D.C.’s unemployment rate drops

The unemployment rate in the Washington metro area fell by 0.2 percentage points in February to 3%, per a new analysis of Labor Department data.

Why it matters: Looking at only the national unemployment rate can hide significant disparities between cities that are thriving and those that are struggling.

By the numbers: Nationally as of March, the unemployment rate was 3.5%.

• The Washington region’s rate dropped a 0.9 percentage point over the past year.
• Only a handful of metro areas have unemployment below 3%, including Miami, Minneapolis, and Tampa.

Zoom out: City-level unemployment figures tend to closely track the national trend, with minor deviations driven by the local economic situation.

The bottom line: The Fed is keeping a close eye on the employment level as a measure of the economy's overall temperature.