DC-area economy, seemingly ‘recession-proof,’ is looking shaky

Published September 12, 2025 6:09am ET



For decades, the Washington-area economy has been considered “recession-proof” due to the size and scope of the federal workforce in and around the District of Columbia. But multiple economic indicators suggest the label could be slipping.

Unemployment is rising, and payrolls are shrinking in the public and private sectors. This follows federal layoffs and the federal takeover of the Metropolitan Police Department in President Donald Trump’s second, nonconsecutive term.

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