Federal workforce cuts: Most Americans favor efficiency but fear economic fallout

LOS ANGELES - Following the Feb. 11 executive order to reduce the federal workforce, the nation remains divided on the impact of mass layoffs. While more than half of Americans support job cuts if they lead to a more efficient government, concerns over economic stability continue to grow.

A recent survey by LendingTree highlights how these layoffs are affecting workers, families, and the broader economy. With stark political differences and some states bearing a disproportionate burden, the debate over federal workforce reductions is far from settled.

How are Americans reacting to mass federal layoffs?

What they're saying:

A majority of Americans—56%—agree with layoffs if they enhance government efficiency, but views are split along political lines. The survey found that 79% of Republicans support the cuts compared to just 36% of Democrats.

Meanwhile, concerns over the economy are widespread. Seventy-one percent of Americans say they worry about the impact of federal job losses, including 89% of Democrats and 59% of Republicans. LendingTree researchers also found that 20% of respondents personally know a federal worker who they fear will be laid off.

Which states are most impacted by federal job cuts?

By the numbers:

Certain states are more vulnerable to federal job losses due to their high concentration of government employees. The District of Columbia tops the list, with 20.85% of its workforce employed by the federal government, followed by Maryland at 5.21%.

Other states with significant federal employment include:

• Virginia – 3.45%
• Hawaii – 3.85%
• Alaska – 3.41%
• New Mexico – 2.54%

Despite layoffs, the overall percentage of federal civilian employees nationwide remains at 1.46% of the U.S. workforce, the same as in 2015.

How do federal job losses affect salaries and the economy?

The backstory:

Beyond job cuts, salary data reveals the financial impact on states with a strong federal presence. Federal workers in Washington, D.C., earn the highest salaries, averaging $144,529, followed by Maryland at $135,943 and New Jersey at $122,416.

For those employed in the federal workforce, layoffs could have significant economic ripple effects, especially in states with high concentrations of government jobs. Additionally, 29% of Americans surveyed expect to reduce their spending due to concerns over mass firings.

What’s next for the federal workforce?

Big picture view:

The Trump administration’s mass federal layoffs are now facing legal pushback. A federal judge in San Francisco ordered the rehiring of thousands of probationary employees across multiple agencies, ruling that the Office of Personnel Management (OPM) and its acting director lacked the authority to issue the terminations. 

The ruling affects employees in departments including Veterans Affairs, Agriculture, Defense, Energy, Interior, and Treasury.

White House Press Secretary Karoline Leavitt criticized the ruling as an overreach into executive authority, stating that the administration would fight the decision. The case is among several legal challenges, with courts in Maryland and Washington, D.C., also weighing in on the legitimacy of the firings. 

With an estimated 200,000 probationary federal employees across agencies, the outcome of these lawsuits could significantly impact the future of federal workforce reductions.