As of September 2023, federal, state, and local governments in the United States employed a record total of 23,421,000 individuals, according to the Bureau of Labor Statistics (BLS). To put this into perspective, this number exceeds the population of Florida, the nation’s third-largest state, which had 22,610,726 residents as of July 2023, according to the US Census Bureau. Only California, with 38,965,193 residents, and Texas, with 30,503,301, have larger populations than the total number of government employees in the country. This data sheds light on the growing role of government in the US economy and raises questions about its long-term impact.
In September 2023, the 23.4 million people working for the government constituted 14.7 percent of the total nonfarm workforce, which stood at 159,105,000. This means that more than one out of every seven American workers were employed by some level of government. Historically, government employment has seen steady growth. Back in January 1939, the first month for which the BLS published data, only 3,988,000 people worked for the government, representing 13.3 percent of the total workforce. While the percentage of government workers was slightly lower than it is today, the sheer number of government employees has increased by nearly six times in 84 years.
One significant comparison is between the situation today and that of September 1979. At that time, 16,128,000 people worked for the government, accounting for 17.85 percent of the total workforce. While the proportion of government employees has decreased since then, the actual number has surged by over seven million, indicating that the government’s role as an employer has continued to expand in absolute terms.
The breakdown of government employment by level reveals interesting dynamics. Of the 23.4 million government employees in the US as of September 2023, only 2,999,000 worked for the federal government, while state governments employed 5,483,000 people, and local governments employed 14,939,000 individuals. The latter figure, which includes a significant number of workers in education, marks an all-time high for both state and local government employment.
This growth in local government employment is particularly noteworthy. Of the nearly 15 million people working for local governments, 8,139,700 were employed in the educational sector, while the remaining 6,799,500 held positions unrelated to education. The sharp increase in local government employment reflects not only the expansion of public services but also the growing demand for educational and administrative personnel.
The rise in government employment has coincided with a steady increase in government spending at all levels. According to data from the White House Office of Management and Budget (OMB), total federal, state, and local government spending in the US reached $9.0129 trillion in fiscal 2023. This marks a significant rise from the $5.7809 trillion spent in fiscal 2015. The pandemic in 2020 triggered a surge in government spending, with total expenditures skyrocketing to $8.8838 trillion in fiscal 2020 and peaking at $9.1 trillion in fiscal 2021.
These figures indicate that government expansion has not only affected employment but also fiscal policy, with ever-larger budgets required to fund the growing apparatus of federal, state, and local governance.
One of the more revealing aspects of this trend is how concentrated government employment is in certain regions of the country, particularly around Washington, DC. According to a recent Congressional Research Service (CRS) report, seven congressional districts, all located in the Virginia and Maryland suburbs of Washington, DC, have the highest percentages of federal employees in the country. Unsurprisingly, these districts are represented exclusively by Democrats in the US House of Representatives.
For example, Maryland’s District 5, represented by Democratic Rep. Steny Hoyer, the former House majority leader, has 18.18 percent of its workforce employed by the federal government. Virginia’s District 8, represented by Democratic Rep. Don Beyer, follows closely behind with 16.67 percent of its workforce working for the government. Other districts in Maryland and Virginia, represented by Democrats such as Jamie Raskin, Abigail Spanberger, and Glenn Ivey, also rank high in terms of government employment.
This concentration of federal employees in specific regions raises important questions about the potential political ramifications of government employment. As these regions see a significant portion of their workforce reliant on government paychecks, it could influence the political leanings of these areas and their representation in Congress. In districts where more than 10% of the workforce is employed by the federal government, the interests of government employees may play an outsized role in shaping electoral outcomes.
The increasing number of government employees and the concentration of federal workers in certain districts prompt larger discussions about the role of government in the US economy and society. While government workers provide essential services, from education to public safety, the growth of the public sector also raises concerns about inefficiency, bureaucracy, and the overall size of government.
As government employment reaches new heights, there is the question of whether this growth is sustainable in the long run. The rise in government spending, driven in part by the expansion of the workforce, has contributed to a growing national debt, which surpassed $33 trillion in 2023. Moreover, the significant number of people employed by the government places a burden on taxpayers, who must fund the salaries and benefits of these workers.
At the same time, government employment growth reflects broader societal trends, including the increasing demand for public services and the challenges of managing a modern, complex economy. However, as the government’s presence in the labor market continues to expand, it is crucial to maintain a balance between the needs of the public sector and the efficiency and accountability of government operations.
The growing number of government workers in the United States, now exceeding the population of most states, highlights the increasing role of government in both employment and spending. This trend, while rooted in the expansion of essential services, also raises critical questions about the long-term implications for the economy, the national debt, and political representation. As the government workforce continues to grow, striking the right balance between public sector needs and fiscal responsibility will be more important than ever.
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