Federal Workforce Shrinks 12 Percent in 18 Months
A government-wide hiring freeze and job cuts reduced the federal headcount to levels not seen since the Obama administration.
Updated on Oct. 29, 2026 in Employment
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Between December 2024 and June 2026, the federal workforce declined by 12 percent, with 426,000 employees leaving service during the administration’s first 18 months. This shift resulted from a widespread hiring freeze and a strategic job elimination campaign.
Why it matters
The contraction of the federal workforce, which returned to levels not seen since the first term of Barack Obama, impacts the delivery of public services and reflects a fundamental shift in national personnel policy. Households with members in the civil service face a changed employment landscape as programs were targeted for elimination.
The federal government saw 426,000 employees depart in 18 months, representing a 12 percent total workforce reduction. Among these departures, 32,000 staff members were fired outright, while 85 percent of the exits were attributed to resignations or retirements.
The players
Donald Trump
The current President of the United States whose administration implemented the federal hiring freeze and job elimination program.
American Accountability Foundation
An advocacy group that maintained a watchlist of federal employees associated with diversity, equity, and inclusion initiatives.
Barack Obama
The 44th President of the United States whose initial term serves as the benchmark for the current size of the federal workforce.
The details
The workforce reduction was driven by a combination of government-wide hiring freezes and a structured job elimination drive targeting specific agencies. Beyond these administrative measures, an advocacy group-led watchlist of employees associated with diversity, equity, and inclusion programs further influenced employment levels. The administration's efforts also focused on closing 225 designated offices, significantly altering the scale and structure of the federal sector.
Timeline
• December 2024 marked the start of the workforce reduction period.
• September 2025 saw a monthly peak of 121,000 employee departures.
• June 2026 concluded the 18-month measurement period for staff shrinkage.
• October 2026 provided a status check on individuals named to a DEI watchlist.
Money Landscape
This decline marks a significant departure from long-term federal staffing trends by reversing years of growth. The current workforce size returns the federal payroll to levels last seen during the first term of Barack Obama.
Households dependent on federal employment income may experience ongoing instability as office closures and program cuts continue to reshape the sector. Those currently employed or seeking roles within the federal government should monitor official agency announcements for further changes to hiring or elimination policies.
The takeaway
The 12 percent reduction in the federal workforce demonstrates a sharp contraction of government employment opportunities. Households should track upcoming fiscal year agency budgets to identify potential shifts in job security or program availability.
Further reading
For more on the national labor outlook, visit our Employment section.
Source note: This article includes information reported by The Daily Beast.
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