DC-area economy, seemingly ‘recession-proof,’ is looking shaky

For decades, the Washington-area economy has been considered “recession-proof” due to the size and scope of the federal workforce in and around the District of Columbia. But multiple economic indicators suggest the label could be slipping.

Unemployment is rising, and payrolls are shrinking in the public and private sectors. This follows federal layoffs and the federal takeover of the Metropolitan Police Department in President Donald Trump’s second, nonconsecutive term.

A review of the most recent District of Columbia Economic and Revenue Trends revealed that the seasonally adjusted unemployment rate stood at 6.2% in June. The data, which cover the city limits, were released by the Bureau of Labor Statistics and the D.C. Office of Revenue Analysis, a spike from 5% in December 2024.

The Washington metropolitan

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