DOGE is laying off thousands: what impact will it have with unemployment and the economy?

Published On Feb 26, 2025, 10:57 AM

The article discusses the potential economic impact of federal workforce layoffs initiated by Elon Musk's Department of Government Efficiency (DOGE). The administration aims to cut costs through layoffs, buyouts, and contract cancellations. It is projected that approximately 400,000 federal workers might be laid off over the course of 2025, which could put pressure on the labor market and increase unemployment rates. Experts believe these layoffs will initially be seen in unemployment insurance claims and could hinder overall payroll employment growth. While the private sector might absorb some of these workers, the broader implications for the economy could be negative, especially if layoffs increase significantly.