Federal Workforce Decreases by 11.2% Since January 2017

The federal workforce has decreased by 336,000 employees since President Donald Trump took office, according to data from the Labor Department. Federal government employment fell by an additional 5,000 in August 2026, bringing the total to 2.674 million, down from 3.010 million in January 2017, marking an 11.2 percent decline. Over the past year, federal payrolls have decreased by 242,000 workers. Excluding the U.S. Postal Service, the decline was approximately 251,000, as Postal Service employment increased by around 9,000 during the same period. The rate of contraction has slowed this year, with federal employment down by just 11,000 since January, indicating that the most significant cuts occurred during the first year of Trump's second term. Treasury Secretary Scott Bessent characterized the reduction in government employment and spending as the 'reprivatization' of the economy, stating, 'Wall Street has done great, it is time for Main Street to do well and small businesses need to drive what I call the reprivatization away from government spending.' The decline in federal employment contrasts with ongoing hiring in the private sector, where payrolls rose by 127,000 in August, exceeding economists' expectations of a 53,000 increase. Total nonfarm payrolls increased by 162,000, while the unemployment rate remained at 4.1 percent. Overall government employment rose by 35,000 in August due to state and local hiring, with local government payrolls increasing by 50,000, including nearly 42,000 jobs in local public education. State government employment decreased by 10,000. The data indicates a significant shift in government employment composition, with federal employment now at its lowest level since 2015.