Job Applications From Under-Threat Federal Workers Surge, says Indeed

Recent efforts by the US government to reduce its size are reshaping the landscape for federal workers.

With the Department of Government Efficiency (DOGE) spearheading initiatives to shrink the workforce, federal employees are increasingly searching for new jobs.

Indeed research shows the actions of the department, which is headed by the world’s richest man, Elon Musk, has led to a flurry of activity among under-threat federal workers.

Surge in Job Applications from Federal Workers

In response to ongoing efforts to trim the federal workforce, job applications from federal employees have surged.

Indeed says February saw a notable 50% increase in federal worker job searches, with a particular rise among employees of agencies targeted by the DOGE’s review process, such as the USDA, USAID, CFPB, and FAA.

While many federal workers are looking for positions in the private sector, the job market has become increasingly competitive.

The trend of federal workers seeking new opportunities isn’t just a reaction to uncertainty; it’s also driven by changing workplace preferences.

Workers are increasingly seeking flexible and remote job options.

Indeed searches for remote roles have grown by 3.2%, reflecting a broader shift in the labor market toward work-life balance.

Federal workers’ expertise, often specialized, puts them in demand in certain industries, but finding a role that aligns with their specific skills remains a challenge.

Federal Workers’ Search for New Locations

The job search habits of federal workers are shifting geographically.

While Washington, DC, Maryland, and Virginia have traditionally been hubs for government employees, a growing number are now seeking jobs in states like Texas, California, Florida, and Georgia.

This migration is partly due to the recovery of job postings in the southern US regions, where remote and hybrid opportunities are more readily available.

These areas have also seen a robust post-pandemic job market recovery, making them attractive to displaced federal workers.

Despite the increase in job searches in these regions, it’s important to note that knowledge work sectors—such as tech—have cooled, making it harder for federal employees to find positions that match their qualifications and expectations.

According to Indeed data, many federal workers hold advanced degrees, with nearly 70% possessing at least a four-year degree.

This educational background makes them highly specialized, but the scarcity of relevant job opportunities is a growing concern.

The Cuts by DOGE: A Deeper Look

Since the start of 2025, DOGE’s efforts to reduce the federal workforce have led to significant structural changes within many government agencies.

The focus has been on eliminating redundancies and cutting costs, with an emphasis on streamlining operations and reducing administrative overhead.

These cuts are primarily impacting agencies with bloated budgets or those deemed less critical to the federal government’s core functions.

While DOGE’s long-term goal is to improve efficiency, the immediate effect has been an influx of federal workers looking for new jobs, many of whom are finding it difficult to transition into private sector roles.

Specialized roles that federal workers typically hold—such as regulatory positions, technical jobs, or roles in government oversight—are less abundant in the private sector, contributing to the frustrations many workers are experiencing.

For instance, the USDA and FAA, which are both under DOGE’s scrutiny, have seen job cuts and streamlining, forcing employees to reevaluate their career options.

The impact of these cuts on workers has rippled through multiple sectors, with many federal workers finding it difficult to find new positions that align with their skills, qualifications, and desired compensation.

What Does This Mean for Job Seekers and Employers?

For job seekers, particularly those coming from a federal background, the transition into the private sector can be daunting.

While there is a significant demand for workers with specialized knowledge, the competition in the private sector is fierce. The increase in remote and hybrid job options is offering some relief, but the lack of tailored opportunities for federal workers’ specific skill sets is a challenge.

For employers, this shift presents both an opportunity and a challenge.

While federal workers bring valuable experience and expertise, companies will need to be strategic in attracting and integrating them into their workforces.

Tailoring roles to accommodate the specific skills of these workers, while offering competitive compensation and flexible work arrangements, will be key to successfully attracting this talent.

Key Takeaways

• Increased Job Search Activity: Federal workers are increasingly looking for new roles, driven by ongoing government cuts and shifting workplace preferences.
• Geographic Shifts: Many federal workers are seeking employment in regions outside the traditional DC area, particularly in the southern US.
• Challenges in the Job Market: Despite the surge in applications, federal workers are struggling to find suitable positions due to a competitive job market and the cooling of knowledge work sectors.
• Impact of DOGE Cuts: The Department of Government Efficiency’s cost-cutting measures have led to significant workforce reductions, forcing federal employees to explore new career paths.

As the job market adapts to these changes, federal workers and employers alike must find innovative ways to navigate the evolving employment landscape.

For federal workers, this may involve a significant career shift or a need for upskilling to align with the private sector.

For employers, understanding the unique needs and skills of this group will be essential in attracting the talent that will drive future business success.

What has DOGE Cut?

DOGE has overseen sweeping cuts across several US foreign aid and development agencies.

The US African Development Foundation, which supports small businesses across Africa, lost most of its staff and had nearly all contracts cancelled.

A federal judge ruled these actions legal but the administration was ordered to maintain the minimum operations required by law.

The Inter-American Foundation, which invests in economic development across Latin America and the Caribbean, also saw mass staff removals and program suspensions. Its leadership filed a suit, arguing the cuts would cripple long-term US influence in the region.

USAID faced similar reductions, with a judge temporarily blocking Doge from implementing more cuts after ruling they likely violated constitutional limits on executive power.

Doge has also implemented staff reductions across the National Park Service, leading to concerns over maintenance backlogs, reduced visitor services, and long-term environmental oversight.

There have been major cuts to the IRS, which has led to Americans chancing their arm and not filing their tax returns in 2025.

It is estimated this could lead to a $500 billion shortfall in funding.

Analysts say these moves reflect a broader effort to centralize control, downsize foreign assistance, and redirect resources toward domestic initiatives.

Critics warn the cuts risk destabilizing partnerships, damaging American soft power, and creating job losses across the public and nonprofit sectors. Supporters argue they eliminate redundancy and waste. As legal challenges continue, Doge’s role remains a flashpoint in the debate over federal agency reform.

Expert Analysis

WhatJobs CEO Alex Paterson said: “As the landscape for federal workers shifts, both job seekers and employers face a unique set of challenges.

“With many skilled federal employees now exploring private-sector opportunities, it’s crucial for companies to recognize the value of this specialized talent. Employers who offer flexibility, competitive compensation, and tailored roles will not only attract top talent but also help these workers transition successfully.

“At WhatJobs, we’re committed to connecting skilled professionals with the right opportunities, ensuring a smoother transition in today’s evolving job market.”

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