(Image source from: Twitter.com/WhiteHouse)
In an effort to cut down on federal expenditures, USA President Donald Trump has proposed buyout packages to over 2 million federal employees. This action impacts approximately two-thirds of the federal workforce and is anticipated to result in the largest single job loss in the history of the United States. A note from the Office of Personnel Management, which manages human resources for the government, states that employees who voluntarily resign will receive around eight months' worth of pay up until September, provided they opt for this by February 6. This offer is extended to all federal staff, with the exception of specific military, postal, or national security employees. With more than 3 million workers, the federal government represents the 15th largest workforce in the country. Forbes reports that the most significant single job cut ever executed by a US company could lead to a staggering loss of over 200,000 jobs if just 10 percent of the workforce accepts the offer.
On his first day of his second term, Trump enacted numerous executive directives targeting federal employees, including orders that eliminated remote work options and mandated full-time in-office attendance. The 78-year-old also dismissed 17 inspectors general from major federal agencies. Notably, Michael Horowitz, a Democratic appointee selected for the Justice Department by Obama, was not terminated. A week after the new administration began, at least 56 high-ranking officials from USAID, the country’s largest aid and development organization, were placed on leave amid an investigation into claims of attempting to obstruct Trump’s policies. The US unemployment rate has remained fairly low in recent years, recorded at 3.6 percent as of December 2024, reflecting a robust job market. Nonetheless, a potential influx of federal workers taking buyout offers could raise unemployment figures significantly, potentially adding hundreds of thousands to the count. This shift may temporarily disturb the job market and raise concerns about the stability that has been observed in recent years.
