Federal Jobs Decline As Contractor Market Expands

A closer look at July's employment data for the Washington area underscores a shift in the economy, with the number of jobs in the federal government shrinking and the number at companies that serve the government expanding.

The greatest increases in new jobs were in industries that most commonly hold contracts with the government, such as information technology and other professional services sectors, according to the Bureau of Labor Statistics.

In July, the number of professional and business services jobs rose 4.5 percent from last July. Jobs in the financial industry increased 1.7 percent. Computer systems design and related services jobs were up 4.5 percent.

The number of federal government jobs, meanwhile, fell 0.6 percent, to 341,900.

The total number of jobs in the Washington area increased 2.1 percent, to 3,007,100 jobs.

Others sectors were supported by the residential boom. Jobs in private services, which range from auto repair shops to nail salons, rose 3.2 percent. The overall retail sector saw a 3 percent increase.

Other industries were left out of the region's economic expansion.

Jobs in manufacturing fell 1.1 percent. Food and beverage retail store jobs declined 0.7 percent. Telecommunications jobs dropped 2.7 percent.

-- Cecilia Kang