Investment institutions: Federal large-scale layoffs have limited impact on the overall labor market

2025-02-19 23:18:04

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ChainCatcher news, according to Jinshi reports, economists at Piper Jaffray believe that large-scale layoffs in U.S. federal agencies may not have a significant impact on the overall labor market.

They reviewed the precedent from 2011 to 2014, when budget sequestration led to a reduction of 146,000 federal employees. During this period, the private sector added 7 million jobs as it recovered from the Great Recession, easily absorbing the decline in federal employment.

Overall, the reduction in the federal workforce from 2011 to 2014 was not a major issue.

According to the agency's statistics, the Trump administration may have laid off about 26,000 people so far, with up to 75,000 more accepting the Department of Government Efficiency (DOGE) severance compensation plan.

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Labor market DOGE Trump administration

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