Federal Government Layoffs Hit a 4-Year High, Threatening Public Services and Economic Stability

Author Bahiyah Shabazz

In a troubling sign for the American labor market, layoffs within the federal government have surged to their highest level in over four years. A mix of budget cuts, administrative restructuring, and policy shifts are driving a significant reduction in public sector jobs raising concerns about the long-term effects on essential government services and the broader economy.

In February, U.S. job openings declined by 194,000 to 7.568 million, down from January's 7.762 million. This decrease is largely attributed to rising economic uncertainties, including the implementation of new tariffs on imports.

The federal government has been significantly impacted, with layoffs surging to levels not seen since the early 2000s. In February, U.S. employers announced 172,017 job cuts, a 245% increase from January, with the majority occurring in the federal sector. Seventeen agencies reported a combined total of 62,242 layoffs, largely due to policy shifts under President Donald Trump and initiatives led by Elon Musk's Department of Government Efficiency (DOGE).

The Department of Health and Human Services (HHS) has initiated a major restructuring, resulting in over 10,000 job cuts. This includes 3,500 positions at the FDA, 2,400 at the CDC, and 1,200 at the NIH. The reorganization aims to consolidate agencies and reduce inefficiencies but has raised concerns about the potential impact on public health services.

These federal layoffs coincide with a broader decline in job openings across various sectors. Economists warn that ongoing trade policies and budget cuts may further dampen hiring, potentially leading to a recession. The reduction in federal positions also affects private sector jobs reliant on government contracts, compounding the challenges faced by job seekers. ​

Agencies Hit the Hardest

The most substantial job losses have occurred in key public health and regulatory agencies:

• Department of Health and Human Services (HHS): More than 10,000 positions have been cut across several sub-agencies.
• FDA (Food and Drug Administration): Over 3,500 layoffs threaten to slow drug and food safety inspections and approvals.
• CDC (Centers for Disease Control and Prevention): Approximately 2,400 layoffs could reduce the nation’s capacity to track and respond to disease outbreaks.
• NIH (National Institutes of Health): Around 1,200 researchers and administrators are affected, jeopardizing medical research and grant funding.
• Environmental Protection Agency (EPA): An estimated 3,000 layoffs are expected to limit environmental enforcement and climate research.
• Department of Education: Over 2,000 positions have been eliminated, which could delay student aid processing and disrupt federal support for schools.
• Department of Labor: Layoffs of around 1,500 employees will likely impact workplace safety inspections, wage theft investigations, and unemployment services.
• Internal Revenue Service (IRS): With about 1,200 staff reductions, taxpayers may experience slower returns, delayed audits, and longer wait times for assistance.

The current job market presents significant challenges for those seeking employment, especially for recent graduates and individuals transitioning from federal roles to the private sector. The reduction in entry-level positions and increased competition have made securing employment increasingly difficult. ​

As the labor market continues to contract, individuals and policymakers must navigate these challenges and seek strategies to mitigate the impact of these workforce reductions.

With the federal government shedding jobs on this scale, there is growing concern that the quality and reach of public services will decline. As the U.S. economy contends with inflation, trade tensions, and slower job growth, the pressure on government agencies is unlikely to ease anytime soon.

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