The District’s unemployment rate crept up marginally in January, amounting to a slight increase from the previous month and a less than 1 percent decrease from January 2002, the D.C. Department of Employment Services announced March 21.

January’s unemployment rate rose to 6.4 percent, up from 6.2 percent the previous month, the department reported. The latest rate, however, represented a 0.4 percent decrease from the previous January.

Department Director Gregory Irish said officials had expected the increase in unemployment, and he underscored that January’s figure was an improvement over January 2002.

"Because job losses normally occur in January, due to a variety of seasonal factors, the slightly higher unemployment rate was expected," Irish said. "Even with the temporary seasonal effects in hiring, the District’s January jobless rate was actually lower and dropped from last year’s rate."

Officials noted that January’s national unemployment rate also was higher than December’s – which stood at 5.7 percent – and had just topped the 6.3 percent rate recorded in January 2002.

In related statistics, the department reported that January saw a drop of 2,300 residents in the District’s civilian labor force, with the number of employed residents dropping by 2,800 and those unemployed increasing by 500. In the year between January 2002 and 2003, the civilian labor force lost 7,000 employees.

Officials also cited January job losses in the private sector, while reporting an increase in government positions.

Twelve thousand jobs were shed in the private sector, in areas such as educational services – which accounted for 2,100 jobs; accommodation and food services – totaling 1,600; and professional, scientific and technical services – which lost 1,400 jobs.

In the 12 months ending January 2003, however, the private sector enjoyed an overall gain of 5,700 jobs, mostly in educational services.

The federal government in January added 1,100 jobs, while the District lost 400. A similar trend was seen in the previous 12 months, with the federal government gaining 700 jobs and the District shedding 1,000.

Employment trends in nearby areas mirrored those of the District, though total figures were lower. In the D.C. suburbs, January’s unemployment rates rested at 3.1 percent – a 0.3 percent increase from December – and the number of employed residents jumped by 17,500 while 8,300 suburban residents found themselves unemployed. Unlike in the District, the civilian labor force in the suburbs increased by 25,700.

In the District, an optimistic Irish expressed continued confidence despite January’s less than perfect totals.

"It appears that the city’s effort to assist District residents maintain gainful employment is working," he said. – Andrew Moisan

Copyright 2003, The Common Denominator