The Washington region ranks among the nation’s strongest economies despite local governments hemorrhaging money and many waiting for home values to return, says a new report.
The Washington Metropolitan Area has the second healthiest economy in the nation — trailing only Seattle — according to a report released Thursday by POLICOM Corp., an independent economic research firm.
“There’s no secret to it,” POLICOM President William Fruth said in an interview. “With all the money related to the federal government, you will always rank in the top five. And there are so many of the world’s largest corporations — they never lay off and keep hiring and pay a good wage.”
The study compares jobs and wage data to welfare and Medicaid numbers between 1989 and 2008, showcasing the stability of a dominant public-sector work force.
Considering the recent economic turmoil, accolades might seem a bit ill-timed for some around the Beltway. But it’s all relative, economic analysts say.
Aside from the federal government and its abundance of contracts, the area’s high education level and numerous two-income households further contribute to its wealth.
“Washington is more than weathering the economy,” said Anirban Basu, chairman and chief executive officer of Sage Policy Group Inc., an economic and policy consulting firm in Baltimore. “It is participating in economic expansion.”
He said the area is losing jobs at a quarter of the pace of the national average, while maintaining the fourth lowest office-vacancy rate.
POLICOM releases annual rankings for the 366 metropolitan areas and 576 so-called micropolitan areas nationwide. Maryland’s Lexington Park ranked 13th among smaller urban centers.
On the flip side, Danville, Ill. received the lowest ranking for metropolitan areas. The Danville in southern Virginia, Anderson and Muncie, Ind., and Springfield, Ohio, rounded out the least stable economic regions.
The Top Ten 1. Seattle-Tacoma-Bellevue, Wash.
2. Washington Metropolitan Area
3. Denver-Aurora-Broomfield, Colo.
4. Houston-Sugar Land-Baytown, Texas
5. Sacramento-Arden-Arcade-Roseville, Calif.
6. Salt Lake City
7. Des Moines-West Des Moines, Iowa
8. San Diego-Carlsbad-San Marcos, Calif.
9. Madison, Wis.
10. Dallas-Fort Worth-Arlington, Texas
