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D.C. businesses expect prolonged economic slump as federal layoffs unfold | Washington Times

October 09, 2025
  • D.C. Policy Center

On October 9, 2025, the Business Sentiments Survey was referenced in The Washington Times:

D.C. businesses are investing less in the local economy as they anticipate a prolonged financial downturn driven by federal worker layoffs, the D.C. Policy Center reported this week.

The nonpartisan think tank reported that 90% of 317 local business owners and executives responding to a survey said they had not hired new employees or expanded their physical footprint as of mid-July. Roughly 6 in 10 businesses cited federal budget cuts, agency relocations and mass layoffs driving down their profits.

Yesim Sayin, the D.C. Policy Center’s executive director, said businesses have seen fewer customers and less spending as the layoffs drive people into unemployment or financial uncertainty.

Responding to the D.C. Policy Center report on Thursday, the White House defended the downsizing as a right-sizing of the local economy.

“Washington, D.C.’s overreliance on federal government bloat to buoy its economy has contributed to persistently high unemployment rates, with D.C. often having the highest unemployment rate in the country well before this administration,” White House spokesman Kush Desai said in a statement to The Washington Times.

Read More: D.C. businesses expect prolonged economic slump as federal layoffs unfold
Additional reading: Business Sentiments Survey 2025 Quarter 3 results

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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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