COG analysis shows disproportionate impact of federal job cuts in metropolitan Washington region

The Washington Metropolitan Statistical Area (MSA) lost 62,100 federal jobs from January 2025 to January 2026, putting the region's federal workforce total at its lowest level since 1990, according to COG's latest economic trends report. These cuts are part of an overall total of about 103,900 jobs lost in the region.

Federal downsizing took place across the country, but it disproportionately impacted the Washington MSA, a comparison of peer MSAs reveals. While the region had the highest concentration of federal workers to begin with, the 16.5 percent decline of its federal jobs from January 2025 to January 2026 far outpaces that of peer MSAs like New York at 7.4 percent and Philadelphia at 10.1 percent.

Neighboring Baltimore was the only region that lost a higher proportion than Washington-it shed 20.5 percent of its federal jobs over this same time period.

The overall unemployment rate in the Washington MSA also increased from December 2025 to January 2026, 3.8 to 4.4 percent. The COG report analyzes data from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau. The Bureau's federal jobs data is available from 1990.

"The numbers are stark. We cannot achieve long-term economic resilience without coordinated action," said COG Executive Director Clark Mercer. "COG was pleased to see that Mayor Bowser, Governor Spanberger, and Governor Moore have already met twice to discuss workforce development and other issues, and area leaders have been working across the public, private, nonprofit, and higher education sectors to advance several new collaborations. We need to build on this momentum."

Talent Capital, the region's first AI-powered workforce platform developed by the local technology firm BuildWithin, provides career resources and vetted training opportunities for job seekers. COG launched Talent Capital with Mayor Bowser and other area leaders this fall, and the platform currently connects more than 83,000 active users to 65,000 full-time jobs.

Similar efforts to support displaced federal workers include Mobilize Montgomery career center and events like the Pivot with Purpose Career Expo, which included sponsors like Virginia Works, the Maryland Department of Labor, and DC Workforce Investment Council.

COG's Learners Program is also creating a strong pipeline of skilled professionals prepared for permanent IT roles in the public or private sectors. The first cohort launched with funding from the Loudoun County Board of Supervisors, and as the program enters its second generation, COG hopes to expand with participation from more jurisdictions.

COG also continues to partner with Brookings Metro on the DMV Monitor, a new resource that tracks additional economic indicators and provides analysis in such areas as real estate, venture capital, and tourism.

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View COG's economic trends report and interactive dashboard