Slashing Federal Workforce is Not Efficient

CEPR is taking a close look at their impact at the Federal Government. The firing of thousands of people has not yet displayed an impact on the population served by them. It is bound to come eventually.

By the Trump administration’s haphazard design, the federal government is in chaos.

This state of chaos has been intentionally crafted by Elon Musk, Donald Trump, and his administration’s efforts to dismantle government programs by slashing the federal workforce.

Diversity, Equity, and Inclusion (“DEI”) has been a central target of the purge, with the administration terminating related offices and programs while revoking anti-discriminatory executive orders. It should be no surprise then that the administration’s mass firings will disproportionately hurt minority populations within the federal government. This is a feature of the cuts, not a bug; what is being sold as a meritocratic endeavor is in reality an effort to demolish a bridge to economic opportunity for thousands of minorities, and to end programs upon which millions rely upon.

Figure 1 displays the makeup of the Federal government workforce by race/ethnicity in September of 2024, calculated using employment numbers from FedScope. Note that FedScope does not report all federal employees; it does not include the over 600,000 people who work for the US Postal Service. Unless stated otherwise, all numbers in this paper reference the group of federal workers reported by FedScope.

The Non-Hispanic White and Asian populations closely match their labor force share. Hispanic workers, though underrepresented relative to their share of the population, have seen the highest growth in representation within the federal government; FedScope data shows them going from 7.82 percent of the workforce in 2010 to 10.94 percent in 2024. Slashing the size of the federal workforce is thus bound to disproportionately hurt Black workers, while freezing the acquisition of new workers is bound to stem the growth in opportunity that Hispanic workers were achieving through the federal workforce.

DOGE’s savings page fixed old mistakes — and added new ones: NPR