New Jersey is grappling with a surge in federal job losses as the Department of Government Efficiency (DOGE) executes widespread layoffs. These workforce reductions, aimed at cutting costs and streamlining government operations, have affected thousands of employees in key federal agencies.
The layoffs are raising concerns over the state’s economy, public services, and long-term employment stability. With government employees making up a significant portion of New Jersey’s workforce, the consequences could be far-reaching.
DOGE Layoffs in New Jersey: The Numbers
The scale of the layoffs has been staggering. According to recent reports, layoffs nationwide surged by 245% in February 2025, with over 172,000 jobs cut across multiple industries. Federal job losses accounted for 62,242 of those cuts, with New Jersey among the hardest-hit states.
New Jersey saw federal job losses increase from 1,088 in February 2024 to a shocking 16,918 in February 2025, marking a 1,455% rise. The state’s unemployment rate is expected to climb as a result, further straining the local economy.
Impact on Federal Agencies
Several key federal agencies in New Jersey have been significantly affected by the layoffs, leading to disruptions in government services and operations.
Department of Veterans Affairs (VA)
One of the most concerning aspects of the layoffs is the impact on the Department of Veterans Affairs (VA). The VA is expected to lose over 80,000 employees nationwide, leading to major delays in healthcare, benefits processing, and support services for veterans.
Since nearly 30% of the federal workforce are veterans, these job losses hit former service members particularly hard, both as employees and as recipients of VA services.
Internal Revenue Service (IRS)
The IRS has laid off more than 110 employees in New Jersey, potentially affecting tax processing and refunds during the peak tax season. With fewer staff members handling returns, taxpayers could experience longer wait times for assistance and delayed refunds.
National Oceanic and Atmospheric Administration (NOAA)
NOAA has already cut over 2,300 jobs across two rounds of layoffs. These job losses may affect climate research, weather forecasting, and disaster response efforts. Given New Jersey’s vulnerability to hurricanes and extreme weather, the reduction in NOAA staff could pose significant risks.
Economic and Social Consequences of Federal Layoffs
Rising Unemployment and Economic Impact
The increase in federal job losses will likely push New Jersey’s unemployment rate higher, leading to reduced consumer spending and economic slowdown. As laid-off employees cut back on expenses, local businesses could experience declining sales, further straining the state’s economy.
Impact on Nonprofits and Community Services
The layoffs have also affected nonprofit organizations that rely on federal contracts and funding to provide essential community services.
Church World Service
This Jersey City-based nonprofit, which assists immigrants and refugees, was forced to furlough 79 employees due to funding reductions linked to the federal job cuts. As a result, critical support programs are now at risk. (Gothamist)
Reformed Church of Highland Park Affordable Housing Corporation
Federal funding cuts led to 60 job losses at this organization, affecting its ability to provide affordable housing assistance for low-income families in New Jersey.
Political Repercussions of DOGE Layoffs
Challenges to DOGE’s Authority
DOGE’s sweeping layoffs have sparked political and legal debates. Some lawmakers question whether the agency has the authority to implement mass firings of federal employees.
Florida Senator Rick Scott has challenged the legality of these layoffs, arguing that only the President and agency heads can remove federal employees. This debate could lead to potential legal battles and congressional investigations.
Potential Legal Challenges
Legal experts predict that unions and advocacy groups may file lawsuits against DOGE, arguing that the layoffs were conducted without proper oversight. The outcome of these legal challenges could determine the future of thousands of federal workers affected by the cuts.
What’s Next for Federal Workers in New Jersey?
With federal job losses mounting, many affected workers in New Jersey are searching for new employment opportunities. Here’s what they can do next:
- Apply for Unemployment Benefits – Those affected should file for unemployment assistance as soon as possible.
- Seek Alternative Employment – State and local governments may offer hiring opportunities for displaced federal employees.
- Monitor Policy Changes – Workers should stay updated on any congressional actions that could reverse or mitigate the layoffs.
Some lawmakers are advocating for funding restorations and hiring freezes to prevent further job cuts, but it remains uncertain if these efforts will succeed.
Conclusion
DOGE’s layoffs have created a significant crisis for New Jersey’s federal workforce, affecting thousands of employees and disrupting critical government services. The economic impact is expected to ripple through local businesses, nonprofits, and communities.
As political and legal battles unfold, affected workers and policymakers will need to navigate a complex landscape to find solutions. Whether these job losses are temporary or mark a long-term shift in federal employment remains to be seen.
For more detailed coverage on the economic impact of layoffs in New Jersey, visit Patch.
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