In a move aimed at downsizing the federal government, actions taken by President Donald Trump have sparked a notable increase in unemployment claims within Washington D.C. In the first six weeks of the new year alone, nearly 7,000 claims were filed, marking a 55% rise compared to the previous six-week period. This surge in jobless claims comes amid Trump's efforts, alongside the Elon Musk-led Department of Government Efficiency advisory board, to streamline government operations through significant layoffs.
As of December 2024, Washington D.C. had one of the highest unemployment rates in the nation at 5.5%. Since President Trump assumed office, close to 4,000 workers in the capital city have sought unemployment insurance. Despite the constancy in federal employment numbers since the late 1960s, Trump aims to significantly reduce federal employment rolls as part of his strategy to shrink government size.
The impact of these layoffs extends beyond Washington D.C., affecting approximately one-fifth of the 2.4 million federal workers who are based in the D.C. area, excluding postal employees. The national unemployment rate witnessed a marginal decline from 4.1% in December to 4% in January. However, the metropolitan area encompassing Arlington and Alexandria, Virginia, reported a considerably lower unemployment rate of just 2.7%.
The number of unemployment claims in Washington D.C. has surged with filings reaching 1,780 for the week ending February 8, representing a 36% increase from the preceding week. Despite these developments, the total level of claims across the U.S. has shown little movement, with a four-week moving average of initial claims standing at 216,000.
"I expect it to go higher, and definitely we'll be watching it very closely," – Raj Namboothiry, senior vice president at Manpower North America.
The cuts are widespread throughout various government agencies, with some anticipating dramatic reductions. Approximately 75,000 employees have opted for buyout offers as part of Trump's sweeping measures. The sectors most affected by these layoffs are varied, with differing impacts on job availability and demand.
"It definitely depends on sector. So for example, if you are in the accounting sector right now, that's a sector that, in terms of job postings, we've seen perform pretty well. Say you're in software development… those jobs have not been as in demand. The level of difficulty that you would have in finding a job would really be contingent on the sector that you're in." – Raj Namboothiry.
Economists closely monitor the situation as the surge in jobless claims is anticipated to worsen with ongoing efforts to reduce the federal labor force.
"Yes, the numbers are definitely sizable," – Allison Shrivastava, economist at the Indeed Hiring Lab.