More than 21,000 Fairfax County residents were looking for work in May, a number that has remained elevated for eight months as federal contracting cuts continue to ripple through the Northern Virginia economy.
The county's unemployed count hit 21,239 in May, up 39% from the 15,275 residents out of work in December 2024, the final full month of the Biden administration, according to data reported July 1 by the Virginia Department of Workforce Development and Advancement. Year over year, the figure rose 7.6% from 19,741 in May 2025.
The Mitre Corporation, the federally funded research contractor headquartered in Tysons near the McLean Metro station, submitted a rezoning application on July 2, proposing to consolidate planned office space and convert land to up to 890 housing units. In its filing, Mitre cited "changes in federal government contracting" as a driver. The company laid off hundreds of employees in 2025 after the Trump administration canceled thousands of contracts.
Shrinking labor force
May marked the eighth straight month that fewer than 620,000 Fairfax residents held civilian jobs. The county's total labor force shrank to roughly 634,000, down about 16,000 from the approximately 650,000 average at the start of the second Trump administration.
The D.C. metro area posted the largest year-over-year drop in nonfarm employment of any U.S. metro in May, down 100,500 jobs, or 3%, according to Bureau of Labor Statistics data. Northern Virginia's unemployment rate stood at 3.3%, up from 3% a year earlier. Virginia's statewide rate was 3.6%, compared with 3.3% in May 2025.
Not everyone sees a crisis
At a late-June meeting of the Alexandria Arlington Workforce Development Council, some participants pushed back on what they called an overblown narrative.
"There are a lot of thought leaders pushing the gloom-and-doom thing," said David Remick, the council's executive director.
Marisa Hayes, a research analyst at Northern Virginia Community College, said at the same meeting that it was too early to conclude whether residents are leaving the region. The labor force decline could reflect retirements, remote work for out-of-region employers, or transitions to freelance work, Hayes noted.
County response
The Board of Supervisors adopted the FY 2027 budget on Monday, May 5, effective July 1, setting aside $4.7 million in a Reserve for Economic Uncertainty. The budget reflects a fourth consecutive year of agency reductions totaling nearly $124 million and includes a quarter-cent cut in the real estate tax rate to $1.12 per $100 of assessed value.
Board Chairman Jeff McKay said the budget reflects "the careful balance we must strike in a time of continued uncertainty," including maintaining services while easing the tax burden.
Governor Abigail Spanberger signed legislation raising Virginia's maximum weekly unemployment benefit from $430 to $478 and the minimum from $112 to $160, effective for new claims filed on or after July 5.
Residents can monitor Board of Supervisors agendas and submit comments through the county's online portal at fairfaxcounty.gov/boardofsupervisors.
