Total federal, state, county and local government employment is continuing to shrink toward 2006 levels, and the Obama administration is on pace to become the first postwar U.S. administration to average a contraction in federal government employees throughout its entire term, according to the U.S. Department of Labor’s employment report this week.
Total government employment, including local, state and federal, increased sharply in 2001 and continued to increase until 2009. Since the financial crisis and President Barack Obama's 2009 inauguration, government employment has dropped at an average 0.7 percent per month. Aside from a temporary spike in hiring for the 2010 Census, the federal government's employment has been declining.
State governments, the report said, have cut staff in order to balance their budgets with falling revenue, despite receiving billions in stimulus from the federal government.