Federal government employment falls by 10,000 in February as DOGE cuts slowly make impact on US labor market
Published On Mar 7, 2025, 10:51 AM
In February, federal government employment dropped by 10,000, marking a slowdown from the previous month's gains and indicating the initial impacts of the Department of Government Efficiency (DOGE). DOGE's efforts aim to reduce the federal workforce, contributing to the overall economic environment where job cuts have spiked, reaching their highest monthly level since July 2020. Economists remain cautious, predicting ongoing implications for the labor market as federal hiring slows. Experts note that the tectonic shifts in federal job availability, attributable to DOGE, may pose risks to the broader economy as these layoffs unfold.
Stock Forecasts
SPY
Negative
The decrease in federal employment indicates a tightening labor market and potential economic slowdown driven by government cuts. The broader implications of the DOGE initiative, particularly if job cuts reach expected levels, may affect related stocks and sectors negatively.
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