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US federal workforce falls to lowest level in 60 years

US federal workforce falls to lowest level in 60 years

Rule Changes

Deferred resignations, probationary firings, and reductions in force cut federal headcount by more than 10 percent in a year

Today: Confirmations of 60-year workforce low

Overview

Updated 1 hour ago

The US federal civilian workforce has dropped to about 2.7 million employees, the smallest since 1966. More than 300,000 workers left between January 2025 and early 2026, an 11% reduction in just over a year.

The cuts reached nearly every major agency. The Department of Education lost more than 45% of its staff; Agriculture, Housing and Urban Development, and State each lost over a quarter. The reductions came through a deferred resignation program, terminations of probationary workers, and formal reductions in force ordered by the executive branch without new legislation from Congress.

Why it matters

The federal workforce is now a smaller share of US employment than ever recorded, slowing services from disaster repair to Social Security.

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Key Indicators

2.7 million
Federal civilian employees
The smallest federal workforce since 1966.
11%
Workforce reduction since January 2025
Over 300,000 workers departed during the period.
45%
Department of Education staff cut
The deepest reduction among major federal agencies.
129,000
Employees took deferred resignation
Left agencies by September 30, 2025 while retaining pay and benefits.
348,219
People left federal jobs in 2025
Up 80.8% from 2024; hiring fell 55.6% in the same period.

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People Involved

Organizations Involved

Timeline

January 2025 September 2026

6 events Latest: Today
Tap a bar to jump to that date
  1. Confirmations of 60-year workforce low

    Today Report

    Bureau of Labor Statistics data showed the federal workforce at about 2.7 million, the lowest level in 60 years, with employment holding steady through 2026.

  2. BLS data puts workforce at 2,665,000

    Data release

    BLS reported federal civilian payroll at 2,665,000, the smallest since May 1966 and the deepest peacetime 12-month drop on record.

  3. Pew documents 348,000 departures in 2025

    Report

    Pew Research Center reported 348,219 people left federal employment in 2025, up 80.8% from 2024, while hiring fell 55.6%.

  4. Reuters reports workforce at decade low

    Report

    OPM data showed the federal workforce at its lowest level in at least a decade, with cuts hitting nearly every major agency.

  5. Deferred resignation deadline passes

    Policy

    Federal employees who accepted the deferred resignation offer departed; most separations came in the second half of 2025.

  6. Trump begins federal workforce reductions

    Policy

    Trump took office and ordered agencies to identify probationary employees for removal and prepare reductions in force.

Scenarios

1

Federal workforce stabilizes near 2.7 million

Likely Resolves by Feb 10, 2027

Discussed by: BLS data analysis and Dr. Randal Olson's tracking, which notes monthly declines have slowed sharply

Monthly job losses tapered from 25,000 to 50,000 during spring and summer 2025 to about 9,000 by April 2026. If the trend holds, federal employment settles near its current level as deferred resignation departures complete and agencies hire replacements.

2

Agencies rehire and workforce partially recovers

Possible Resolves by Aug 10, 2027

Discussed by: Dr. Randal Olson, who reports some agencies are quietly rehiring after discovering they cannot perform basic functions

Agencies that cut too deeply find they cannot meet core missions and begin rehiring. Olson's analysis says this is already occurring at some agencies. If rehiring outpaces new departures, federal employment could climb back above 2.8 million during 2027.

3

Further cuts push workforce below 2.5 million

Unlikely Resolves by Aug 10, 2027

Discussed by: Not currently forecast by cited analysts; a tail risk if additional reductions in force proceed

If the administration orders further reductions in force or agencies face new budget pressure, the workforce could fall below 2.5 million. None of the cited analysts expect this, and monthly declines have slowed sharply since mid-2025.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

August 1981

Reagan's PATCO firings (1981)

President Reagan fired more than 11,000 air traffic controllers who went on strike illegally, replacing them with military controllers and new hires. It was the largest mass termination of federal employees in modern history.

Then

The strike collapsed within days and the union was decertified.

Now

The firings established that the executive branch can remove federal workers on a large scale in a single action.

Why this matters now

Both events show the executive branch can shed thousands of federal employees quickly, and that such removals carry lasting consequences for the agencies involved.

1993-1998

Clinton-Gore reinvention (1993-1998)

The Clinton administration cut federal employment through buyouts and early retirement in the 1990s. Annual reductions peaked at 3.4% of the workforce, the previous post-1950 record for peacetime federal downsizing.

Then

Agencies absorbed the cuts through buyout packages and early retirement incentives rather than mass firings.

Now

The workforce did not fully rebound after the reduction ended, leaving the government permanently smaller.

Why this matters now

The current cuts ran at roughly three times the Clinton-era annual pace, making the 1990s the closest precedent for a large peacetime drawdown of federal staff.

Sources

(7)