Region's Employment Rose in March; Increase in Suburbs Dropped Overall Jobless Rate to 3.4 Percent
A strong surge of job growth in the Washington suburbs pushed the region's unemployment rate down to 3.4 percent in March from 3.7 percent a month earlier, area employment officials reported yesterday.</br></br>The unemployment rate in the Washington suburbs fell to 2.9 percent from 3.2 percent in February as an additional 14,800 workers found jobs at technology companies, construction sites, hotels, stores and offices. The figures for the region, which are not adjusted for seasonal fluctuations, remain far below the comparable national unemployment rate of 5.5 percent in March.</br></br>A springtime economic pickup gave a boost to the District, as well, providing jobs for an additional 4,000 D.C. residents in March compared with February. Although the D.C. unemployment rate rose to 7.8 percent in March from 7.4 percent in February after seasonal adjustments, the March figure is the lowest for that month since the 1990-1991 recession.</br></br>Employment in District businesses rose by about 1,500 jobs over the past year but government downsizing lowered the city's total work force, including commuters, to 617,300 in March -- 12,000 fewer than a year ago.</br></br>The only unfavorable sign in the March figures was a sharp 11 percent decline in permits for housing construction in the Washington area, according to Regis J. Sheehan & Associates in McLean. Economists believe that higher mortgage rates may have begun slowing the housing market, but they generally predict that higher rates are not likely to noticeably affect the region's economy until this summer or fall.