Federal employee morale and workplace engagement fell sharply following major federal workforce reforms enacted in 2025, according to a new Gallup analysis that found higher burnout, lower job satisfaction and increased job-search activity among government workers during the transition period.
The report, published Thursday by Gallup researchers Christos Makridis and Camille Lloyd, analyzed Bureau of Labor Statistics data and Gallup workforce surveys comparing federal employees with state, local and private sector workers.
Researchers found federal employee engagement dropped more significantly than comparable public-sector workers during 2025, with the largest gap appearing in the second quarter of the year.
At the same time, federal workers reported steep declines in job satisfaction and increased burnout following workforce reductions, hiring slowdowns and elevated retirement and resignation rates tied to the reforms.
Gallup said federal workers were approximately 15 percentage points less likely than comparable state and local government employees to report high job satisfaction at the low point in mid-2025.
Burnout also increased substantially. Federal employees were eight to nine percentage points more likely than state and local government workers to report high burnout during the second quarter of 2025, according to the report.
Researchers additionally found a spike in federal employees actively searching for new jobs during early 2025, though that trend largely stabilized by the end of the year.
Despite the disruption, Gallup’s analysis found most major indicators improved by late 2025 and into early 2026, suggesting the federal workforce gradually adapted to the changes.
The report concluded that employee trust in leadership, workplace culture and perceptions of organizational support played a major role in determining how workers responded to the reforms.
Federal employees in 2025 were less likely to say they trusted leadership, felt connected to workplace culture, believed their organization cared about employee wellbeing or thought people were treated respectfully at work.
Researchers said workers who maintained stronger feelings of support and connection were less likely to experience severe declines in engagement during the restructuring process.
Gallup concluded the findings highlight the importance of leadership communication, manager support and employee wellbeing efforts during periods of organizational upheaval.
“Periods of reform or restructuring are not just operational events — they are human events,” the report stated.
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