President Donald Trump is initiating significant layoffs of federal employees, a decision that coincides with a notable increase in unemployment claims in Washington, D.C. This trend may worsen as the administration’s efforts to downsize continue.

Since Trump assumed office, roughly 4,000 federal workers in the city have filed for unemployment benefits, marking the start of a spike that began with the new year, based on unadjusted Labor Department statistics.

In total, nearly 7,000 claims have been submitted during the first six weeks of the year, which is an increase of around 55% compared to the same timeframe in the prior year. Claims surged to 1,780 for the week ending February 8, representing a 36% rise from the previous week and over four times the number filed during the corresponding period in 2024.

In comparison, the overall number of claims across the United States has remained relatively stable, with a four-week moving average of initial claims at 216,000, showing minimal change since the year began and a general downward trend over the preceding months.

This rise in unemployment claims in D.C. comes as Trump and the advisory board led by Elon Musk at the Department of Government Efficiency have initiated layoffs throughout the government and introduced buyout options for early retirement.

“I anticipate further increases in claims, and we will be monitoring the situation closely,” stated Raj Namboothiry, Senior Vice President at Manpower North America, a workforce solutions firm.

While the exact percentage of the claim increase attributable to federal workers remains uncertain, it coincides with orders from the White House for the dismissal of probationary employees as part of broader workforce reductions. Additionally, approximately 75,000 employees have accepted the buyout offer.

As of December 2024, Washington, D.C. reported one of the country’s highest unemployment rates at 5.5%, second only to Nevada, according to the Bureau of Labor Statistics. In contrast, the metropolitan areas of Arlington and Alexandria, Virginia, recorded a much lower rate of 2.7%. For reference, the national unemployment rate was 4.1% before decreasing to 4% in January.

The Broader Job Market Remains Stable

Namboothiry indicated that the reduction of federal positions may create specific challenges in the region, but it is unlikely to significantly impact the national job market, which he described as “fairly stable.”

“Yes, the numbers are indeed substantial,” he commented. “However, given the diverse geographical distribution, skill sets, and sectors involved, I don’t foresee it having a major effect on the overall market.”

Currently, there are about 2.4 million federal employees in the U.S., excluding postal workers, with nearly 20% located in the D.C. area and the remainder dispersed nationwide. Since the late 1960s, the federal workforce numbers have remained relatively consistent, aside from annual tax season surges.

Nonetheless, Trump has targeted federal employment as part of his initiative to reduce government size.

Displaced workers may find themselves jobless for only a short period, as Namboothiry believes their skills could be highly sought after in various sectors.

“This presents a unique opportunity, as some businesses are actively seeking talent who may soon be exiting federal positions,” he mentioned. “Employers are likely to express interest in this talent pool.”

The layoffs initiated by Trump affect various government agencies, with some anticipating significant reductions.

The prospects for displaced employees will largely depend on their specific industries, according to Allison Shrivastava, an economist at the Indeed Hiring Lab.

“It’s likely that most of them won’t be unemployed for long,” she noted. “It ultimately varies by sector. For instance, individuals in accounting are currently in a favorable position, while those in software development may find job opportunities less abundant. The ease of securing new employment will largely depend on the specific field in which they work.”