Federal Worker Layoffs Boost D.C. Unemployment to 6%
The seasonally adjusted unemployment rate in Washington, D.C., reached 6% in July, the highest in the nation for the third consecutive month, according to the Bureau of Labor Statistics. This increase is attributed to mass layoffs of federal workers under President Donald Trump's Department of Government Efficiency reforms, as well as declining international tourism, a key income source for the district. Maryland's unemployment rate rose to 3.4% (up from 3.3%) and Virginia's to 3.6% (up from 3.5%) in July. The Supreme Court recently supported the Trump administration's plan to further reduce the federal workforce, despite concerns about critical services and job losses. Unemployment payments to federal workers climbed from $2.01 million in April to $2.57 million by June. International tourism spending in the U.S. is projected to drop by 22.5% this year, driven by reduced foreign visitors due to Trump's tariffs and border policies.