In early 2025, the Bay Area faced significant federal job cuts, losing 600 positions out of California's total of 1,200 federal job losses. This decline, driven by the Trump administration's downsizing initiative, occurred at nearly three times the rate seen statewide and was nearly double the national trend. The cuts exacerbate existing job market challenges in the Bay Area, contributing to a larger loss of 14,700 nonfarm payroll jobs. Experts warn that these federal job losses are detrimental to sustaining positive employment momentum in the region.
As the Trump administration pursued a massive downsizing this year, the Bay Area lost more federal jobs than any other part of California, according to seasonally adjusted numbers compiled by Beacon Economics and the state Employment Development Department.
Most people don't realize the federal government is a major employer and job driver,” said Russell Hancock, president of San Jose-based think tank Joint Venture Silicon Valley.
The loss of federal jobs creates another headwind for the region as it attempts to sustain some positive momentum on overall employment,
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