Ignoring a problem doesn’t solve it.

As companies increasingly seek to take any course of action to keep everyone in an office, the size of labor markets in urban areas will decrease.  Over the past few years, Washington, D.C. has witnessed a surprising trend — a steady decline in its workforce size. For a city that has been the epicenter of political power and a hub for professionals across various sectors, this change has raised eyebrows and spurred discussion among policymakers and analysts. The COVID-19 pandemic played a significant role in popularizing remote work. Companies, even those headquartered in D.C., are now more open to hiring talent from anywhere, which reduces the need for local staffing. D.C. is notoriously expensive. From housing to daily expenses, the cost of living has become prohibitive for many, causing potential workers to look elsewhere for employment opportunities. Reductions in the federal budget can lead to layoffs or hiring freezes in various departments and agencies, directly impacting D.C.'s workforce.

The decline in workforce size in Washington, D.C. is not just a matter of numbers. It carries with it several consequences. A shrinking workforce can reduce the city’s GDP and tax revenues, which are essential for infrastructure and other public services. If only the well-off can afford to live and work in D.C., it could lead to reduced diversity in the city’s professional scene. A homogenous workforce is less innovative and misses out on the benefits of varied perspectives. As professionals move out or opt for remote opportunities, local businesses, especially those that rely on office foot traffic like restaurants and cafes, might face downturns.  While the high cost of living has driven many away, a reduced workforce could lead to decreased demand in the housing market, potentially stabilizing or even decreasing rents and property prices.

The long-term consequences are significant, and inaction will not help.