The federal workforce continued to contract in August, with the number of federal employees falling to 2.674 million as the Trump administration continues efforts to reduce the size of the federal government.

Federal employment declined by another 5,000 jobs in August, according to data released Friday, Sept. 4, by the U.S. Bureau of Labor Statistics.

The latest figures put federal employment 11.2% below the 3.010 million workers recorded in January 2025, representing a reduction of roughly 336,000 positions since President Donald Trump took office.

NOT WIDELY REPORTED: The collapsing Federal government workforce, which fell in August to 2.67 million employees, the lowest level in more than 60 years, going back to May 1966. pic.twitter.com/tefuR4EGnS

— Mark J. Perry (@Mark_J_Perry) September 6, 2026

The August decline came as the broader U.S. labor market added jobs. Total nonfarm payroll employment increased by 162,000 during the month, while the unemployment rate remained unchanged at 4.1%.

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Private-sector employment accounted for much of the overall job growth. Private payrolls increased by 127,000 in August, according to the figures provided, exceeding the 53,000 increase economists had expected.

The federal workforce has also contracted substantially over the past year. Federal payrolls have fallen by approximately 242,000 workers over the 12 months.

When the U.S. Postal Service is excluded, the decline is larger, at approximately 251,000 positions. Postal Service employment increased by roughly 9,000 workers over that period, partially offsetting the broader decline.

The pace of the federal workforce reduction has slowed considerably in 2026. Federal employment is down by about 11,000 positions since January, suggesting that the largest reductions occurred during the first year of Trump's second term.

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The change marks a reversal from the growth in federal employment seen during the Biden administration.

Based on the pace of federal hiring during that period, federal employment would be roughly 3.06 million today if the previous growth trend had continued. That would be nearly 386,000 more federal workers than the current total.

Treasury Secretary Scott Bessent has described the shift away from government employment and spending as the “reprivatization” of the economy.

“Wall Street has done great; it is time for Main Street to do well and small businesses need to drive what I call the reprivatization away from government spending,” Bessent said during his confirmation hearing last year.

The federal workforce reduction stands apart from trends in state and local government employment. Overall government employment actually increased by 35,000 jobs in August, as state and local hiring more than offset the federal decline.

Local government payrolls increased by 50,000 during the month, including nearly 42,000 jobs in local public education. State government employment declined by 10,000.

The BLS figures show that the federal government now employs fewer workers than it has at any point since 2015, while state and local governments continue to maintain larger payrolls.

The August report also showed continued employment growth in several areas of the private economy. BLS reported that employment increased in food services and drinking places, as well as local government education, while the information industry lost jobs.

Employment showed little change in several other major industries, including retail trade, transportation and warehousing, financial activities, professional and business services, and social assistance.

Average hourly earnings for private-sector workers rose by 10 cents, or 0.3%, in August to $37.75. Over the year, average hourly earnings increased by 3.1%, according to BLS.

The latest numbers provide another look at a changing federal workforce following the Trump administration's push to reduce government employment and spending.

While the pace of federal reductions has eased considerably in 2026, the overall federal workforce remains substantially smaller than it was when Trump returned to office in January 2025.

The BLS is scheduled to release its September employment report on Oct. 2, 2026.

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