
Elon Musk listens as U.S. President Donald Trump addresses concerns in the Oval Office at the White House in Washington, D.C., on February 11, 2025.
Photo by Kevin Lamarque | Reuters
President Donald Trump’s ongoing initiatives to terminate thousands of federal employees have coincided with an increase in unemployment claims in Washington D.C., a trend that may worsen as these initiatives escalate.
Since Trump took office, nearly 4,000 individuals in the district have sought unemployment benefits as part of a substantial increase that commenced at the start of the year, according to unadjusted Labor Department statistics.
In total, nearly 7,000 claims have been registered over the first six weeks of the year, reflecting a rise of approximately 55% compared to the prior six-week duration. Claims surged to 1,780 for the week ending February 8, marking a 36% uptick from the preceding week and over four times the amount reported during the same timeframe in 2024.
In contrast, the overall number of unemployment claims across the U.S. has remained relatively stable, with the four-week moving average for initial claims holding steady at 216,000. This figure has shown little change since the year’s start and has trended downward for much of the past few months.
The increase in claims from D.C. aligns with directives from the Trump administration and the Department of Government Efficiency, led by Elon Musk, which has mandated layoffs throughout the federal structure and introduced buyout options for early retirement.
“I anticipate a further rise, and we will certainly monitor this closely,” remarked Raj Namboothiry, Senior Vice President at Manpower North America, a workforce solutions organization.
While it remains unclear how many of these claims are directly attributable to federal workers, the uptick corresponds with the White House’s orders for the dismissal of probationary staff alongside numerous others, as the administration pursues a comprehensive reduction in workforce size. Additionally, about 75,000 employees have opted for the buyout program.
As of December 2024, Washington D.C. had one of the nation’s highest unemployment rates at 5.5%, lagging only behind Nevada, according to the Bureau of Labor Statistics. Conversely, the metropolitan area, including Arlington and Alexandria, Virginia, recorded only a 2.7% rate. The national unemployment rate stood at 4.1% before decreasing to 4% in January 2025.
Wider Labor Market Remains Resilient
Namboothiry noted that the reduction of federal jobs could pose challenges in the region; however, he characterized the national employment landscape as “fairly stable.”
“Certainly, the numbers are quite considerable,” he admitted. “Nevertheless, given the diverse range of geographical, skill-based, and sectoral distributions, I don’t foresee this significantly altering the overall market dynamics.”
There are approximately 2.4 million federal employees nationwide, excluding postal workers, with nearly one-fifth located in the D.C. area and the remainder dispersed across the country. Excluding seasonal fluctuations, this workforce has remained relatively constant since the late 1960s.
Nevertheless, Trump has targeted federal employment as a key component of his strategy to downsize the government.
Displaced workers might not remain unemployed for long. Namboothiry believes their skill sets will be sought after in certain sectors.
“This creates opportunities, as clients are in search of talent that may soon be available,” he commented. “We could see discussions within the employer community regarding this skilled talent pool.”
The proposed cuts by Trump are expected to affect various agencies, with some anticipating significant reductions.
The fate of those affected will hinge on their specific fields of expertise, according to Allison Shrivastava, economist at the Indeed Hiring Lab.
“It’s possible that most won’t remain jobless for extended periods,” she indicated. “It really depends on the sector. For instance, if you’re in accounting, that field has been performing robustly in terms of job listings. Conversely, software development may be facing lower demand, impacting ease of job placement based on the particular industry.”
