Federal Layoffs Will Hurt Rural Counties

Editor’s Note: This post is from our data newsletter, the Rural Index, headed by Sarah Melotte, the Daily Yonder’s data reporter. Subscribe to get a weekly map or graph straight to your inbox.
In a radical move to stave off perceived bureaucratic bloat, the Trump administration has laid off thousands of federal employees, including rural workers in public land agencies.
To pay for a proposed $4.5 trillion in tax cuts, the Trump administration has fired thousands of federal workers, including 1,300 workers at the CDC in Atlanta, more than 1,000 at the Department of Veteran Affairs, and 3,400 at the Forest Service.
GOP lawmakers are also eyeing cuts to social programs, like Medicaid, that help the poor and working class.
When you picture federal employees, you might imagine bureaucrats in suits and ties in pristine DC offices. But over a quarter million federal employees are stationed in rural counties across the country in positions like park rangers, field biologists, or grazing managers, just to name a few of the possible jobs.
President Trump’s firings will hurt many rural communities that rely on the federal government for a large share of their economic base.
The following map shows the percent of total wages in 2023 that came from federal employment.
(The latest county-level data we have on industry wages and employment is from 2023. These figures don’t represent recent federal layoffs. Figures are in 2023 inflation-adjusted U.S. dollars.)
In the above map, I chose to represent the share of total wages rather than the share of total employment because federal jobs pay more, on average, than private sector jobs in rural counties. Wages might therefore be a better indicator of the federal government’s economic importance.
"These higher, more stable wages would result in more local spending, supporting local businesses and communities," said Megan Lawson, Ph.D., of Headwaters Economics in an email interview with the Daily Yonder.
In 2023, wages in rural private sector jobs were $50,600 per job, on average, compared to $79,300 per job in the federal government.

Federal jobs only make up 1.6% of the total rural workforce, but in many rural communities, they are one of the largest employers.
"Especially in the West, where many federal layoffs are affecting public land agencies, these employees will not be able to manage our natural resources and serve the public,” Lawson said. “Our gateway communities whose economies depend on natural resources or recreation on federal land will feel the ripple effects when the resources and their visitors aren't being managed well. It's unclear how quickly these effects will be felt."
Federal wages accounted for $21 billion in nonmetropolitan, or rural, counties in 2023.
In 2023, federal jobs made up 20% of the total workforce in rural Garfield County, Washington, a community in southeastern Washington. Garfield County lies partially within the Umatilla National Forest, which spans 1.4 million acres in southern Washington and northern Oregon.
Employment in the federal government made up 29% of wages, meanwhile, representing a total of $11 million in 2023.
In Santa Cruz County, Arizona, 12% of the workforce was employed in the federal government in 2023, while 25% of all wages came from federal jobs, representing a total of $199 million in wages.
Santa Cruz is a rural county in southern Arizona that borders Mexico. The Coronado National Forest, a 1.7 million acre piece of federal land, lies almost entirely within the county.
We don’t know whether all of the federal jobs in Santa Cruz and Garfield counties are in the National Forest Service, however. The data doesn’t tell us. Some of those federal positions could have been remote workers for other federal agencies.
The post Federal Layoffs Will Hurt Rural Counties appeared first on The Daily Yonder.