Doing Business in Greater Washington

Employment Trends


As home to the U.S. Government, the region has distinct advantages. Local companies have gained from increases in government spending, particularly on homeland security and defense. And with the government's long-term trend toward even more private-sector contracting, the business of government in Greater Washington just keeps getting bigger.

The trend towards contracting (in lieu of hiring) by the U.S. government has had a major impact on Greater Washington's economy. This trend has brought new opportunities for private-sector firms. At the same time, the federal government has simplified its procurement process to create a more commercial environment in which companies can compete to provide goods and services for federal agencies.

Greater Washington Federal Government and Private-Sector Employment As a Percentage of Total Employment

Year
Private Sector
Federal Government
1955 58.0% 35.3%
1965 62.6% 29.6%
1975 61.7% 26.0%
1985 70.9% 18.9%
1995 76.0% 13.5%
2005 79.3% 10.6%

 

Source: GWI Analysis of Bureau of Labor Statistics and Maryland DLLR data.

Note: Percents will not add to 100%. State and local government data is not included.

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