
Washington DC leads America in unemployment rate for 3rd straight month
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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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business news
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August 20, 2025
04:34 PM
Fortune
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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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