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yesterday

D.C. Jobless Rate Tops Nation for Third Straight Month at 6%

Mass federal layoffs ordered by the Department of Government Efficiency are driving the weakness.

U.S. Department of Homeland Security Federal Protective Services wait on a tow truck to take away a food truck on the National Mall, Friday, Aug. 15, 2025, in Washington. The owner says his employees were asked for immigration status by ICE and then he was told that the truck's tires were bad and it would have to be towed, though he insists it recently passed DC inspection. (AP Photo/Jacquelyn Martin)
unemployment by state
Data: BLS; Map: Axios Visuals

Overview

  • Bureau of Labor Statistics data for July show Washington, D.C., at 6 percent unemployment, compared with a 4.2 percent national rate and 1.9 percent in South Dakota.
  • Outplacement firm Challenger, Gray & Christmas estimates government agencies have announced nearly 300,000 job cuts this year, largely tied to DOGE actions.
  • D.C. Office of Revenue Analysis figures show unemployment payments to displaced federal workers rose from $2.01 million in April to $2.57 million in June.
  • The World Travel & Tourism Council projects U.S. international visitor spending will fall to just under $169 billion this year from $181 billion in 2024, pressuring service jobs.
  • Neighboring Maryland and Virginia ticked up to 3.4 percent and 3.6 percent respectively, and the Philadelphia Fed projects U.S. unemployment to reach 4.5 percent in 2026 before easing.