Jobless Federal Workers Surge as Elon Musk’s D.O.G.E Slashes U.S. Government Agencies

In an unprecedented move, Elon Musk’s Department of Government Efficiency (D.O.G.E) has accelerated layoffs among U.S. federal workers following President Trump’s re-election in January 2025. According to Indeed, job applications from workers affected by D.O.G.E have surged by 75% compared to 2022. This transition is unlike previous administrations, impacting experienced professionals with an average tenure of 11 years in their jobs, heightening fears of a recession. Economist Claudia Sahm, referencing the Sahm Rule, expresses concern over the rapid layoffs potentially triggering a downturn. Claudia notes that the pace of these changes has amplified economic risks, posing challenges not just for affected workers but for the economy at large. The Department of Government Efficiency’s tactics have resulted in increased uncertainty among government employees and external entities reliant on government contracts. Companies and educational institutions like Stanford University are already freezing hiring due to this uncertainty. The broad range of unemployed federal workers includes specialists from various fields, complicating their job search in a cooling labor market, especially as traditional and remote-friendly roles dwindle. It remains critical to monitor regional job markets, which are showing varying recovery paths post-pandemic. While some workers might not find immediate positions, the breadth of layoffs increases the probability of heightened unemployment. The swift and unplanned nature of these layoffs, compared to strategic, phased reductions during prior administrations, amplifies risks to both the workforce and the economy.