US Federal Employment Hits 1966 Low as Private Sector Adds 123K Jobs
The U.S. labor market is experiencing a decline in labor supply, even as private-sector employment expands. In April 2025, federal civilian jobs decreased by 9,000, marking a total reduction of 345,000 since January, the lowest level since 1966 at 2.66 million. Although state employment saw a slight increase, it remains down by 53,000 since January. Overall, federal and state job losses approach 400,000. Local government positions held steady in April but increased by 149,000 since January. The private sector created 123,000 jobs in April, contributing to a total of 511,000 nonfarm jobs added over the past year. The labor force contracted by 92,000 to 169.99 million, maintaining an unemployment rate of 4.3%, while average hourly earnings grew by 3.6% year-over-year.
Key facts
- Federal government shed 9,000 civilian jobs in April 2025.
- Since January 2025, federal employment down 345,000 (nearly 12%).
- Federal employment at 2.66 million, lowest since 1966.
- Federal jobs now 1.7% of total nonfarm payrolls, lowest in BLS history (since 1939).
- State government employment down 53,000 since January 2025.
- Combined federal and state job losses nearly 400,000 since January 2025.
- Local government employment unchanged in April, up 149,000 since January 2025.
- Private sector added 123,000 jobs in April; six-month average gain 68,000.
- Over 12 months, private sector added 511,000 nonfarm jobs.
- Total nonfarm payrolls rose 115,000 in April to record 158.7 million.
- Labor force dropped 92,000 in April to 169.99 million; down 1.45 million in six months.
- Unemployment rate 4.3% in April, unchanged from March.
- Prime-age labor force participation rate 83.8%, highest since Dotcom Bubble.
- Average hourly earnings up 3.6% year-over-year.
Entities
Institutions
- Bureau of Labor Statistics
- Wolf Street
Locations
- United States