Laid-off feds are making D.C.'s job market extra competitive
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Vying for Washington's white-collar jobs has become uber competitive as laid-off federal workers flood the market.
The big picture: At least 121,000 federal workers have been laid off or singled out for layoffs since Jan. 20, estimates CNN, and the DMV likely doesn't have enough white collar jobs to absorb the number of local former feds now looking for new positions, per Indeed.
- This comes as the Washington region sees signs of a recession in the wake of Elon Musk's DOGE cuts.
What they're saying: "It is the most competitive I've seen in 25 years," Chris Jones, founder of the political staffing agency PoliTemps, says of D.C.'s job market.
- What's especially unique about this market is that there are so many senior-level people with decades of experience now simultaneously vying for the same jobs, says Jones.
Some are having to take positions they're overqualified for, or do gig work to pay their mortgage or kids' tuition, he says.
- "Federal work in the District area has always been a pathway for people to get into the middle class and have secure employment and provide value to the country," Jones tells Axios." And I think now that is being shattered."
By the numbers: The share of federal employees filing initial claims for unemployment compensation has risen sharply in the District since President Trump took office, per Department of Labor data.
- While only 23 former federal employees filed an initial claim during the week ending May 3 — much lower than this year's high of 170 the week ending in Feb. 22 — every week since Trump's inauguration has seen unemployment claims in the double digits (and occasionally in the triple digits).
- Compare that to last year, when most weeks only saw claims in the single digits. (The highest topped out at 11.)
Plus: A quarter of surveyed Washingtonians who had a federal worker or contractor in their household at the beginning of the year say that person has now been let go or put on leave, per a recent poll from George Mason University's Schar School of Policy and Government and the Washington Post.
Zoom in: A Washington resident in their early 30s who lost their job at a nonprofit that implemented USAID and State Department grants tells Axios they've applied to between 50 and 100 jobs since February — and they've only landed one interview that didn't go anywhere.
- "I would be looking at a climate job, and then would read about how the EPA [fired workers]," says the resident, who asked for anonymity as they job hunt. "[And it's like] 'Okay, now I'm competing with a bunch of people who are actual experts.'"
- The job seeker and their spouse were about to start house-hunting before the DOGE firings. Now they're using their real estate savings to stay afloat. "It kind of really threw a wrench in all of our financial planning."
A former contractor for USAID who's in their early 40s, and also asked to be anonymous while they look for a job, says they've applied to over 100 jobs since February, with only five interviews. One open position they saw on LinkedIn Premium advertised that it had over 1,800 applicants.
- The former contractor said they previously could rely on networking to get a new job. No more: "I've been having to reach back a long way [in my job history] because my entire industry died."
- And now they're considering leaving D.C. altogether. "The job market right now here is somewhat impossible, and I'd almost rather not fight tooth and nail for one position [out of] 2,000 applicants," they say. "We have a little bit of beaten-down MAGA fatigue."
Zoom out: The Washington region is in danger of experiencing a talent drain as many of these former feds struggle to find new jobs locally, says Jones.
- "They're at a part in their life where they put in 15, 20 years to the government, and now the contract has been broken," he says. "They no longer feel responsibility or tethered to the DMV area."
Over 1 in 5 Washingtonians say they're seriously thinking about leaving the area in the next year, according to the George Mason and Post poll.
- That jumps to 45% when narrowed to those who have a laid-off federal worker or contractor in their household.
Between the lines: People with a good network and skills that could transfer to the private sector or a position in local or state government are in a better job-hunting position than those who don't, says Jones.
- His advice: "Look at all the options on the table," he says, emphasizing that it might be a good time to go back to school, relocate, or start your own business.
What we're watching: How this moment might affect the next generation who dreamed of joining the federal workforce.
- "People who have been going to school and looking forward to working in public service and government are now questioning whether it's the right thing for them to do," says Jones.