One objective of the second Trump administration has been to overhaul and reduce the size of the federal government. In the first few months, hard data showed no substantial decline in federal government employment, which was not unexpected. But with seven months of data now available, reductions in federal employment have become more apparent.
This chart of the week tracks federal government employment—from January 2016 to July 2025—relative to its January 2025 level. As the chart shows, federal government employment has declined nearly 5 percent in the broader D.C. region since January 2025, 3.2 percent in the District, and 2.1 percent across the nation as a whole. The cuts to federal employment negatively affect not only those laid off but also many of the region’s businesses—which was a key finding from the third round of the D.C. Policy Center’s Quarterly Business Sentiments Survey.
Should current trends persist or worsen—with more terminations or government employees not having their contracts renewed—the federal employment outlook will become even bleaker, placing further strain on the regional and local economies.
Data notes:
Federal government employment data was obtained via FRED: District of Columbia D.C. region, and the nation. The data are not seasonally adjusted.