Both Musk and Ramaswamy have proposed drastic measures: Musk aims to reduce federal spending by 30%, while Ramaswamy has suggested firing half of the federal workforce.
As these bold proposals are being discussed, itâ€s important to take a closer look at the U.S. federal civilian workforce—the largest employer in the country.
Who are these federal worker, what is the cost of their salaries, and the scope of their work?
How many federal workers are there?
The U.S. government currently employs 2.3 million civilian workers, according to data from the White House personnel office.
Since 2019, the size of the federal workforce has grown by 7%, primarily due to new hires for overseeing major infrastructure projects funded by the 2022 infrastructure package.While the workforce has expanded in recent years, the total number of federal employees remains steady at about 0.6% of the U.S. population. This is a smaller share compared to past decades, when federal employees accounted for over 2% of the U.S. population in the 1940s and 1% in the 1960s.
What demographics define federal workers?
Federal employees tend to be older and more highly educated than the general U.S. workforce. According to the Partnership for Public Service:
- 42.5% of federal workers are aged 50 or older, compared to 33.2% of the broader U.S. workforce.
- Over 54% of federal employees hold a bachelorâ€s degree or higher, whereas only 40% of U.S. workers overall have similar academic qualifications.
- Around 30% of federal workers have military experience, a notable contrast to just 5% of the general U.S. workforce.
How much does the federal workforce cost taxpayers?
In the 2022 fiscal year, the federal government spent approximately $271 billion on salaries and benefits for civilian workers, which accounted for 4.3% of the total U.S. government spending.
The Congressional Budget Office (CBO) has estimated that if the government were to match private-sector salary levels, the cost of wages for federal workers could rise to around 10% of total federal spending.
Interestingly, federal workers in lower-skilled roles (those without college degrees) are often paid more than their counterparts in the private sector, while those with advanced degrees tend to earn less.
Where do federal workers work and what do they do?
Although Washington, D.C., is often associated with the federal government, 80% of federal employees work outside the D.C. area.
The majority of these workers are employed in national security-related agencies, making up about 70% of the civilian workforce.
Some of the largest federal employers include:
- Department of Veterans Affairs (487,000 employees),
- Department of Homeland Security,
- Department of Justice,
- U.S. Armed Services.
As the conversation around budget cuts continues, the future of the federal workforce will likely be a central point of debate.
The proposed reductions by Musk and Ramaswamy would have wide-reaching implications for the structure and function of these key federal agencies, making the federal workforce a focal point in efforts to reduce government spending.
(With inputs from Reuters)
