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The Washington region lost 62,100 federal jobs between January 2025 and January 2026, shrinking its federal workforce to the lowest level recorded since federal employment data for the area began in 1990.

The 16.5% decline was surpassed only by the nearby Baltimore region, where federal employment fell 20.5% during the same period, according to a Metropolitan Washington Council of Governments analysis of U.S. Bureau of Labor Statistics data. Philadelphia lost 10.1% of its federal jobs, while the New York statistical area recorded a 7.4% decline.

Many of the reductions came amid efforts by the Department of Government Efficiency to cut the federal workforce. President Donald Trump created the department, widely known as DOGE, through a January 2025 executive order and selected billionaire Elon Musk to lead it. The group operated until fall 2025.

The losses extended well beyond federal agencies. The region shed about 103,900 jobs overall from January 2025 to January 2026, while its unemployment rate rose from 3.8% in December to 4.4% in January.

Fairfax County’s unemployment rate climbed from 2.7% to 3.8% over the year. Loudoun County’s rate increased from 2.7% to 3.7%, and Prince William County’s rose from 2.9% to 3.8%.

“The numbers are stark,” Metropolitan Washington Council of Governments Executive Director Clark Mercer said. “We cannot achieve long-term economic resilience without coordinated action.”

Mercer pointed to meetings involving D.C. Mayor Muriel Bowser, Virginia Gov. Abigail Spanberger and Maryland Gov. Wes Moore, as well as emerging collaborations among public agencies, businesses, nonprofit organizations and higher-education institutions. He called for regional leaders to build on that work.

George Mason University economist Keith Waters said the latest figures reflect the continuing contraction that followed federal workers’ acceptance of a deferred retirement package in October.

“It certainly takes some time for these things to come through the system,” Waters said.

The reductions also significantly affected federal contractors, he said. However, Waters suggested direct federal employment could recover modestly by the end of 2026 if agencies rehire for positions they determine are more essential than initially believed.