Real Estate October 28, 2010, 5:05PM EST

For Jobseekers Starting Over, Mobility is the Key

Many metro areas have jobs for jobseekers willing to put up with the expense and hassle of relocating

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In the 1940s, "government girls" came to Washington, D.C., to work as spies, code breakers, and clerks. Temporary government buildings were put up around the Lincoln Memorial reflecting pool to accommodate the influx of workers. Inflated by government activity during World War II, the population of the capital swelled in 1943 to a record 900,000, according to Census data. This was as large as the city would grow. In the years following, D.C. slowly lost residents until its population reached a low of 519,000 in 1999.

Today the U.S. capital is again undergoing somewhat of a revival. While many other cities have seen residents move elsewhere in search of work opportunities, D.C. has been growing, due in no small measure to the jobs added by the Federal government. The district's population, which has consistently increased since 2003, reached just under 600,000 in last year's Census estimates.

The surrounding areas also grew. The greater metro area—which includes such nearby cities as Arlington, Alexandria, and Reston in Virginia; and Bethesda, Rockville, Frederick, and Gaithersburg in Maryland—saw its population reach nearly 5.5 million in 2009, from 4.8 million in 2000, according to Census data.

"The most fundamental point is, when the private sector declines in terms of the level of output and employment, generally the federal government keeps going," says Joseph J. Minarik, senior vice-president and director of research at the Committee for Economic Development, a D.C. think tank. Despite concerns about spending and debt, the federal government in a downturn, he says, "is the flywheel that maintains the economic system."

Strength in Government Jobs

With a combination of employer optimism, a low unemployment rate of 6.2 percent in August, and job creation, the D.C. metro area took first place in a new ranking by Businessweek.com of best places to start over, followed by Raleigh-Cary, N.C., and San Antonio.The D.C.metro area has consistently ranked among the strongest job markets this year in Manpower's (MAN) quarterly Employment Outlook Survey, which asks employers about their hiring plans in the coming quarter.

Until last year, the D.C. metro area had negative domestic migration—more people were moving to other parts of the country than coming in—yet the total population still increased slightly due to international immigration, Census data show. For example, the city lost 44,950 residents to domestic migration in 2006, but 37,826 foreign immigrants entered.

"Immigration is a huge part of the story for growing populations everywhere," says Harriet Tregoning, the director of the D.C. Office of Planning.

Last year marked a turning point: the D.C. metro area gained about 32,000 international immigrants, as well as 19,000 new domestic residents—it was the first year the region recorded positive domestic migration since 2002.

Tregoning says the population increase is related to job creation, as well as local improvements in the schools and reduced crime. The government alone added more than 20,000 new jobs in the district since 2007, according to the U.S.Bureau of Labor Statistics.

Business Plays a Role

The private sector also created jobs. Take management consultant Accenture (ACN), which hired more than 1,000 people in the D.C. area during the 12 months through last August. Also, Deloitte & Touche's federal practice has hired more than 2,200 people in the D.C. area since May 2009, with plans to hire about 160 per month through the end of May 2011, according to the company.