Since the first day of President Trump’s second administration, the federal employment market has experienced a wave of changes, marked by hiring freezes and ongoing layoffs. These shifts have created a sense of uncertainty among federal workers, prompting the need for job seekers and employers to adapt to the evolving market conditions and talent pool.
The Current Federal Employment Landscape
On January 20, 2025, Trump signed a presidential memorandum initiating an immediate 90-day hiring freeze. This directive aimed to pause the filling of vacant and creation of federal civilian positions throughout the executive branch, with some exceptions.
While the initial freeze was set to expire on April 20, on April 17, Trump signed another presidential memorandum extending the hiring freeze for an additional three months, through July 15. And other agencies, such as the Department of Defense (DoD) and the General Services Administration (GSA), have also doubled down.
DoD Defense Secretary Pete Hegseth enacted a near-total freeze in February, following the government-wide directive, but has since issued guidance about the exemptions to some affected positions. Meanwhile, GSA has extended a hiring freeze ‘at least’ through 2025.
These measures are part of a broader initiative to reduce the size of the federal government and subsequently reduce government spending. The Department of Government Efficiency’s (DOGE) involvement has played a significant role in this, resulting in substantial layoffs over the past few months. Since February, DOGE’s cuts have led to more than 280,000 layoffs of federal workers and contractors across 27 agencies.
While job cuts have also increased in the private sector, none have been as extensive as those in the federal employment market. Economists at Moody's Analytics anticipate more layoffs of the federal workforce, projecting it will shrink by 400,000 over the next four years from its current level of three million. As these changes unfold, federal workers must explore new staffing strategies.
Sectors and Roles in Demand
Despite the challenges in federal employment, certain positions remain stable and even in demand:
- State and Local Government: With 83% of federal workers residing outside of Maryland, Virginia or Washington, D.C., states nationwide are opening doors for laid-off individuals. Through job fairs and online employment portals, state and local governments are actively recruiting skilled federal workers who have in-depth knowledge of programs and services that can benefit their communities. However, there is a caveat: state and local government budgets are limited, and continued layoffs could exert further pressure on these financial resources, potentially leading to widespread ripple effects.
- Information Technology (IT): In the IT sector, cybersecurity, AI, machine learning, cloud computing and data science are booming due to increasing digital reliance. There's also a growing need for IT support in healthcare.
- Accounting and Finance: The accounting and finance industries are witnessing a surge in demand for professionals equipped with AI, data analytics and cybersecurity skills, particularly in financial services, business and professional services, and manufacturing and transportation sectors.
- Human Resources (HR): In HR, careers focusing on technology leverage, AI for talent acquisition, employee experience and hybrid work management are thriving.
Employers: Adapting to a Changing Talent Pool
Government Contractors
Government contractors navigate a complex landscape as both opportunities and challenges mark the industry as a result of hiring freezes. As federal agencies face restrictions on awarding new contracts, they are increasingly relying on existing contracts to bridge staffing gaps in critical roles. This shift leads to modifications and expanded scopes of work for contractors who must adapt their strategies to meet the evolving demands.
This situation has intensified competition for skilled workers, as more federal employees seek employment in the private sector. Contractors must find innovative ways to attract and retain top talent, who are often highly educated and possess valuable experience, making them attractive to employers with government contracts.
Corporate and Private-Sector Organizations
Corporate and private-sector employers are presented with a unique opportunity to tap into a pool of highly skilled talent, enriched by deep regulatory, compliance and administrative expertise. The transition of federal workers into the private sector provides these organizations with access to individuals who possess significant experience and knowledge, offering a competitive edge in navigating complex regulatory landscapes.
By implementing strategic hiring practices and offering attractive employment packages, corporate entities can leverage the influx of skilled former federal employees to enhance their workforce capabilities.
Consulting
The shift in federal employment dynamics is also fueling growth in the freelance workforce. Many newly unemployed federal workers are turning to self-employment and independent consulting as viable and attractive career paths. This transition allows them to leverage their expertise in flexible, entrepreneurial work arrangements that adapt to the evolving labor market.
Cordia Resources by Cherry Bekaert recently collaborated with a regional commission to adapt to hiring constraints, employing interim/temporary consultants to maintain operations while awaiting opportunities for permanent hires.
Client Example
The commission contacted the Firm after their Budget Analyst retired, seeking a temporary consultant due to a federal hiring freeze. They intended to transition the consultant to a permanent role once the freeze was lifted, expecting this arrangement to last through the end of the year. Similarly, when a Finance Manager position opened, they chose to hire another consultant under a six-month contract, with the hope of converting this role to a direct hire subsequently. Additionally, the commission needed immediate help with developing Standard Operating Procedures (SOPs), prompting a focused, short-term project lasting one to two months.
Employees: Transitioning From Federal to Private-Sector Roles
The change can be tough for federal employees considering a switch to the private sector; however, those with cybersecurity experience or security clearance, as indicated above, could be most desirable to private companies. But regardless of their specialty, federal employees can take advantage of these tips to not only find a new position, but ease into the transition to a new role:
- Reframe government experience: Tailoring resumes to highlight transferable skills from the public to the private sector can benefit employees. Utilizing private-sector terms as well as industry language and nuances will also help reframe your experience more compellingly.
- Assess and build upon current skills: Upskilling and reskilling are critical, especially as technologies rapidly evolve, and can open new avenues for job seekers.
- Utilize network and community support: Networking, especially beyond government, during career transitions offers opportunities to make valuable professional connections and access vital resources.
- Be kind to yourself: While the emotional impact of layoffs can be profound, seeking support and focusing on future opportunities, rather than setbacks, is important.
Cordia Resources by Cherry Bekaert offers opportunities to connect with professionals, especially in the Greater Washington, D.C. area. If you want to be involved in our Spring networking opportunities, please contact us.
Recruiting & Staffing Services To Guide You Forward
Navigating the uncertainties of the federal employment market requires resilience, adaptability and strategic planning. As the landscape continues to shift under the influence of hiring freezes and layoffs, job seekers and employers alike must be proactive in their approaches to career development and talent acquisition.
At Cordia Resources by Cherry Bekaert, leveraging our extensive talent network and proven recruiting model, our goal is to empower individuals and organizations by providing the tools and connections necessary to thrive. Whether you're a federal worker exploring new career paths or a corporate employer looking to enhance your workforce with skilled talent, our services are designed to meet your unique needs.
