The federal government’s recent job cuts have resulted in a significant uptick in layoffs announced in March, reaching levels nearly unmatched except during the early months of the COVID-19 pandemic. This information was revealed in a report released on Thursday by job placement firm Challenger, Gray & Christmas.
In March, the federal workforce faced 216,215 furloughs, contributing to a total of 275,240 job reductions nationwide. The Department of Government Efficiency, led by Elon Musk, was linked to approximately 280,253 layoffs across 27 federal agencies over the last two months as part of its initiative to streamline the federal workforce.
This month’s layoff figures rank as the second highest recorded since Challenger began tracking in 1989, surpassed only by the April and May of 2020 when employers announced over 1 million reductions combined during the pandemic’s onset. March also marked the highest total for that month in the history of the records.
“Last month’s layoff announcements were primarily driven by plans from the Department of Government Efficiency to reduce positions within the federal workforce,” stated Andrew Challenger, senior vice president and workplace expert at the firm. “Without these announcements, March would have likely seen a much quieter layoff environment.”
However, DOGE has remained aggressive in its cuts throughout the federal landscape.
Reports indicate that the Veterans Affairs Department may experience job losses of approximately 80,000, while the IRS could reduce its workforce by around 18,000. Additionally, the Treasury is expected to make “substantial” cuts, as noted in a recent court filing.
This year’s federal announced layoffs so far illustrate a staggering 672% increase compared to the same timeframe in 2024, according to Challenger’s findings.
Despite these significant layoff plans, broader employment data has yet to reflect these changes dramatically.
Weekly unemployment claims have shown a relatively stable pattern since Donald Trump’s presidency began. While payroll growth has slowed compared to 2024, it remains positive, and job openings have dipped back to levels observed before the pandemic.
The Washington, D.C. area is particularly impacted by the recent layoffs, with a total of 278,711 job losses announced so far this year, according to the report.
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