Unemployment has increased in Washington, DC as Trump and Musk begin efforts to shrink the government

As President Donald Trump continues an unprecedented downsizing of the federal workforce, the DMV region is bracing for a sharp rise in unemployment. Just weeks into Trump’s aggressive push to cut government jobs, experts warn that this may only be the beginning of a wave of layoffs impacting the region.

The federal government, the nation's largest employer, has been directed by the new administration to accelerate staffing reductions. Agencies have already been ordered to terminate probationary employees—those still within their trial period—affecting more than 200,000 workers.

This follows an earlier buyout offer from the Trump administration, allowing federal employees to resign while receiving full pay and benefits until September 30. According to the Office of Personnel Management, around 75,000 employees opted for the deal as of February 12.

The DMV is particularly vulnerable, as 20% of the 2.4 million federal employees work in D.C., Maryland, and Virginia, according to the Partnership for Public Service.

Both D.C. and Virginia are already seeing a rise in unemployment claims, while Maryland has reported a slight decrease—for now. Senator Chris Van Hollen told FOX 5 he expects Maryland’s jobless numbers to climb as the layoffs take full effect.

Unemployment in D.C., Maryland, and Virginia

By the numbers:
According to the U.S. Department of Labor, for the week ending February 8—the latest available data—unemployment claims surged by 36% in D.C. and 12% in Virginia, while Maryland saw a temporary 5% drop.

Over the past six weeks, D.C. has received nearly 7,000 new unemployment applications—55% more than the previous six-week period.

Chip Lupo, an analyst at WalletHub, suggests the layoffs are driving these numbers higher.

"Since Trump took office, about 4,000 employees in D.C. have filed for unemployment insurance, and it’s likely that many of them were federal workers caught in the purge," Lupo said.

In Virginia, roughly 16,600 unemployment claims have been filed since the start of the year. In just the week ending February 8, nearly 3,000 applications were submitted—up 10% from the previous week.