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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

September 30th, 2026: Confirmations of 60-year workforce low

Overview

Updated Oct 1

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. In late September 2026, a federal court approved a settlement that voided 4,200 reductions in force tied to the 2025 shutdown, restoring positions and back pay. Agencies have also backfilled about 20,500 deferred-resignation jobs, hiring replacements an average of 1.4 pay grades below the workers who left.

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.
139,928
Employees took deferred resignation
OPM's official count of DRP participants; most left by September 30, 2025.
348,219
People left federal jobs in 2025
Up 80.8% from 2024; hiring fell 55.6% in the same period.
20,557
Deferred-resignation jobs backfilled
About 14.7% of DRP positions refilled by June 2026, at an average of 1.4 pay grades lower.

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People Involved

Donald Trump
Donald Trump
President of the United States
Directed the 2025-2026 federal workforce reduction

Organizations Involved

Office of Personnel Management
Office of Personnel Management
Federal Agency
Publishes federal workforce statistics and administers human resources policy

The federal government's human resources agency, which tracks civilian employment across all departments.
Department of Education
Department of Education
Federal Agency
Lost over 45% of its staff, the deepest cut among major agencies

The federal department responsible for education policy and student aid programs, and the hardest-hit agency in the workforce reduction.
Government Accountability Office
Government Accountability Office
Congressional watchdog
Published detailed report on workforce changes across 22 major agencies

The investigative arm of Congress, which documents federal operations and spending.

Timeline

January 2025 September 2026

8 events Latest: September 30th, 2026 · 1 month ago
Tap a bar to jump to that date

  1. Confirmations of 60-year workforce low

    Latest 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. Court approves settlement voiding 4,200 RIFs

    Legal

    Judge Susan Illston approved a settlement between federal worker unions and OPM that voids 4,200 reductions in force tied to the 2025 shutdown. RIFed workers get back pay and restored positions; future RIFs require 30 days' public notice.

  3. Agencies backfill 20,557 deferred-resignation jobs

    Data release

    A Partnership for Public Service analysis found 20,557 deferred-resignation positions backfilled by June 2026, about 14.7% of the 139,928 who took the offer. Replacements were hired an average of 1.4 pay grades below departing employees.

  4. 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.

  5. 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%.

  6. 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.

  7. Deferred resignation deadline passes

    Policy

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

  8. 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.

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.

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.

Sources

(10)
+4
New York Post Reuters Pew Research Center Government Accountability Office Dr. Randal S. Olson Center on Budget and Policy Priorities Partnership for Public Service People's World FedTools FedTools