US prepares for mass government layoffs as DOGE intensifies cuts

The Trump administration told US government agencies to begin preparing for further layoffs, with fears that the mass firings could affect economic growth.

Efforts to slash the federal workforce have proceeded fitfully so far: Thousands of workers have been fired, but opponents have filed lawsuits contesting the dismissals, creating widespread uncertainty.

Economists warn that the campaign could slow buoyant US growth as the newly unemployed reduce their discretionary spending. Given that in 35 states there is at least one county in which more than 5% of the workforce is employed by the federal government, the impact could be felt nationwide.

While overall unemployment figures may not be affected in the short term, the consequences of so many workers entering the job market at once are uncertain.