Indeed: Job applications from feds level out after initial surge, but risks persist

Federal employees who have recently separated from government service, or who are looking to, started fewer applications on the job search website Indeed in May following a steady spike that began in January, the company reported. However, the still looming prospect of agency reductions in force could increase the number of civil servants looking for new roles. 

The number of applications on Indeed, which has hundreds of millions of users, from employees at agencies under scrutiny from the Department of Government Efficiency grew 150% between President Donald Trump’s second inauguration and April before falling 4% in May, according to a June 26 report from economist Cory Stahle of Indeed Hiring Lab, the company’s research arm. 

DOGE has spearheaded several workforce reductions across government, including planned layoffs at the Consumer Financial Protection Bureau that impact most of the regulator’s employees and the effective elimination of the U.S. Agency for International Development. 

The report found that the number of applications from federal employees in general increased 56% between January and May. 

Stahle attributed the leveling off in May to several possibilities, including natural fluctuations, job seekers finding new roles and Elon Musk’s departure from DOGE. Still, he warned about anticipated cuts to the federal workforce, including the “deferred resignation program” through which eligible employees can stay on paid leave through Sept. 30. 

“Tens of thousands of government employees have reportedly taken a deferred resignation, and it is unclear whether the labor market can absorb this influx of specialized, highly educated workers, particularly when demand for those workers is relatively muted,” according to the report. 

Additionally, a judge has blocked the Trump administration from carrying out RIFs at many agencies, but that order could be reversed. 

Stahle also reported that job postings for the 25 employers that receive the most money from government contracts have decreased by 15% since Jan. 20. In comparison, listings for other roles have fallen by 0.6% in the same timeframe. 

The Trump administration has sought to reduce spending on consulting contracts, including at the Defense Department, where officials must now obtain approval from DOGE before making new unclassified awards for IT consulting, management services and advisory and assistance support contracts. 

“The decline in top contractor job postings also negatively impacts federal workers actively seeking new roles,” Stahle wrote. “These workers often possess valuable knowledge of government operations and the work performed by these companies, making them potentially strong candidates.”

To determine which companies got the most federal dollars, Indeed Hiring Lab used the fiscal 2023 top 100 contractors report. Businesses in the top 25 include defense contractors like Lockheed Martin and Northrop Grumman as well as consulting firms Booz Allen Hamilton and Deloitte.