Federal workforce reforms enacted in 2025 coincided with steep declines in employee engagement, job satisfaction and workplace morale before conditions began stabilizing later in the year, according to a new analysis released by Gallup.
The report, based on Bureau of Labor Statistics data and Gallup workforce surveys, found federal employees experienced significantly higher levels of burnout and job-search activity than comparable state, local and private-sector workers following the reforms.
Researchers said the largest drops occurred during the second quarter of 2025, when federal worker engagement fell six percentage points more than among state and local government employees. During the same period, federal workers were roughly 15 points less likely to report high job satisfaction than their state and local counterparts.
Burnout also spiked. Federal employees were eight to nine percentage points more likely than similar public-sector workers to report high burnout levels during mid-2025, according to the analysis.
The report found federal workers were also substantially more likely to actively search for other jobs in early 2025, though that trend eased later in the year. By the fourth quarter of 2025, job-search activity among federal employees had largely returned to levels comparable with other sectors.
Gallup researchers said the data suggest federal agencies eventually adapted to the reforms, with many employee experience measures rebounding by late 2025 and into early 2026.
The analysis tied much of the decline in workplace engagement to deteriorating perceptions of leadership, workplace culture and organizational support.
Federal employees surveyed in 2025 were less likely to say they trusted leadership, felt connected to workplace culture, believed their organization cared about employee wellbeing or thought workers were treated with respect.
Researchers said those perceptions played a major role in determining how employees responded to organizational disruption.
“Employees who felt more connected and supported were less likely to experience sharp drops in engagement,” the report stated, pointing to the influence managers and agency leadership had during the transition period.
The report also noted the reforms achieved one of their stated goals: shrinking the size of the federal workforce. Employment data showed federal staffing levels began declining in late spring 2025 as retirements, resignations and reduced hiring accelerated.
Gallup concluded the findings highlight the importance of communication, management support and workplace trust during periods of major institutional change.
The organization recommended agencies focus on clearer communication, manager training, reinforcing organizational mission and monitoring employee wellbeing metrics in real time as modernization efforts continue.
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