WASHINGTON, DC—The US economy continues to gain strength, as evidenced by last week's employment figures. But that growth story—staid though it is—is not translating into gains for the local economy, according to JLL Research Director Scott Homa.

"The environment in Metro DC remains choppy," he tells GlobeSt.com. "Employment growth has been minimal over the past 12 months, with just 6,300 jobs added year-over-year, and even more troubling, the office sector employment has contracted, with the professional and business services segment losing 8,600 jobs year-over-year."

In addition, he continued, the federal government employment in Metro DC is down 23,500 jobs since its peak in mid-2011. Without an uptick in employment, Homa says, demand for office space should remain depressed.

This being the nation's Capitol, there are also numerous signs of, if not growth, then hope for growth.

At 4.5%, unemployment is far below the national average and population growth remains solid, Homa says.

"Setting sequestration and government gridlock aside, the relative tightness of the regional labor market should be viewed as an encouraging sign."

Indeed, Homa says it is very likely the scenario could play out this way: with the unemployment rate as low as it is here, some segments of the market will face, or already are facing, a shortage of qualified talent. "Ultimately, this is likely to fuel more migration to the area and ignite future job growth."

Instant Insights /

DC Still Navigating Choppy Waters

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