Underpinning this retailer-friendly business climate is that holy grail of economic development, job growth. Citing U.S. Bureau of Labor Statistics numbers, the report says that the Washington metro area economy generated 65,600 new payroll jobs in the 12 months ending in September. This represents a 2.3% rate of growth, compared to 1.3% nationally.

These jobs aren't just any jobs. Many are well paying. "Professional and business services firms--particularly contractors who serve the federal government--added 22,700 net jobs to the Washington employment base over the last 12 months, bolstering the local economy and maintaining job growth well above the long-term average of 50,000 per year," Delta notes. Moreover, the BLS puts the Washington area unemployment rate at 3.2% in August 2004, down from 3.5% 12 months before and well below a cyclical high of 4.0% in June 2002. This is the lowest rate in the nation among major metro markets and compares favorably to the national rate of 5.4% in August.

The impetus for this job creation is, of course, the federal government, as it ramps up defense and intelligence spending, a process that "should continue for years," says the report, "gradually driving job growth higher as contractors expand to address new assignments for the government. And as people flow to the region and jobs proliferate, the retail sector, food services, and the construction sector will continue to churn out jobs to support the region's growing population."