Federal Worker Separations Will Impact Talent Markets: Take Advantage
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Navigating Washington: Insights for Business

Federal Worker Separations Will Impact Talent Markets: Take Advantage

/ Quick Take

Just weeks after the inauguration of the new president, at least 15,000 federal workers and federal contractors have been laid off or put on indefinite leave, and about 60,000 have tendered their resignations, and as many as 200,000 probationary employees face imminent termination.

These actions are part of the administration’s goals of reducing the size of government, cutting expenditures, and removing potential barriers to its policy agenda. For the private and nonprofit sectors, however, these mostly white-collar, highly educated workers might represent the largest singular influx of “recruitable” talent since World War II.

Just weeks after the inauguration of the new president, at least 15,000 federal workers and federal contractors have been laid off or put on indefinite leave, and about 60,000 have tendered their resignations, and as many as 200,000 probationary employees face imminent termination.

These actions are part of the administration’s goals of reducing the size of government, cutting expenditures, and removing potential barriers to its policy agenda. For the private and nonprofit sectors, however, these mostly white-collar, highly educated workers might represent the largest singular influx of “recruitable” talent since World War II.

Key Insight

This surge, which could include tens of thousands of skilled workers, may result in a boon for some private and nonprofit sector organizations. After all, “attracting and retaining talent” remains first among executives’ concerns regarding their workforce. While consumer confidence and perception of current labor market conditions have worsened slightly since late 2024, and the January 2025 US Jobs report showed slightly lower-than-expected job growth, many employers still face acute skills and talent shortages. Chief human resources officers (CHROs) in organizations that need

Author

Allan Schweyer

Allan Schweyer Allan Schweyer

Principal Researcher, Human Capital
The Conference Board

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