D.C. region's unemployment rate dropped to 6.1 percent in November
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Wednesday, January 6, 2010
The unemployment level in the Washington region dipped in November to 6.1 percent from 6.2 percent the previous month, according to government data released Tuesday, further evidence to some economists that the area has weathered the worst of the recession.
Washington and New Orleans had the lowest unemployment rates among metropolitan areas with 1 million people or more -- well below the national not-seasonally-adjusted rate of 9.4 percent and the Detroit region's rate of 15.4 percent.
Professional and business services, education and health, and the government added thousands of jobs, blunting the impact of steep losses in construction and retail. The Washington region experienced a net loss of 15,300 jobs during the 12 months ended in November, according to the report, down from the year-to-year net losses of 23,900 jobs in October and 37,000 in September.
"The economy is showing some signs of improvement," said Mohammad Siddiqui, an economist at IHS Global Insight who follows the Washington region. "We might see a small positive number [showing a net gain in jobs] going from quarter four of 2009 to quarter one of 2010."
Still, unemployment varies wildly in the area -- ranging from 4.2 percent in September in Arlington County to 7.3 percent in Prince George's County to 11.7 percent in the District overall, and as high as 29 percent in D.C.'s Ward 8 in October -- and some economic development officials said the region needs to do much more to address the disparity.
Analysts expect the federal government and contracting firms to hire tens of thousands of people for high-skilled, high-paying jobs over the next several years, and economic development officials say they expect more companies like Northrop Grumman to decide to relocate to this area. But they say they are concerned about the large number of low-skilled, non-college-educated unemployed people whose jobs may not come back even after the economy recovers.
"There are too many pockets of unemployment. It creates a greater gulf between the haves and have-nots," said James C. Dinegar, president and chief executive of the Greater Washington Board of Trade, who is planning a job summit this year to address the issue.
Barbara B. Lang, president and chief executive of the D.C. Chamber of Commerce, said she is planning meetings with senior executives of industries considered high-growth -- finance, health and hospitality -- to determine what skill sets will be needed for the new jobs they create.
The unemployment numbers in the District "are stark and terrible," said Lang, noting that the city has a high proportion of people who are undereducated and illiterate. "We've got to get our residents better prepared."
Overall, professional and business services in the area experienced a year-to-year net gain of 4,700 jobs in November, up from 100 in October. The net gain in government was 7,500 jobs, down from 12,700 in October.
Construction experienced a year-to-year net loss of 15,600 jobs in November, up from 14,800 in October. The net loss in retail was 8,700 jobs, down from 13,200 in October.