New federal employment data indicate that the size of the civilian federal workforce has declined sharply since President Donald Trump returned to office, reflecting one of the most significant government downsizing efforts in modern U.S. history. According to figures from the U.S. Bureau of Labor Statistics compiled through Federal Reserve Economic Data, hundreds of thousands of positions have been eliminated through layoffs, resignations, retirements, and deferred departure programs.
As of February 2026, the federal civilian workforce stood at approximately 2,683,000 employees, excluding active-duty military personnel. That marks a drop of roughly 355,000 workers—or about 11.8%—from its October 2024 peak. Preliminary estimates for March suggest the total may have fallen even further, to around 2,665,000 employees.
If those figures hold, the number of civilian federal workers would be at its lowest level since the mid-1960s. Historically, the federal workforce has remained relatively stable for decades, hovering between 2.7 million and 2.8 million employees despite population growth and expanding government responsibilities.
The decline accelerated early in Trump’s second term. In January alone, federal payrolls reportedly shrank by 34,000 workers as deferred resignation offers accepted in 2025 officially took effect. Republican Senator Mike Lee of Utah praised the reductions publicly, saying he supported the effort to shrink government.
Administration officials say the cuts are part of a broader restructuring campaign intended to reduce bureaucracy, eliminate redundancy, and lower long-term costs. A major role in the process has been attributed to the Department of Government Efficiency, which was reportedly led in the early months of Trump’s second term by Elon Musk.
Several large agencies have been hit particularly hard. Nearly half of the Department of Education workforce was reportedly targeted for reduction as part of a broader push by the administration and Education Secretary Linda McMahon to dismantle or dramatically scale back the agency.
The Internal Revenue Service has also experienced major staffing losses, with more than 26,000 positions reportedly eliminated. Current plans would reduce IRS staffing to fewer than 60,000 employees, down from more than 100,000 during the previous administration.
Beyond personnel reductions, the administration says it has focused on terminating government contracts considered wasteful or unnecessary. Officials reported that nearly 100 contracts worth more than $5 billion were reduced or canceled, including consulting agreements tied to strategic planning and management support at agencies such as the Pentagon and Commerce Department.
Supporters argue the cuts represent long-overdue efficiency reforms that will reduce taxpayer burdens and streamline government operations. Critics, however, warn that rapid downsizing could weaken essential public services, reduce oversight capacity, and create delays in agencies that millions of Americans rely on.
Updated labor data in the coming months are expected to show whether the reductions continue or begin to stabilize.
