Job applications from federal employees have surged, particularly among those working in agencies currently under review by the Department of Government Efficiency. According to a report from Indeed’s Hiring Lab, applications from this group spiked by 50% in February. The broader federal workforce also saw a decline of 10,000 jobs during the same period, and larger reductions are expected in the upcoming March report.
This increase in job-seeking activity is unlike anything seen before, even during past presidential transitions. Employees from agencies such as the U.S. Agency for International Development, the Consumer Financial Protection Bureau, the U.S. Department of Agriculture, and the Federal Aviation Administration are among those actively searching for new opportunities. Notably, searches for roles in horticulture and employee relations have skyrocketed, suggesting that workers from the USDA and diversity, equity, and inclusion (DEI) roles are among those most affected.
The influx of federal workers into the job market comes at a time when demand for knowledge-based roles is cooling. Nearly 70% of those actively searching on Indeed in February had at least a bachelor’s degree, highlighting the challenge of integrating this specialized workforce into a shrinking pool of opportunities. This shift could put additional strain on an already uncertain labor market. However, some employers may see this as an opportunity to fill long-standing vacancies, particularly in understaffed state and local government agencies that perform similar functions to federal counterparts.
Beyond job searches, federal worker sentiment has taken a hit, contributing to an overall decline in employee confidence. A Glassdoor report found that concerns about job security, economic uncertainty, and increased workplace stress are at an all-time high. Many workers feel overburdened as they are expected to do more with fewer resources, adding to job dissatisfaction and prompting more employees to seek alternative employment.
This shift also reflects a broader trend in the job market. A majority of HR leaders now believe that the balance of power is shifting back to employers, according to an isolved report. Companies may use this moment to focus on cost-saving measures, potentially reducing investments in employee experience, engagement, and even hiring. While this could mean fewer job openings, it may also push organizations to rethink workforce strategies to attract and retain talent amid ongoing economic uncertainty.
With federal employees entering the job market in large numbers, the months ahead will reveal how well the labor market can absorb these transitions. The extent to which hiring confidence rebounds will play a crucial role in shaping employment trends moving forward.
