A surge in federal government job cuts contributed to a near record-setting pace for announced layoffs in March, exceeded only by when the country shut down in 2020 for the Covid pandemic, according to a report Thursday from job placement firm Challenger, Gray & Christmas.
Furloughs in the federal government totaled 216,215 for the month, part of a total 275,240 reductions overall in the labor force. Some 280,253 layoffs across 27 agencies in the past two months have been linked to the Elon Musk-led so-called Department of Government Efficiency and its efforts to pare down the federal workforce.
The monthly total was surpassed only by April and May of 2020 in the early days of the pandemic when employers announced combined reductions of more than 1 million, according to Challenger records going back to 1989. It also was the highest March on record.
“Job cut announcements were dominated last month by Department of Government Efficiency [DOGE] plans to eliminate positions in the federal government,” said Andrew Challenger, senior vice president and workplace expert at the firm. “It would have otherwise been a fairly quiet month for layoffs.”
However, DOGE has continued to cut aggressively across the government.
Various reports have indicated that the Veterans Affairs Department could lose 80,000 jobs, the IRS is in line for some 18,000 reductions and The Treasury is expected to drop a “substantial” level of workers as well, according to a court filing.
The year-to-date tally for federal government announced layoffs represents a 672% increase from the same period in 2024, according to Challenger.
To be sure, the outsized layoff plans haven’t made their way into other jobs data.
Weekly unemployment claims have held in a fairly tight range since President Donald Trump took office. Payroll growth has slowed a bit from its pace in 2024 but is still positive, while job openings have receded but only to around their pre-pandemic levels.
However, the Washington, D.C., area has been hit particularly hard by the announced layoffs, which have totaled 278,711 year to date for the city, according to the report.
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