How Trump's federal worker layoffs will hit beyond Washington

Published On Feb 23, 2025, 12:26 PM

President Trump's administration is planning significant layoffs affecting federal workers, especially those outside Washington D.C. More than 75% of federal workers are located in other states, meaning the potential job losses could ripple through local economies. Areas heavily reliant on federal employment could face economic instability, especially if the number of federal jobs is reduced by as much as 10%, which may lead to a broader impact on consumption and local economies. Defense and park services are particularly vulnerable, with some areas already reporting layoffs.

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Investors should consider the potential strain these layoffs could put on local economies, especially in regions dependent on federal employment. This could dampen consumer spending and local tax revenues, affecting businesses reliant on local consumers.

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