Employment in the United States federal government has dropped by at least 15,000 since February amid ongoing layoffs, according to the latest jobs report from the Bureau of Labor Statistics.

The most recent jobs report revealed federal government employment declined by 4,000 in March. That comes after a loss of 11,000 federal jobs in February.

So, who exactly are the federal employees being impacted by these job cuts? And what effects, if any, will the layoffs have on the labor market?

In this blog, we’ll explain what employers and job seekers should expect moving forward.

A Closer Look at the Numbers

Before we get into what kind of impacts these layoffs could have on the job market, let’s take a closer look at what the numbers tell us. 

First, it’s important to note that it’s hard to get a full picture of the ongoing federal layoffs because some are tied up in legal battles. The BLS also stated that “employees on paid leave or receiving ongoing severance pay are counted as employed” in its jobs report. 

Still, the most recent data from the BLS shows that federal government employment dropped from 3,015,000 in January 2025 to 3,004,000 in February, and then to 3,000,000 in March. 

Who Are the Employees Being Laid Off?

When looking at the potential impacts of these layoffs, it’s important to consider who these employees are.

That includes their ages and whether they’ll even be entering the workforce – and if they are, what skills and qualifications they have, what kind of work they want, and where they’re looking for jobs. 

While we don’t know the exact demographics of the laid-off employees, data from Hiring Lab does show that job applications from federal workers spiked in February.

That was according to an analysis of “active job seekers who listed the federal government as their current or (newly) former employer” on Indeed. 

Hiring Lab, Indeed’s research team, noted that the spike was even higher – up by 50% – for employees of the Federal Aviation Administration, Consumer Financial Protection Bureau, and other agencies that have been the subject of recent reviews.  

What Kind of Work Do They Want?

One indicator that could help determine what kind of work laid-off federal employees may be looking for is taking a closer look at the departments being affected by these job cuts.  

According to AP News, the layoffs have been relatively widespread, impacting everything from the Defense Department and Department of Homeland Security to the National Park Service and Education Department. 

Another indicator comes from the Hiring Lab research released at the end of March. During their analysis, they looked at job titles being searched by federal workers to identify those with the biggest year-over-year growth.

According to the findings, titles with the largest surge in search volume included horticulture, employee relations, policy analyst, communications, and accountant. 

Hiring Lab also reported that federal employees actively searching for jobs held a wide range of titles across a variety of industries and sectors.

Top job titles listed in their report include customer service and call center representatives, medical support and nursing assistants, transportation officers, program analysts, HR specialists, and IT technicians. 

This tells us that laid-off federal employees are not just seeking similar government roles, but are exploring opportunities across a broad spectrum of industries — from healthcare and tech to communications and accounting — indicating both flexibility and a desire to apply their skills in new environments. 

What Qualifications Do They Have?

Existing data about education levels within the federal workforce, paired with Hiring Labs research, indicate that the federal workers looking for jobs in the wake of these layoffs are highly educated. 

Federal workers in general are more educated than the civilian workforce, according to a January report from Pew Research.

Pew reports that about 31.5% of federal workers have a bachelor’s degree, and about 22% have a post-graduate degree.

That’s compared to the 27.7% of civilian workers with a bachelor’s degree and 17.6% with an advanced degree. 

Hiring Labs found that nearly 70% of federal employees actively searching for a job on Indeed in February 2025 had a bachelor’s degree or higher. 

Indeed’s research also found a mix of skills on the profiles of federal job seekers – from hard skills like Microsoft Office and computer operation to soft skills including communication, leadership, and organization.

In addition, their report noted an increase in programming and data analysis skills like Python, Power BI, and Tableau. 

The insights on their qualifications and skills indicate that employers embracing skills-based hiring will have a clear advantage, as they stand to attract a highly educated, experienced, and versatile talent pool capable of stepping into a wide range of roles with both technical and leadership competencies. 

Where Are They Looking for Jobs?

According to Hiring Labs, federal workers actively searching for jobs are located throughout the country.

While Maryland and Virginia have the highest numbers of job seekers, states like Texas, California, Georgia, Florida, and New York each accounted for 5% or higher of the active searches as well. 

However, Indeed’s data on job search terms also found that job seekers coming from the federal government are highly interested in flexible jobs that allow them to work from home. So even if the federal workers live in specific areas of the country, their location may not matter if they’re looking for remote jobs. 

Will Federal Layoffs Impact the Labor Market?

Now that we have a better understanding of who these federal workers are, the biggest question is – how will this all impact the labor market? 

Unemployment in general has remained relatively stable. According to the Bureau of Labor Statistics, the rate has been hovering around or just above 4% since May 2024.

But job seekers have noted how difficult it’s been to find employment, and employers say they’re continuing to deal with labor shortages. 

So, will federal workers be able to find work in the current job market, and can they help the employers who are looking to fill talent gaps? 

What Employers Should Know

Former government employees often bring strong analytical, organizational, and compliance-focused skills, as well as a deep understanding of public service and accountability. Many are highly educated — more so than the general civilian workforce — and have developed transferable skills in project management, data analysis, policy implementation, IT, and communications. 

Employers should also be ready to rethink traditional requirements and lean into skills-based hiring strategies. Many of these professionals may not have a typical private-sector resume, but they bring immense value. Companies that focus on competencies over industry-specific experience will be best positioned to secure this highly capable talent especially in sectors like tech, healthcare, logistics, and customer service. 

Additionally, businesses should anticipate that these candidates may prioritize stability, purpose-driven work, and benefits — factors that closely align with their previous public-sector experience. 

What Job Seekers Should Know

Former government workers should know they’re entering a job market that values adaptability, transferable skills, and a willingness to learn. While the private sector may operate with different expectations around speed, performance metrics, or innovation, many of the skills developed in federal roles — like critical thinking, communication, leadership, and attention to detail — are highly sought after across industries. 

It’s also important to note that skills-based hiring is on the rise. This means that employers are placing increasing value on what you can do, not just where you’ve done it. If you can clearly communicate your skill set, experience, and impact, you’ll have a strong chance of standing out. 

That said, today’s job market is fast-moving and competitive. Tailoring your resume to each role, brushing up on digital tools, and being open to new sectors or flexible work models (like remote/hybrid opportunities or contract work) can expand your options significantly. 

And finally, don’t underestimate your value. You bring structure, reliability, and a mission-driven mindset — traits that private-sector employers are eager to bring into their organizations. 

Are you looking for a new opportunity after being laid off? We have open positions available for immediate start. Get in touch with one of our recruiters today. 

What to Expect Moving Forward

At this point, it’s clear that we’ll have to continue monitoring the federal layoffs to fully understand the effects it will have on the U.S. labor force. The BLS data only reflects federal job loss from February and March, and we may see additional cuts in the coming months. 

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