Federal workers across the country are flooding the job market as agencies targeted by the Department of Government Efficiency (DOGE) face deep cuts under the Trump Administration’s cost-cutting agenda. Job applications from employees at agencies like the USDA, USAID and CFPB have surged, according to new data from Indeed.
Applications from these workers jumped more than 50% in February alone and are now 75% higher than they were in 2022. The reason? Layoffs, uncertainty and a shrinking federal workforce. The February jobs report showed the federal government lost 10,000 jobs, with more reductions expected in the coming months.
According to Cory Stahle, an economist at Indeed, the labor market has cooled, especially for knowledge workers. “That’s creating a friction in the labor market.” He also told NBC News, “It’s not a good time to be looking for a job.”
Highly Educated, But Few Options
Roughly 70% of federal workers actively job hunting on Indeed in February had at least a bachelor’s degree. At some agencies, like USAID, two-thirds of employees have advanced degrees. But despite these qualifications, many of them are struggling to find work that matches their skills.
Job postings requiring higher education have declined significantly compared to roles that don’t ask for advanced degrees.
As of February, job postings for these sectors were just 2% above pre-pandemic levels, while postings for lower-education roles were up 17%.
Remote and Specialized Jobs Top the List
Federal workers aren’t just looking anywhere—they’re searching for flexible roles, often remote or part-time. Popular search terms included “remote work from home,” “part time,” and “hiring immediately.”
Searches for “horticulture” exploded—27 times higher in February 2025 than the year before. This likely reflects layoffs at the USDA.
“Employee relations” also saw a big jump, pointing to cuts in diversity, equity and inclusion roles that have been scaled back.
Agencies Under the Microscope
The biggest surge in job applications is coming from workers at agencies under DOGE scrutiny, including the Department of Energy, EPA, NIH, and FAA. While federal worker job applications overall are still about 12% below 2022 levels, activity from these agencies has far outpaced that average.
Indeed notes this kind of spike didn’t happen after past transitions, like in 2016 or 2020. The changes this year appear more drastic and faster-moving.
What Comes Next
The situation isn’t just affecting government employees. Federal contractors—who often have similar qualifications and responsibilities—may soon join the job hunt. Some estimates suggest there are twice as many federal contractors as government employees.
“A dynamic, growing economy — especially one facing a looming shortage of skilled workers in various fields ranging from healthcare to engineering — will likely be able to absorb those workers in due time with limited disruption,” Stahle wrote. “But right now, employer demand in these sectors is low.”
With the March jobs report just around the corner, all eyes are on whether the market can keep up with the influx of educated, specialized workers now seeking their next move.