09-05-2025
D.C.-area economy starts to show deep impacts of federal spending cuts
The D.C. region's economy is teetering on the edge of a painful slump, experts warn, as the Trump administration's spending cuts, including the elimination of thousands of federal jobs, take their toll on an area that was already struggling to recover from the impacts of the pandemic.
In the city, the number of unemployed residents was up by 12.2 percent in February compared with a year ago, reaching 24,558, even before many of the Trump administration's actions had taken effect, according to the most recent analysis by the D.C. Office of the Chief Financial Officer. New unemployment claims were up 167 percent, to 4,885. Among federal workers, unemployment claims jumped to 285, from just eight in February 2024.
