Briefing
Do Federal Layoffs Have Ripple Effects on Local Economies?
Abstract: We investigate the extent to which low-skill job openings have accompanied reductions in the federal workforce. As of May 31, 2025, we find small effects. Our findings suggest that the local demand channel identified in the economic literature — whereby high-skill jobs sustain low-skill ones via high-skill workers' demand for nontradable goods and services — is rather muted so far for federal jobs.
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https://www.richmondfed.org/publications/research/economic_brief/2025/eb_25-36
Description: Briefing
Bibliographic Information
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2025-09-24
Volume: 25
Issue: 36