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"D.C. Job Market Struggles: Unemployment Rises, Workforce Participation Declines"

"D.C. Job Market Struggles: Unemployment Rises, Workforce Participation Declines"



The Washington, D.C. job market has experienced significant turbulence in recent months, with notable declines in employment and workforce participation. According to The Westside Gazette, more than 20,000 workers have become unemployed since June 2024, while another 20,000 have left the labor force entirely, resulting in over 46,000 workers affected in the region.

The labor market has shown signs of considerable softening throughout 2025. According to Goldman Sachs research economist Elsie Peng, U.S. job growth has slowed dramatically from an average of 150,000 per month at the start of 2025 to just 25,000 by August. More concerning, ADP payroll data indicates the private sector actually lost 32,000 jobs last month, with trade policy uncertainty appearing to dampen investment and hold companies back from hiring.

Long-term unemployment has emerged as a growing concern. Visual Capitalist reports that the long-term unemployment rate hit 25.7 percent of all unemployed people in August 2025, rising 4.2 percentage points or approximately 385,000 people in just one year. Initial unemployment claims have trended higher this year after weakening late in 2024, suggesting ongoing softening in the job market.

The D.C. market faces particular challenges given its concentration of federal workers. According to India Weekly, over 150,000 federal employees left payrolls at the end of September after accepting buyouts, with many applying for unemployment benefits. Real Estate News notes economists are closely watching the D.C. market since it is home to thousands of furloughed workers.

Despite these challenges, some sectors continue hiring. The continuing claims for unemployment insurance reached 1.942 million during the week ending October 11, indicating many unemployed workers are struggling to find new positions in the current low hiring environment, with some indications suggesting holiday hiring may be less than usual this year.

Current job openings in the Washington area include multiple 2027 2L Summer Associate positions at law firms offering comprehensive legal training programs, a Program Analyst role at the Veterans Crisis Line within the Clinical Operations Department, and various remote data analyst positions.

Thank you for tuning in. Be sure to subscribe for more updates on the job market and economic trends. This has been a quiet please production, for more check out quiet please dot ai.

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Published on 3 weeks ago






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