New from the Richmond Fed's Regional Matters Blog

Taylor Pessin. "Recent Employment Changes in the Washington, D.C., Area."

Between January and May, Maryland lost 5.4 percent of its federal workforce, Virginia lost 4.8 percent, and Washington, D.C., lost 1.9 percent. Cumulatively, the region lost about 22,100 federal employees. These losses were heavily concentrated in the Washington-Arlington-Alexandria MSA, which lost 14,100 federal jobs. The Baltimore-Columbia-Towson MSA lost 3,000 federal jobs. It is common to see an increase in initial unemployment claims among federal workers immediately after the inauguration of a new president, followed by a steady decline. This year was different: Initial claims increased months after inauguration and have remained elevated, particularly in Washington, D.C.

Nathan Sumner and Jason Kosakow. "Fifth District Employment: Findings From the June Business Surveys."

The Richmond Fed's June business surveys asked Fifth District firms about hiring challenges since last year and their workforce expectations for the next six months. About half of the responding firms reported having the same level of difficulty hiring workers as last year, and services firms (29 percent) found it easier than manufacturing firms (22 percent). Among firms facing difficulty hiring, some of the biggest challenges have been finding workers with the right skills or finding workers at all. Others reported that hiring has been easier, and only 3 percent of those firms had eased their hiring requirements. Most firms expected to keep employment levels the same over the next six months, though the ones that anticipated having fewer employees planned to achieve that mostly through attrition.

Bethany Greene. "Federal Government Transfers in the Rural Fifth District."

Many households in the Fifth District rely on federal transfer payments, such as medical benefits, Social Security, or unemployment insurance. Transfers as a share of personal income range from 14 percent for the most urban counties in the district to 36 percent for the most rural. Most transfer payments are medical benefits (e.g., Medicare and Medicaid), and in counties with higher poverty rates and larger senior populations (ages 65 and older), transfer payments often account for a higher share of income. This is especially true in rural areas where there are smaller working-age populations, fewer employment opportunities, and less access to higher-wage jobs.

Quanic Fullard, Jason Kosakow, and Laura Dawson Ullrich. "Student Parents: The Power of Wraparound Supports."

Nearly a quarter of community college students are parents with dependent children. Wraparound services — such as transportation assistance, child care, mental health counseling, and housing — provide students with support to help meet their nonacademic needs. In the Fifth District, Howard Community College in Maryland developed "Kids on Campus" to house on-site child care and Head Start programs. Forsyth Technical Community College in North Carolina created the Student Parent Advocacy Research Center, or SPARC, which uses existing grant programs and foundation dollars for wraparound services. While child care has emerged as the greatest need for student parents, funding, staffing, and space continue to present barriers for community colleges to provide these wraparound services.

Jason W. Smith and Carrie Cook. "Jump-Starting Rural Community Development Projects: Lessons Learned."

The Rural Investment Collaborative, which helps rural leaders jump-start development projects for their communities, has thus far trained 42 leaders, and external partners have awarded $389,000 to support project development. Since the Community Investment Training began in 2024, the Richmond Fed's Community Development team has worked with partners to reduce barriers to community readiness for investment and has learned several lessons about rural projects. Rural leaders have many responsibilities, which can limit their available time and understanding of how to finance projects. Leveraging existing skills and resources and achieving community buy-in can be keys to success. And the location of the project can also influence how quickly it can progress.