Atlanta Fed study: US federal government broad workforce could shrink by more than one million

On April 22nd, according to an analysis by the Atlanta Federal Reserve Bank, the U.S. federal government's broad labor force (including contract workers and funded program employees) may decrease by more than 1.20 million people. The forecast mainly reflects the shrinkage of the size of the government's indirect employment through contracts and funded programs. "Given the size of the federal workforce, this decline in employment levels could have a significant impact on the labor market," Atlanta Fed researcher M. Melinda Pitts said in a blog post on Monday. To cut government spending and fiscal waste, President Trump has launched a nationwide staff reduction plan for federal agencies. Through a combination of hiring freezes, voluntary buy-out offers and early retirement, the federal broad workforce, which includes contract and project workers, could shrink by up to 1.20 million people, Pitts found.