Washington DC unemployment at a high for third straight month: District's July rate reaches 6% mark; federal cuts, court-backed layoffs fuel rise
US capitol Washington DC maintained the nation's highest seasonally adjusted unemployment rate for three consecutive months, according to recent Bureau of Labour Statistics data released on Tuesday.
The District's July unemployment rate reached 6%, primarily due to extensive federal workforce reductions implemented by President
Donald Trump
's Department of Government Efficiency. The declining international tourism, a significant revenue source for DC, is anticipated to further affect the District's rising unemployment figures, according to the analysis cited by Associated Press.
July data showed increased unemployment in neighbouring states, with Maryland rising to 3.4% from 3.3% and Virginia increasing to 3.6% from 3.5%, as per state-specific unemployment statistics.
Since Trump's second term commenced, federal agencies have experienced widespread staff reductions through layoffs and voluntary resignations, prompting legal challenges from labour unions and advocacy organisations.
The Supreme Court's July ruling enabled the Trump administration to proceed with federal workforce reductions, despite concerns about service disruptions and substantial job losses among federal employees.
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Recent DC Office of Revenue Analysis data indicates increasing unemployment payments to federal workers. April payments totalled $2.01 million, rising to $2.57 million by June.
The DC Fiscal Policy Institute suggests these federal layoffs will worsen the District's Black-white unemployment disparity. The current national unemployment rate is 4.2%, with South Dakota recording July's lowest rate at 1.9%.
US international tourism continues declining. The World Travel & Tourism Council reports reduced visits from British, German and South American tourists, attributed to Trump's policies, tariffs and border-related concerns.
A May analysis projects international visitor spending in the U.S. to decrease to nearly $169 billion this year from $181 billion in 2024, representing a 22.5% reduction from the previous peak.
These employment statistics follow the Republican president's and GOP governors' deployment of National Guard troops to DC, aiming to address crime and strengthen immigration enforcement.
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