Employment and hiring trends always provide a very insightful peek into society at the time, and Indeed’s surge of federal workers looking for work tells us a lot about the US job market right now. Popular job search portal Indeed gave us an in-depth look into federal employee job hunt trends and pointed us towards a 50% surge in February from workers at federal agencies under DOGE review.
Indeed’s numbers on federal workers and their job search efforts by the end of February put them at 75% above their 2022 levels. The flood of workers on the job market was inevitable considering the number of cuts that have been made with abandon by DOGE, but the repercussions are yet to be fully understood. The elimination of the agencies and their staff is one thing, but the human side of the story and what comes next for these workers with niche qualifications remains to be seen.
What does Indeed’s surge of federal workers have to tell us about the job market right now? (Image: Freepik)
The Department of Government Efficiency (DOGE) has been the central pillar of the new government despite its recent creation, and it has played a key role in putting thousands of workers out of jobs, with more cuts to come. The DOGE-related job cuts are intended to revitalize the government and reclaim resources that are being wasted on inefficient systems, but this has had a pointed effect on the job market and the number of federal workers populating it.
The job search behavior of federal workers is believed to mirror the general labor market trends. While application numbers peaked in mid-2022 and stabilized around 2024, the post-January spike has been unusual and unprecedented.
Indeed’s spike has been tied to federal layoffs in agencies currently under review by DOGE, such as the US Agency for International Development (USAID), the Consumer Financial Protection Bureau (CFPB), the US Department of Agriculture (USDA), and the Federal Aviation Administration (FAA). With the data we have available from the Indeed Hiring Lab report, let’s explore some job hunt trends in relation to these federal employees right now.
We’ve seen signs repeatedly that governmental agencies and private organizations are rolling back the ramp to remote work, but workers have not let go of the preference. The latest federal employees’ job hunt trends show that search terms like “remote,” “remote work from home,” and “work from home” account for a combined 3.2% of queries.
Undoubtedly, flexible, work-from-home opportunities are still the key attraction for job seekers, regardless of how specialized their work or skills are. The preference for these terms was popular among federal workers in February last year as well, so it does not suggest a new work trend but a continuation in the existing preferences of workers.
Workers were also found to look for “part-time” work and jobs that were “hiring immediately,” hinting at their desire to find work as soon as possible. A now-fired federal worker who has similarly been on the hunt for work told us, “It’s a worrying time to be unemployed. Any job that can restart a steady stream of income would be welcome right now because, in a few months, it’ll be even harder to find work after more roles are cut. Where will we go?”
Last year, Indeed witnessed an uptick in federal workers looking for more niche job roles, but some of these were more in demand in February 2025. Searches for specialized roles like “Horticulture” were 27 times higher this year than they were during the same period last year. Indeed surmises that this is likely due to the number of USDA workers seeking specialized roles.
Other roles like “policy analyst,” “compliance,” and “contract specialist” were also higher. “Employee relations” was also on the rise and could have something to do with the DEI-centered cuts that have taken place within government agencies. We do not have enough data to indicate the rate at which these federal workers have been able to find work, but it also looks like it’s going to be tough for them to jump ship to a new role with the cooling job market set up the way it is right now.
Do we need specialized job boards to connect these qualified workers with niche expertise to the right employers? Maybe, but it doesn’t appear that there is a market for such talent right now—the job board might not necessarily help these workers unless the jobs are created.
Indeed’s spike following the federal workers’ layoffs has also given us insights into the qualifications of these workers. According to the hiring portal, 68% of federal workers actively searching for work have at least a bachelor’s degree. More degree holders are looking for work compared to last year. These workers often have many in-demand technical skills as well, such as knowledge of programming languages and data analysis tools.
“This increase likely reflects both the types of roles that are being displaced—namely, roles that may require more formal education—and the heightened fear of displacement amongst highly educated federal employees in particular.”
Now, this could be an opportunity for the private sector to look for educated and qualified employees in adjacent roles to join their teams, especially considering they are unwilling to hire young and fresh Gen Z workers. However, the demand for knowledge workers has been low recently, particularly because these workers often expect better compensation and a senior position, which might not be available to them.
There is a balance that must be struck, but it does not appear that the job market is in a position to find it right now.
Indeed’s surge of federal workers looking for employment has reiterated what the job market looks like right now, and the assessment isn’t a pleasant one. More and more educated workers are entering the market looking for work, and they may either be too overqualified to find work or take up the jobs meant for other workers simply due to their wealth of experience. Either way, job seekers can expect to meet some challenges in finding employment.
The trend of layoffs isn’t exclusive to the government, as there are fears of cuts extending from the automotive industry all the way to the tech industry. With everyone looking at job cuts and only a few looking at ramping up hiring, we expect 2025 will be a tough year for job seekers.
The government has reassured workers that the period of discomfort during the transition to a new system will be a brief one and that the long-term gains will be well worth it in the end, but the ground reality for workers is quite different.
With the DOGE-related job cuts leading to the efflux of educated, skilled workers, state governments and nonprofits could benefit from their expertise if they seek it out right now. While we wait for the long-term gains of the DOGE layoffs and the job impact to even out, there is room for the government and other agencies to create alternate roles for these workers to put their skills to good use. Where there’s a will, there’s a way to make it happen.
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