The recent wave of federal workforce reductions is poised to have significant economic repercussions, with potential impacts extending far beyond the immediate job losses. While the latest jobless claims report may not yet reflect these changes, the implications for the economy and CRE sector are substantial.
The layoffs and buyouts affecting tens of thousands of federal workers are expected to have a multiplier effect, potentially impacting millions of federal contractors and employees of companies doing business with the government. This ripple effect could extend well beyond Washington D.C., affecting various sectors of the economy.
“Right now, we are definitely talking a lot about DC federal employment being affected,” Tara Sinclair, an economics professor at George Washington University, told Bloomberg. “But it could go broader, either directly from layoffs or indirectly, because there are a lot of people that have jobs because of the type of work that the federal workforce does.”
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