As large layoffs continue to affect the federal workforce, many former employees are now looking toward state and local governments for their next career steps.
While some of these organizations are eager to welcome them, many capable, displaced job seekers are finding it difficult to secure suitable replacement roles.
Research conducted by Oxford Economics predicts that the federal workforce could decrease by 200,000 positions by the end of 2025. While this isn’t expected to have a major nationwide impact, those in or near Washington, D.C., are particularly anxious about their job security.
5 jobsEmploymentAmerican
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- Director of Regulatory Policy for the Inter-American Expressway Natural Gas Association, Washington
- Federal Issues Manager, BP Energy, USA
This situation is likely tied to ongoing job freezes, budget limitations, and outdated hiring processes in many state governments, which is why the recruitment process is lagging.
Public sector hiring has historically been slower than in the private sector due to deficits, clearance protocols, and the need for various administrative approvals.
Recent data emphasizes that local government roles take around 130 days to fill, while state government positions take about 96 days, compared to just 36 days for private sector positions since 2020.
That said, some states and local governments are stepping up their efforts to hire displaced workers. For instance, New York’s “New York Wants You” ad campaign has resulted in over 100 interviews and the hiring of 28 new employees as of March.
Additionally, more than 250 job seekers have participated in career webinars and accessed career resources.
In Maryland, which has a high concentration of federal workers outside D.C., Governor Wes Moore has announced initiatives to support those affected by federal layoffs.
Included in these efforts is a Civil Service Resource Website designed as a centralized hub for information and resources for impacted workers and their families.
The Maryland Department of Labor’s webpage for federal workers also offers information on unemployment benefits, job guidance, and reemployment support, which has attracted over 50,000 visitors so far.
To provide context, Maryland lost approximately 3,500 public sector jobs in March 2025, following a $2 billion spending cut linked to a loss of 2,700 federal positions.
Streamline recruitment
In reality, the success stories are more the exception than the rule, and the overall landscape is quite complex.
While budget constraints and fiscal instability are ongoing issues, the challenges are further intensified by an overwhelmed HR sector that struggles to efficiently process large volumes of applications.
One prospective solution could be utilizing technology, especially AI, to streamline hiring processes and ensure talented individuals aren’t overlooked.
For instance, Robin serves as a conversational AI tool that engages job seekers in real time, helping them navigate job listings and gain a clearer understanding of their roles. This signals a trend toward a more personalized and responsive digital job search experience.
Moreover, there’s Dash, an AI-driven application and evaluation tool that assists HR and recruitment professionals in efficiently identifying and hiring top talent by automating and organizing applications, thus saving time on tedious tasks.
Looking for the future
Despite the hurdles faced by former federal workers, there’s hope that state and local governments will absorb a significant portion of the federal workforce until circumstances improve.
The realization of these hopes, however, largely hinges on political willingness, budget flexibility, and the individual qualifications of the workers.
In the meantime, laid-off federal employees remain in limbo as they wait and apply for new opportunities.
Interested in exploring new jobs? Check out thousands of listings on the Hill Job Board.
