Washington Job Market Struggles; Downtown Columbia Makes Gains

WASHINGTON, DC—The district's economy is lagging most of the nation in terms of job growth as federal spending cuts take its toll on business expansion and employment.

Stephen Fuller, an economist at George Mason University, said, “This dependence (on federal spending), which served the economy so well historically is now an albatross.”

Fuller, who spoke at Capital One's headquarters on Thursday, said that although the DC area weathered the recession better than many markets, continued federal spending cuts have put a damper on growth.

“Everybody is outperforming us except for Detroit,” Fuller said. “We're at the bottom of the list.”

Between July 2013 and July 2014, the District added 19,800 jobs, resulting in a 0.6% growth rate. Dallas during the same period added 120,000 jobs, while New York created more than 155,000 positions, according to the Washington Post.

A bright spot in the region is Columbia, MD, which has seen its Downtown Columbia Plan begin to bear fruit. The plan aimed at revitalizing the struggling downtown district has produced the addition of a host of restaurants, retailers, the renovation and expansion of city landmark buildings and even the development of a new apartment building, according to the Baltimore Sun.

Earlier this week, the Howard County's first Whole Foods Market opened its doors for the first time. However, the revitalization will not be a complete success until its office market shows further improvement.

According to Mark Thompson, the county's director of downtown redevelopment, the vacancy rate for the 19 office buildings in downtown in the spring of 2012 was 21%. In just two years, that number has dropped to 14%. See story in the Baltimore Sun.