The number of job applications from federal workers has increased dramatically, with those in agencies under review by the Department of Government of Efficiency rising by 50% in February, according to a March 25 report from Indeed’s Hiring Lab.
While February jobs numbers showed a decline of 10,000 federal government jobs, larger numbers are expected in the upcoming March report, Indeed indicated.
“The surge in applications from this generally well-educated and highly specialized segment of the workforce comes as growth in job openings remains muted overall, particularly for the kinds of knowledge worker roles likely to be sought by displaced federal workers,” wrote Cory Stahle, an economist with the Indeed Hiring Lab.
The recent surge in job search activity is “unprecedented,” Stahle wrote, noting that increases of this magnitude didn’t occur after the 2016 or 2020 presidential elections. In particular, the sharp rise in February included workers from agencies such as the U.S. Agency for International Development, Consumer Financial Protection Bureau, U.S. Department of Agriculture and Federal Aviation Administration.
Searches for horticulture and employee relations roles were more than 10 times above where they were last year, which likely indicates workers from the USDA and those in diversity, equity and inclusion roles, Stahle wrote.
This influx of displaced federal workers could affect the already cooling labor market, particularly since employer demand for knowledge workers has fallen much quicker, Stahle wrote. Indeed profile data shows that nearly 70% of federal workers who were active on Indeed in February had at least a bachelor’s degree.
“Employers with longstanding and/or difficult-to-fill vacancies, not to mention understaffed state and/or local government agencies that may perform similar functions as their federal counterparts, may yet welcome this influx of candidates,” Stahle wrote. “Ultimately, the overall job market’s ability to absorb cuts will depend largely on the types of jobs workers are looking for and a rebound in employer hiring confidence.”
Driven in part by federal worker sentiment, employee confidence dropped to a new low in February, according to a Glassdoor report. Workers overall cited concerns about economic uncertainty, job insecurity, stress and burnout from being asked to do more with less, Glassdoor’s lead economist said.
Notably, a majority of HR leaders believe the balance of power is returning to employers in the employer-employee relationship, according to an isolved report. As part of this shift, though, organizations may focus on cost-savings and reduce their investments in employee experience and engagement — and potentially hiring.
