Trump/Musk Cuts Fall Heavily on North Carolinians
This story is based on interviews with a handful of Triangle residents recently fired, furloughed or placed on administrative leave from their jobs with the federal government, or a contractor receiving federal funding. Given the sensitive nature of the conversations, most of the interviewees asked that their comments remain anonymous. They give voice to an unprecedented crisis happening throughout the state and country: sudden and massive layoffs in the public sector, a fragile safety net for health insurance and unemployment benefits, and a need to quickly transfer skills and expertise into new sectors where job opportunities are limited. Those interviewed for this story feel “overwhelmed,” “unappreciated,” “devastated,” and “terrified” by the situation into which they have suddenly been thrust.
Stop Work Orders Fill Inboxes
The same day she had an appointment at her bank to get an approval letter for her first mortgage, this Triangle employee, who evaluated USAID investments in child and maternal health, was devastated to receive a stop work order. Shortly after receiving a calendar invite for a 4:15 meeting with Human Resources, another white-collar worker, who managed USAID-backed projects to help keep America “strong, prosperous, and safe,” was told that she was furloughed, effective immediately. On Valentine’s Day, a team member participating in peer review for NIH’s medical research grants was placed on administrative leave, just one more step, she said, in the Trump Administration’s efforts to “rip away funding for critical research, dismantle our scientific infrastructure and compromise training for the next generation of scientists.” Passionate about her work promoting vaccines, this furloughed (and recently reinstated) employee with the U.S. Food and Drug Administration no longer feels that her values align with those of her boss at the Department of Health and Human Services and is actively looking for jobs in other countries.
These are just a few of the thousands of workers recently fired, furloughed or placed on administrative leave in North Carolina, a state especially vulnerable to cuts in federal spending. Universities, hospitals, nonprofits and small businesses in the Triangle, a hub for biomedical research, were awarded over $2 billion last year in research grants from the National Institutes of Health, more than all but five other states. Foreign aid from USAID infuses the state’s economy with $1 billion annually, more than all but three other states.
“There is nowhere to go”
While job losses are a normal part of the ebbs and flows of a business cycle, “the abruptness and massive scale of these layoffs are unique,” said Brianna Clarke-Schwelm, executive director of the North Carolina Global Health Alliance. “Thousands of unemployed public sector workers and federal government contractors are - literally overnight - trying to transfer years of expertise to other sectors while navigating all of the personal upheaval of being unemployed.”
One of those workers, a furloughed RTI employee, speaks from personal experience: “Nobody has been in this position before, as an entire industry is imploding, and a glut of displaced workers is applying for the same, few jobs.” Some of these workers have banded together to network, share tips on navigating social services, and commiserate over the challenges of seeking jobs in a disappearing sector of the economy. “I have applied for over 100 jobs, entry level to director level,” said Alison, who was fired without cause from her position with a USAID contractor and asked that only her first name be used for this story. “Some of these jobs I could do in my sleep, but I have not gotten one single interview. Nor has anyone else in my network. It feels like there is nowhere for us to go.”
Some suggest the roadblock is because our economy is already in a white-collar recession, especially in education, public health, social justice, and public policy spaces where federal funding has dried up, job losses mount, and wages soften. Based on a recent story in Economic Times, Gen Z has been especially hard hit by the wave of layoffs: the jobless rate for the 20-24 age group has jumped by 2.8 percentage points to 8.3% since a recent low in April 2023. That’s a whopping seven times the rate for prime-age workers between the ages of 25 and 54.
“It's terrifying”
To suddenly lose a job, with nowhere to go, raises short-term and long-term concerns. For the short term, displaced workers interviewed for this story are shocked by how “paltry” and “restricted” the unemployment insurance benefits are in North Carolina compared to other states. The data back them up. According to the North Carolina Center for Justice, the Tar Heel state’s $350 maximum weekly benefit for up to 12 weeks ranks in the bottom five states for its stinginess – putting workers suddenly thrown out of work at higher risk of a utility shut-off, a car repossession, or even an eviction.
Then there’s the stressor of losing health insurance coverage, typically at the end of the month in which a worker is terminated, at a time when finding a new job may easily take 6 – 12 months. Securing stop-gap health insurance during this transition can be time-consuming, nerve-wracking, and prohibitively expensive. While awaiting a decision on her application for Medicaid, Alison is going without health insurance for the first time in her life. As a single parent, “it’s terrifying,” she said.
To pivot or not to pivot
For the longer term, displaced workers are grappling with a major career and life decision: wait to see if their jobs come back (some are being reinstated) or pivot to something entirely different. A pivot can feel daunting for those who have devoted many years and dollars to develop a strong resume in their field. Explained Alison: “I have a master’s degree. I am 15+ years into my career in project management. I speak four languages. But there are no more jobs in the foreign assistance sector where I can apply my skill set and I’m not in a position to go back to school to acquire new skills.”
So, Alison and many other displaced workers are trying to secure jobs with value-aligned nonprofits or bring their socially-driven, global perspectives into private spaces where they can make an impact. They are also looking at state and local governments, which are actively recruiting displaced federal workers by running “you’re hired” ad campaigns and fast-tracking job applications. North Carolina Governor Josh Stein just announced a new website connecting job seekers with the Office of State Human Resources, saying the state is “proud to welcome smart and dedicated, public-spirited people to join our team.” Anne Arundel and other counties are hosting job fairs. Some “you’re hired” campaigns have even gone global. France's Aix-Marseille University recently announced a Safe Space for Science program welcoming scientists who "may feel threatened or hindered" in the United States and want "to continue their work in an environment conducive to innovation, excellence and academic freedom.”
In these times of flux, one thing is clear in the minds of those interviewed for this story: things are happening fast and the changes will be massive, affecting all aspects of our lives. “A lot of people are pulling their kids out of childcare,” said Clarke-Schwelm. “They’re reconsidering their careers. They’re thinking about their mortgages. They’re thinking about if they’re going to stay in North Carolina – if they can afford to stay living here.”
Building a stronger safety net
Help build a stronger safety net for displaced workers in North Carolina. Here’s how:
▪ In the General Assembly, House Bill 48 was approved in February, boosting the weekly maximum unemployment benefit from $350 to $450 for up to 12 weeks. That bill is now in the Senate, but at this writing has not been assigned a number. Contact your State Senator and urge their support.
▪ Email your County Commissioners during this budget season and ask that they support increased funding for community colleges and nonprofit organizations providing training and retraining for local jobs paying family-sustaining wages.
▪ Contact your US Representative to urge their support for the Compassion for Vulnerable and Struggling Workers Act (HR 1597), ensuring that federal workers fired without cause continue to receive health care coverage through the Federal Employees Health Benefits program.
▪ Sign up with Common Cause North Carolina to get breaking news and action alerts about democracy in our state. As just one example, you will be alerted when there is a nearby rally to protest DOGE’s indiscriminate and sometimes illegal cuts in federal spending and its workforce.