Federal Workers Flee as Jobs Disappear

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Federal Job Cuts Trigger 50% Surge in Applications, Indeed Finds

Recent data reveals a significant impact on the job market following federal job cuts. Job applications from federal workers targeted by cuts surged 50% between January and February, according to analysis from the job site Indeed. This surge, a 75% increase compared to 2022 baseline levels, offers an early glimpse into the potential impact of these layoffs on the private sector.

Highly educated workers appear to be disproportionately affected. Indeed’s research shows that roughly 68% of federal employees actively searching for new jobs last month held at least a bachelor’s degree, significantly higher than the one-third average across all federal workers. This suggests that many are proactively seeking new employment in anticipation of potential layoffs.

This level of job search activity within the federal workforce is unprecedented, according to Indeed Hiring Lab economist Cory Stahle. While some turnover is expected during presidential transitions, the current spike is remarkably high. Searches for specialized federal job titles like “policy analyst” and “contract specialist” have also seen dramatic increases, further supporting this trend.

While official February employment reports show a decrease of 10,000 federal jobs, this data doesn’t capture the full picture, as it doesn’t account for job losses after mid-February. Although national unemployment claims remain steady, a surge in claims within the District of Columbia suggests a localized impact.

These early indicators offer a preview of how this influx of workers might affect the broader job market, which is currently stable but showing signs of weakening. Of particular concern is the concentration of highly educated workers among those seeking new employment, as the white-collar job market has cooled significantly since last year. This increased competition could create challenges for displaced federal workers, even those with advanced degrees, potentially forcing them to accept positions for which they are overqualified.


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