Following federal job and spending cuts, the Washington , DC, region has seen a sharp increase in unemployment claims, suggesting more economic effects are coming. Lucy Dadayan, a state and local finance expert at the Urban Institute, spoke with the Washington Post about how approximately a quarter of the city’s gross domestic product is directly tied to the federal workforce. “If we were to see, for example, a 10 percent reduction in the federal employment, we estimate that this would cause a 2.6 percent decline in the city’s GDP [gross domestic product],” she said. “In turn, this would lead to a reduction in salaries, with total industry compensation expected to decrease by around 3.2 percent.” 

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