Federal Government Shed 317,000 Jobs This Year: OMB

Workforce reductions and a voluntary retirement program have doubled the historical average rate of departure, the Trump administration reported.

Scott Kupor, then-Managing Partner at Andreessen Horowitz, speaks at the SelectUSA Investment Summit in National Harbor, Maryland, on June 20, 2017. Reuters/Kevin Lamarque/File Photo

The federal workforce was reduced by about 317,000 people this year as the Trump administration focuses on shrinking the government, the Office of Management and Budget (OMB) announced in a post on Nov. 21.

The administration set a target of four job reductions per new hire and exceeded that goal, according to OMB Director Scott Kupor.

The federal government hired about 68,000 people in 2025, while about 317,000 employees left—more than double the historical average, according to the Trump administration.

About 2.1 million civilians currently work full-time for the federal government, according to OMB.

President Donald Trump issued an executive order on Oct. 15 directing federal agencies to restrict hiring across the government. The order states that, in most cases, no vacant federal civilian positions can be filled and no new positions may be created, except in certain cases. Immigration enforcement, national security, and public safety positions were exempt from the initiative.

According to the Trump administration, the previous government was responsible for creating more than one in every four new jobs in America.

“In contrast, President Trump will not use the Federal government to hide a lagging economy and will support private-sector growth instead,” Trump’s order stated.

The administration has set a series of goals to refocus the federal workforce, which includes eliminating wasteful taxpayer expenses in certain areas, according to Kupor.

“For those of you who have been in the private sector, much of this will seem like motherhood and apple pie,” Kupor said.

“We are now inviting the federal government to join the planning party.”

The government also plans to examine the use of its massive pool of external contractors. Kupor said there were at least twice as many contractors employed by the government as there were full-time employees.

Kupor estimated that the U.S. spends about $750 billion each year on contractors—nearly three times what it pays for full-time employees.

President Donald Trump speaks in the Oval Office at the White House in Washington on Oct. 6, 2025. Trump signed an executive order Oct. 15 directing agencies to restrict hiring throughout the federal government, with the exceptions of immigration enforcement, national security, and public safety positions. Anna Moneymaker/Getty Images

“Unfortunately, we … have a permanent shadow class of [full-time employees] essentially cloaked as contractors,” Kupor said.

“The government should utilize the expertise of contractors in the right ways; not as a substitute for hiring well-qualified employees working on behalf of the American people.”

Hiring based on merit is also a focus of the Trump administration, Kuper said. Employees are no longer hired based on self-attestation of their skills, but are hired after formal assessments of their qualifications.

Trump has also authorized buyout programs to encourage federal employees to leave voluntarily.