Washington D.C. Records Highest U.S. Unemployment at 6%
BLS data shows D.C. leading jobless rates for the third month, while South Dakota posts lowest at 1.9%.
Newly released data from the Bureau of Labor Statistics (BLS) revealed that Washington, D.C. recorded the highest unemployment rate in the United States at 6% in July, holding this position for the third consecutive month. By contrast, South Dakota reported the lowest jobless rate at 1.9%.
Overall, unemployment rates remained stable across most states compared to June, with only three states showing notable shifts. Alabama and Colorado saw a 0.2 percentage point decline, while California’s rate increased by 0.1 point.
According to the report, 21 states recorded unemployment rates below the national average of 4.2%, while others hovered at or above that figure. Among states with elevated rates: California (5.5%), Nevada (5.4%), Michigan (5.3%), Oregon and Ohio (5%).
Experts note that Washington, D.C.—home to the largest share of federal employees and government agencies—has been particularly impacted by government job cuts. Data from Challenger, Gray & Christmas estimates that federal agencies announced nearly 300,000 layoffs since the start of the year, the highest of any sector.
Year-over-year comparisons also highlight significant increases in some states. Mississippi’s unemployment rose from 3.1% to 4%, Oregon from 4.2% to 5%, and Virginia from 2.8% to 3.6%.
Economists warn that continued weakness in the labor market may push the Federal Reserve to reconsider its cautious monetary stance and potentially cut interest rates for the first time since December.
According to projections from the Philadelphia Fed, the national unemployment rate could climb to 4.5% by 2026 before easing slightly to 4.3% by 2028.
