May Jobs Report: Real-Time Updates on U.S. Hiring Trends and Insights

After losing his job at the Food and Drug Administration this past February, Matt Minich joined many others in seeking new opportunities at universities. At 38 years old, he was among the thousands laid off from public service at the start of President Trump’s second term. These layoffs signaled a shift, as the Department of Government Efficiency, led by tech entrepreneur Elon Musk, made sweeping cuts across various agencies.

Shortly after landing a new position at the University of Wisconsin, Minich faced another blow when his program lost federal funding. “I’m doubly not needed by the federal government,” he remarked. Like many others in this situation, he is discovering that the job market in academia and consulting is rapidly shrinking due to budget cuts and a crowded field of applicants.

The wave of layoffs has resulted in fewer openings across states and in the private sector. These issues are expected to worsen as more layoffs occur and workers on administrative leave find themselves needing new jobs.

In Washington, D.C., the impact of these changes is stark. Federal funding is critical for many professions. As the landscape shifts, it resembles the decline of manufacturing jobs in the Midwest in the 2000s, but this time, changes are happening at a much faster pace.

Statistics reveal that the federal workforce reached a post-World War II peak of 2.3 million in January. But a rough estimate suggests that about 135,000 employees have left their jobs since then, with more cuts planned. A Federal Reserve Bank report estimates that around 4.6 million contracted and grant-funded workers in fields from health to education are also feeling the squeeze.

Job losses began in February, hitting organizations reliant on the U.S. Agency for International Development hard. For example, contractors like Chemonics and FHI360 have faced significant layoffs. In fact, Booz Allen Hamilton, a notable consulting firm that relies heavily on federal dollars, announced cuts affecting around 7% of its workforce.

Despite some stability in the national labor market, D.C. has seen an uptick in unemployment rates since December. Many are seeking help through resource fairs, like one in Arlington, where nearly 800 individuals gathered for resume consultations and workshops on managing unemployment.

Elaine Chalmers, who recently left her job at the Agriculture Department, attended multiple resource fairs after resigning. She described her departure as a way to align with her values following new, stressful mandates. With over 100 job applications sent out, she noted how challenging it is for federal workers to find suitable roles outside government.

Laura Moreno-Davis from WorkSource Montgomery shared that transitioning from federal jobs can feel like starting over, as many roles are unique to the government. A new group called FedsForward is stepping in to help translate these specialized skills into terms understood by the private sector.

However, transitioning isn’t always straightforward. Chelsea Van Thof, a public health veterinarian, lost her job at the State Department and felt the weight of her student debt pressing down harder without the prospect of a public-sector forgiveness program.

Meanwhile, Todd Frank, laid off from his position supporting military logistics, faces difficult decisions about uprooting his family versus seeking local opportunities. States like Pennsylvania are trying to support laid-off federal workers, receiving thousands of applications for new positions, but the demand has outpaced availability, with many hiring freezes being enforced.

As federal funding faces uncertainty, state agencies and public health organizations are also making cuts. Schools and universities have paused hiring, reflecting a broader trend of caution in funding decisions.

In the face of job losses dramatically impacting specialized fields like science and consulting, Paro Sen, a research scientist recently laid off, voiced the urgency for Congress to restore federal jobs that are crucial for public health and safety. With a limited number of positions available, talented workers find themselves in fierce competition for these roles, adding to the challenges of an already tough job market.



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Labor and Jobs,United States Economy,Interest Rates,Federal Reserve System,Wages and Salaries,Economic Conditions and Trends