As home to the U.S. Government, the Greater Washington region has distinct advantages. Local companies have gained from increases in government spending, particularly on homeland security and defense.
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 created 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
Download Data [XLS]
| 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% |
| 2006 |
79.4% |
10.4% |
| 2007 |
78.4% |
11.4% |
| 2008 |
78.0% |
11.6% |
| 2009 |
77.2% |
12.2% |
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.
Spending & Procurement Trends
Since the mid-1980s, total overall federal procurement in Greater Washington has continued to rise consistently to $66.5 billion in 2008. From 1998-2008, federal procurement in the region averaged an annual increase of 10.6 %.