Here’s Where Federal Government Layoffs Will Hurt The Most
Key Points
- Ongoing layoffs of federal workers will hurt Washington, D.C. economies and their most difficult in the suburbs. Still, unemployment can have a significant impact in cities nationwide where federal agencies are headquartered.
- If the Trump administration lays off 200,000 federal employees in 2025 as Oxford Economics predicts, Washington could lose 2.5% of its jobs.
- Other disadvantaged cities include Baltimore; Kansas City, Missouri; San Antonio, Texas; Ogden, Utah; Memphis, Tennessee, where federal workers make up a relatively high proportion of labor.
Massive layoffs by federal workers will hit Washington, D.C. and its most difficult people in the suburbs, but major subway areas without job losses will not be affected.
This is based on an analysis by Oxford Economics economists who calculated how many federal jobs there are in the country’s major cities and the percentage of labor force in each region that may be affected. President Donald Trump’s administration has Thousands have been fired Federal government workers aim to reduce federal labor by 75% to reduce costs.
Oxford’s calculations assume government will lay off 200,000 federal workers in 2025 A blitzkrieg of cost-cutting. Naturally, Washington, D.C. will suffer the biggest economic impact as it will lose 18,900 jobs or 2.5% of the city’s workforce.
Oxford Economics
Other cities with relatively high proportions of federal workers include Baltimore; Kansas City, Missouri; San Antonio, Texas; Ogden, Utah; and Memphis, Tennessee.
Not all layoffs will lose their jobs. According to past federal layoffs, 35% will enter the private sector, 15% will join state or local governments, 10% will retire, and 5% will become self-employed. Oxford found that the remaining 40% of people may be unemployed, increasing the national unemployment rate by 0.04%.
Veterans Administration layoffs could have a disproportionate impact on the location where VA hospitals are the largest employers. Oxford said Tampa, Florida, San Antonio, Killing, Texas and North Carolina Fayetteville and Virginia Beach will be particularly hit.
Similarly, Atlanta could be subject to a cut by the Centers for Disease Control, Houston is prone to layoffs at NASA, and Denver could be hit by the Environmental Protection Agency layoffs.
Layouts will also have a chain reaction.
“The loss of jobs and wages in the federal government will also have a multiplier impact on the private sector through contractors and local businesses that rely on federal employees’ spending,” Barbara Denham, chief economist at Oxford Economics, wrote in a comment. “The overall reduction in spending at DC Metro will particularly affect consumer-facing sectors such as retail, leisure and hospitality.”