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Analysis reveals key insights into the U.S. federal workforce amid calls for major restructuring

As President-elect Donald Trump prepares to return to the White House, with ambitious plans to slash the federal workforce by up to 75%, a new analysis of federal employment data reveals critical insights about the size, structure, and demographics of the nation’s largest employer.

According to data from the Office of Personnel Management (OPM) and the Bureau of Labor Statistics (BLS), the federal government employs over 3 million people, including more than 600,000 U.S. Postal Service workers. Excluding postal employees, the federal workforce totals about 2.4 million, making the government the single largest employer in the United States—surpassing even corporate giants like Walmart and Amazon.

While the number of federal employees has grown modestly over the past two decades—averaging 1% annual growth since 2000—their share of the overall civilian workforce has remained relatively steady at 1.5%. Meanwhile, the Postal Service workforce has seen a sharp decline, shrinking by nearly a third since its peak in 1999.

The Department of Veterans Affairs (VA) remains the largest federal employer, with over 486,000 employees, primarily working in health care roles. In contrast, the Department of Education has just 4,245 employees, reflecting a longstanding Republican target for downsizing or elimination.

Contrary to popular belief, most federal workers are not based in Washington, D.C. Only about 18% of federal employees work in the capital region. California and Texas host the largest number of federal workers outside the D.C. area, with 147,500 and 130,000 employees, respectively.


Demographic and occupational breakdown

Federal employees are generally older and more educated than the overall U.S. workforce. Approximately 28% are aged 55 or older, compared to 23.6% of the general workforce, while fewer than 9% are under 30. Nearly a third of federal workers (31.5%) hold a bachelor’s degree, and 22% have an advanced degree, significantly higher than national averages.

The federal workforce is also more racially diverse, with 18.6% identifying as Black, compared to 12.8% nationwide. However, Hispanic representation remains lower at 10.5%, compared to 19.5% in the broader workforce.

Occupationally, the federal government skews heavily toward white-collar jobs. Health-related fields dominate, with nearly 364,000 employees working in health care roles. The most common job categories include nursing, administrative work, and information technology management.

Salaries and job protections

The average federal salary is $106,382 annually, reflecting the workforce’s concentration in specialized and professional roles. However, pay varies widely by agency. Employees at the Commodity Futures Trading Commission earn an average of $235,910, while those at the Armed Forces Retirement Home average $75,151.

More than half of federal employees have been in their roles for less than 10 years, with an average tenure of 11.8 years. Agencies like the U.S. Holocaust Memorial Museum have some of the longest-serving staff, while AmeriCorps has one of the shortest average tenures.

Job security remains a defining feature of federal employment. About 67% of federal workers are in the competitive service, offering strong civil service protections against arbitrary dismissal. Another 32% fall under the excepted service, with varied protections depending on their specific roles.

Finger Lakes Partners (Billboard)

Public perception

Public opinion on the federal workforce remains deeply divided. According to a Pew Research survey, 56% of Americans believe the government is “almost always wasteful and inefficient,” while 46% argue it often performs better than it’s given credit for.

Federal agencies like the National Park Service (76% favorable) and the Postal Service (72% favorable) enjoy broad public approval, while agencies like the IRS face more skepticism (38% favorable, 50% unfavorable).

Looking ahead

As Trump prepares to reshape the federal workforce, likely reinstating policies to make it easier to hire and fire federal employees, the findings underscore the complexities of such reforms. While critics argue for reducing government bureaucracy, supporters emphasize the essential services provided by federal workers, from veterans’ health care to disaster response and scientific research.

With tens of thousands of jobs potentially on the line, the debate over the future of the federal workforce will remain a defining issue as the new administration takes office.



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