Data shows tech jobs sank in DC last year. What’s ahead for 2026? 

While construction and healthcare jobs in the DC region boomed in 2025 and are projected to continue growing, other sectors, including tech, are falling after a tumultuous year in the DMV. 

The downturn, visible in various types of data, is also spurring action to help residents find new footing. 

Mass federal layoffs and other government actions hit the local economy in a major way, leaving thousands of public sector workers and government contractors searching for employment. Especially in an already-crowded job market, many of these laid-off workers aren’t equipped with skills that make them prime candidates for jobs in currently growing industries.

“Much of the private‐sector job growth that has occurred has been concentrated in construction, hospitality and healthcare sectors,” said Ximena Gates-Hartsock, cofounder and CEO of the workforce training startup BuildWithin.

“But we are seeing people transferring their skills,“ she added, “into consultancy, nonprofits and into their own businesses.” 

While the effects of federal shakeups have rippled across the country, it hit the capital region hard.

The disparity between local and national job loss can be attributed to the sheer quantity of government workers who live here, per Gates-Hartsock. More than 1 in 5 civilian federal workers lived in DC, Maryland or Virginia in September 2024, per the US Office of Personnel Management, far more than any other region. 

Within DC, as has been true historically, wards with the lowest median income continued to show higher unemployment rates in 2025. 

This tightening of government jobs and stagnation of professional services opportunities could spur people (especially young, early-career residents) to pursue careers in high-growth industries — including computing infrastructure like data centers, Gates-Hartsock said.  

However, even though the US Bureau of Labor Statistics considers software a high-growth industry, tech jobs in the DC region notably decreased between 2024 and 2025. 

Outside of tech, many former federal workers have project management and other professional services skills, which do translate to work in consulting and nonprofits. Some are turning to starting businesses themselves, Gates-Hartsock said.

And she’s seeing former federal IT workers look to upskilling courses and certifications in AI and other new technologies as they work to move into private sector roles. 

Local leaders have stepped in to help. The University of Maryland launched a free program about AI and business, and the state of Virginia partnered with Google to provide free or low-cost AI courses. And Gates-Hartsock’s startup offers tech training and is the developer behind the publicly-backed AI jobs matching platform Talentcapital.ai.

In 2026, Technical.ly will be following how the local economy adjusts to shrinking federal operations, continuing demand for data center construction jobs and how the private sector restructures operations with new technology. 

Have thoughts on that? Get in touch: dc@technical.ly.