Federal News
Federal Agencies Face Workforce Attrition
March 23, 2026
In 2025, federal agencies, particularly in Washington, D.C., experienced a significant loss of over 30,000 highly educated and relatively younger employees, resulting in a net reduction of approximately 22,356 federal jobs and an annualized pay loss of $3.656 billion. This attrition has notably impacted key national security and operational agencies, including the Department of Defense (DoD), which is concurrently facing increased operational demands due to the Middle East conflict. Surveys from the Partnership for Public Service reveal historic lows in federal employee engagement and morale, compounded by workforce downsizing, leadership challenges, and the cancellation of the official Federal Employee Viewpoint Survey by the Office of Personnel Management (OPM). These developments raise concerns about institutional knowledge retention, mission sustainability, and the capacity of federal agencies to meet evolving operational and digital transformation requirements.
- Why this matters: Procurement professionals should anticipate potential impacts on contract performance and workforce availability, especially in defense and national security sectors.
- Agencies may increase demand for workforce support services, including recruitment, training, and retention solutions to mitigate knowledge loss.
- Contractors should evaluate risks related to workforce instability when planning proposals and delivery timelines.
- Organizations providing employee engagement, mental health, and organizational development services may find increased opportunities as agencies seek to address morale and productivity challenges.
Leadership has not shown leadership. The lack of morale will bite them if/when we need to go to a wartime pace. The workforce will not elevate the level of effort.
— Unnamed DoD employee
This workforce has been fundamentally traumatized in the way that this leadership team said that they intended to do at the outset. Thatβs not good for anyone.
— Max Stier, CEO of Partnership for Public Service
Agencies
Office of Personnel Management, Department of Defense, Partnership for Public Service, Office of Management and Budget, Department of State
Locations
Sources
- Highly Educated, Relatively Younger Federal Workers Depart D.C. · meritalk · Mar 19
- βStressful, chaotic, never-ending:β DoD employees face mounting strain as Middle East conflict widens | Federal News Network · Federal News Network · Mar 23
- Under Trump 2.0, federal employees disengaged, dissatisfied, survey shows | Federal News Network · Federal News Network · Mar 19
- Survey of 11,000 feds underscores βlayer cake of traumaβ - Government Executive · Government Executive · Mar 19
- Federal workforce unhappy, disengaged, new survey finds - POLITICO · Politico · Mar 19