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D.C.’s Workforce Is Still Recovering From Massive Federal Job Cuts | The Washington Sun

September 30, 2026
  • D.C. Policy Center

On September 25, 2026, the D.C. Policy Center 2026 State of Business Report was quoted in the Washington Sun about the job market in the District:

[The report] paints a picture of a struggling city trying to claw its way back from devastating layoffs made in the name of government efficiency. In a region with the highest concentration of federal workers in the country, high unemployment rates are seeping into many aspects of the local economy, making it worse for wear.

“For more than two decades, the city benefited from a growth model driven by federal expansion, population growth, rising commercial real estate values, and an influx of highly educated workers,” the report said. “That growth model is now under pressure.”

Read more: D.C.’s Workforce Is Still Recovering From Massive Federal Job Cuts

Additional reading: 2026 State of Business Report: Meeting the Growth Challenge

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D.C. Policy Center


Established in 2016, the D.C. Policy Center is a non-partisan research and policy organization committed to advancing policies for a strong and vibrant economy in the District of Columbia. Through rigorous research and collaboration, the D.C. Policy Center develops and tests policy ideas, disseminates its findings, and engages in constructive dialogue and debate.

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