Job Openings at Top U.S. Federal Contractors Plunge 44% Amid DOGE Cuts

Job openings among the largest U.S. federal contractors have experienced a significant decline, dropping at a rate 25 times faster than the overall job market. This sharp decrease coincides with substantial funding cuts implemented by the Department of Government Efficiency (DOGE), led by Elon Musk. According to data from Indeed, job listings for the 25 largest U.S. government contractors have fallen by 15% since January 20, while job openings in other sectors have only dipped by 0.6% during the same period.

The DOGE's efforts to reduce government waste and abuse have resulted in the termination of numerous private-sector contracts, impacting major companies such as Boeing, Honeywell, and Deloitte. The cuts have also affected tech companies like Oracle and Leidos, as well as consulting firms like Deloitte, which saw the elimination of at least 120 contracts totaling over $1 billion. These reductions have forced companies to make tough decisions, leading to a significant impact on their hiring plans and future outlook.

Companies have begun to report the financial implications of these cuts. Accenture, a tech consultancy, warned that the Trump administration's cost-cutting measures could affect its sales and revenue, as federal contracts make up a significant portion of its global and Americas revenue. Booz Allen Hamilton, another top contractor, announced layoffs of about 2,500 employees, primarily those working for non-defense U.S. agencies. The company's CEO, Horacio Rozanski, acknowledged the disruption caused by the presidential transition but expressed optimism about future opportunities.

The data from Indeed highlights a concerning trend in the labor market. Since February 2024, job listings for positions at government contractors have plummeted by 44%, while all other listings have increased by 14% since before the COVID-19 pandemic. This deviation in labor market trends suggests that the job market for government contractors is not following the same patterns as the rest of the labor market. The reduction in job openings for these contractors may limit opportunities for fired federal workers, college students, and young professionals entering the workforce.

According to Cory Stahle, the report's author and economist at the Hiring Lab, the broader labor market impact could be much larger than the data for the 25 companies indicates. Stahle emphasized the importance of achieving a soft landing in the labor market and expressed hope for a turnaround in the job market for government contractors. The significant decline in job openings among the largest U.S. federal contractors serves as a stark reminder of the far-reaching effects of government spending cuts on the private sector and the broader economy.