Washington Area Economy Continues to Power Forward

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The Washington metropolitan area economy continued its expansion into the summer, adding 81,100 jobs during the 12 months ending June 2016. Among the nation’s largest metro areas, only the New York, Los Angeles, and Dallas-Fort Worth metropolitan areas recorded greater job gains. Local job growth was again led by the Professional/Business Services and Education/Health sectors, which added a combined 33,900 new jobs to the regional economy. As of June 2016, the Washington area’s unemployment rate stood at 3.9%, 80 basis points below the June 2015 rate of 4.7%, and well below the national average of 4.9%.
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In the generally positive June jobs report, compensation stands out as an especially notable bright spot. Wages and salaries for private sector workers in the region finally emerged from an extended period of stagnation, and grew 2.5% over the 12-month period ending June 2016. This was just one-tenth of a percent below national wage and salary growth over the same period, and mid-pack among the region’s peer metros. As strong job growth continues in high-paying sectors, and competition for skilled workers becomes increasingly fierce, we expect wage growth to gain even more traction in the period ahead.

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