Mass US Government Firings Show Up in Data?
Tens of thousands of U.S. government workers have been fired in recent weeks, according to a Reuters tally of announcements tracking President Donald Trump's plan to shrink the federal workforce. Economists will be keeping an eye on the data because federal government hiring has been a steady contributor to overall U.S. employment growth as the pace of private-sector hiring has eased. The federal civilian worker share of total U.S. employment is near its historic low of 1.4% from late 2000.
- This trend may indicate a broader shift in the nature of work in the public sector, where the distinction between traditional government employment and contract-based arrangements becomes increasingly blurred.
- Will the reduced workforce under Trump's plan lead to significant cost savings for taxpayers, or will it disproportionately affect vulnerable populations such as federal retirees and current employees?