Thousands of jobs lost in Pennsylvania and New Jersey following federal workers’ enrollment in a program related to Trump’s departure.
The recent employment data from the U.S. Bureau of Labor Statistics reveals a significant decline in the number of federal government employees in the Philadelphia region, dropping sharply in October. This decline appears to be reflective of the aftermath of President Donald Trump’s deferred resignation program, which allowed federal employees to resign while still receiving pay until the official end date of the program on September 30.
In October, the Philadelphia metropolitan area, which covers parts of Pennsylvania and New Jersey, experienced a reduction of approximately 2,900 federal jobs, marking a 5.3% decrease compared to the previous month. This month saw the steepest decline since July 2010 and ranked as one of the largest drops since at least 1990. Pennsylvania, as a whole, recorded a loss of around 4,800 federal positions, translating to a 4.8% decrease—the most significant downturn since October 2020. Meanwhile, New Jersey reported a loss of about 1,200 federal jobs during the same period.
Industry experts assert that this reduction in employment is likely to have extensive repercussions beyond the immediate job loss. Union leaders point out that the diminishing federal workforce affects local economies, disrupting various sectors including retail, public transit, and tax revenue streams. The impact is expected to be felt in the community at large, as the loss of federal jobs can initiate a chain reaction affecting local businesses and services.
Over the last five years, employment in the Philadelphia metro region has risen by approximately 12.6%. However, recent job losses in federal employment have effectively negated previous gains, reverting the area to levels seen prior to this growth period.
Historically, considerable declines in federal employment in Pennsylvania and Philadelphia have coincided with economic downturns, such as the recessions in the early ’90s and the Great Recession, alongside the recent impacts of the COVID-19 pandemic. As the economy fluctuates, the federal workforce has often been a bellwether for local economic health.
Looking ahead, federal employment data will continue to be scrutinized, especially given uncertainties stemming from potential future government shutdowns that may prompt additional workforce reductions. The implications of these layoffs not only affect the livelihoods of federal employees but also the broader economic ecosystem reliant on their contributions. As the situation evolves, further evaluations will shed light on the long-term ramifications for federal employment and local economies across the nation.
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