistics

D.C.’s jobless rate reached 6% in July, a reflection of the mass layoffs of federal workers, ushered in by President Donald Trump’s Department of Government Efficiency, earlier this year

An overall decline in international tourism — which is a main driver of D.C.’s income — is also expected to have an impact on the climbing unemployment rate in the District

Neighboring states also saw an uptick in unemployment rates in July — with Maryland at 3.4% (up from 3.3%) and Virginia at 3.6% (up from 3.5%), according to the state-by-state jobless figures

Since the beginning of Trump’s second term, federal workers across government agencies have been either laid off or asked to voluntarily resign from their positions

Those actions have drawn litigation across the federal government by labor unions and advocacy groups

In July, the Supreme Court ed the way for Trump administration plans to downsize the federal workforce further, despite warnings that critical government services will be lost and hundreds of thousands of federal employees will be out of their jobs

Office of Revenue Analysis figures show that payments made to unemployed federal workers have been climbing month-over-month

In April, unemployed workers received $2.01 million in unemployment payments

By June, that figure reached $2.57 million

The DC Fiscal Policy Institute argues that the federal worker layoffs will exacerbate D.C.’s Black-white unemployment ratio

The nationwide unemployment rate according to the BLS is 4.2% — South Dakota had the lowest jobless rate in July at 1.9%

In addition, international tourism, a major source of D.C., to the U.S. is declining

Angered by Trump’s tariffs and rhetoric, and alarmed by reports of tourists being arrested at the border, some citizens of other countries are staying away from the U.S. and choosing to travel elsewhere — notably British, German and South American tourists, according to the World Travel & Tourism Council

A May report from the organization states that international visitor spending to the U.S. is jected to fall to just under $169 billion this year, down from $181 billion in 2024 — which is a 22.5% decline compared to the previous peak

The jobs numbers come after the Republican president and a group of GOP governors have deployed National Guard troops to D.C. in the hopes of reducing crime and boosting immigration enforcement

City officials say crime is already falling in the nation’s capital

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