Federal Workforce Shrinks by 300,000 Since January 2025

NewsData.io · United States · Oct 3, 2026

The federal government has reduced its civilian workforce by approximately 300,000 positions since January 20, 2025, bringing total federal employment to roughly 2.7 million — an 11% reduction. Agencies including USAID, the CFPB, HUD, and the Agriculture Department saw the steepest cuts, while the Defense and State Departments also experienced significant departures. Over 4 million federal contract workers remain in place. Staffing firms with public-sector or government contractor clients should monitor whether displaced federal employees and contract workers create candidate supply opportunities, and watch for downstream demand shifts as agencies restructure.

government staffingpublic sectorfederal workforcecontract workers

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