D.C. Unemployment Rate Jumps in August

By V. Dion Haynes

The unemployment rates for the District rose dramatically to 11.1 percent in August but fell for the second consecutive month in Virginia and stabilized in Maryland, according to government data released Friday.

Employment experts attributed the disparity to a higher proportion of undereducated people in the District working in low-wage jobs that are more vulnerable to cuts. They also cited the beginning of a turnaround in Virginia and Maryland evidenced by a slowing of layoffs and more jobs being created by stimulus dollars.

"Disproportionately, the jobs held by D.C. residents are not stable jobs in the federal government, contracting or in health services, but rather in segments subject to the economic downturn: in restaurants, retail and commercial construction," said Anirban Basu, chairman and chief executive of Sage Policy Group, a Baltimore economic and policy consulting firm.

The federal government is adding jobs and stimulus money, which has resulted in hiring of workers for road construction projects, he added. Recent national data, he said, show "that Maryland and Virginia have more jobs per job seeker than any other state in the country."

The District's unemployment rate jumped to 11.1 percent in August from 10.6 percent in July, according to the Bureau of Labor Statistics. The city's rate was up 3.9 points, from 7.2 percent in August 2008.

The unemployment level in the District for several months has surpassed the national jobless rate, now at 9.7 percent, while Maryland and Virginia are still below it.

Maryland's rate has remained at 7.2 percent since June. The Labor Department on Friday adjusted the July rate from 7.3 percent to 7.2 percent. The state's year-to-year rate increased 2.7 points from 4.5 percent in August 2008.

In Virginia, the rate dropped to 6.5 percent in August from 6.9 percent the month before. From August to August, the state's rate rose 2.4 points, from 4.1 percent. Link...