The federal government adding jobs has been a major part of job growth in the United States for years now. Usually, you’ll see that months that add net jobs to the economy, the federal government is a major factor in that outcome. Of course, the federal government adding jobs is not the same as the private sector adding jobs. The vast majority of federal government jobs are a drain on the economy by nature, with only very few of them proving to be helpful to bolstering the overall American economy and her industries.
During the Biden administration’s tenure, for example, there were many months in which the nation added a net of jobs to the economy but only because of the inclusion of government jobs. If you were to strip away government job growth from the Biden tenure, it would paint a very bleak picture of many months where the private sector was losing a net of jobs in many months.
At the start of the Trump administration, though, that is not happening. In fact, the opposite is happening. The federal government is taking cuts and the private sector is winning back manufacturing jobs with major corporations cutting deals with the Trump administration to reinvest hundreds of billions of dollars back into the U.S. as opposed to foreign nations.
Trump’s Efficiency Drive Sparks Major Federal Job Cuts, Signals Economic Revival
The federal government saw a significant drop in employment last month, shedding 10,000 jobs in February—the largest decline since June 2022, according to fresh data from the Bureau of Labor Statistics (BLS) released on Friday. This shift, detailed further by Federal Reserve Economic Data, comes as President Donald Trump presses forward with an ambitious plan to tackle government waste and trim unnecessary spending. The result? Sweeping layoffs across multiple federal agencies, a move that aligns with Trump’s vision of a leaner, more efficient government.
Peter Earle, a senior economist at the American Institute for Economic Research, sees this as a deliberate and promising step. “The recent decline in federal employment aligns with the Trump Administration’s objectives to both reduce government expenditure and enhance efficiency,” he recently shared with reporters. Leading the charge is the newly minted Department of Government Efficiency (DOGE), headed by Elon Musk, which has already notched up roughly 62,530 job cuts across 17 federal agencies. “DOGE has been the tip of the spear in that regard implementing significant workforce reductions across various federal agencies,” Earle added, noting that while unusual weather in January and February played a minor role, the bulk of these reductions stem from DOGE’s aggressive push to streamline operations and root out redundancies.
The White House is framing this as a win for the American people. In a Friday post on X, Press Secretary Karoline Leavitt didn’t hold back her enthusiasm for Trump’s economic leadership. “In one month under President Trump, the American economy is soaring back to greatness after the economic calamity left by Joe Biden,” she wrote. She pointed to a rebound in manufacturing, with 9,000 new auto jobs created—the highest in 15 months—and emphasized that 93% of February’s job gains came from the private sector. “This is great news for American workers and families,” Leavitt continued. “The Trump Administration will continue to work hard to implement pro-growth policies and push Congress to enact the Trump Economic Agenda.”
In one month under President Trump, the American economy is soaring back to greatness after the economic calamity left by Joe Biden. The manufacturing industry is already rebounding as there were 9,000 new auto jobs created — the most auto jobs added in 15 months! Under President…
— Karoline Leavitt (@PressSec) March 7, 2025
Trump wasted no time establishing DOGE after reclaiming the presidency, tasking Musk with slashing federal spending. The initiative has sparked mixed reactions: many Americans applaud the effort to curb wasteful bureaucracy, while Democrats have scrambled to resist what they see as overreach. Still, the numbers speak for themselves. A Thursday report from Challenger, Gray and Christmas revealed that February saw 62,242 planned job cuts across 17 federal agencies—the highest of any sector.
This stands in stark contrast to the previous administration. Under former President Joe Biden, federal employment ballooned, a surge often justified by the COVID-19 pandemic but accompanied by runaway spending. “Under President Biden’s tenure, federal government employment experienced modest growth, mostly responding to the COVID-19 pandemic,” Earle explained to reporters.
“Despite that moderate growth in the headcount, spending by federal agencies surged beyond inflation rates (mostly due to emergency programs and ramped up subsidies).” He pointed to the Environmental Protection Agency (EPA) as a prime example: despite a 13% drop in staff, its spending soared by 469%. “Musk & DOGE would not have had a hard time finding official bloat ten or twenty years ago,” Earle said, “but today it’s a target rich environment.”
Adding to the critique, much of Biden’s job growth favored foreign-born workers over Americans—a trend Trump’s team is eager to reverse. Alfredo Ortiz, CEO of Job Creators Network, praised the shift in a Friday press release. “President Trump and Elon Musk’s efforts to cut federal government waste are already bearing fruit, with 10,000 wasteful federal government positions eliminated last month,” he wrote. He noted that “quasi-government jobs in social assistance that provide little-to-no economic benefit” grew at half the pace seen under Biden. Strip those away, Ortiz argued, and the private sector—especially small businesses—delivered another strong month, with real wages climbing noticeably.
Trump’s approach isn’t just about cuts; it’s about redirecting energy to where it counts. With the private sector driving nearly all of February’s job gains and manufacturing showing signs of life, the administration sees this as proof that its pro-growth policies are taking root. For supporters, it’s a welcome return to an America-first economy—one that prioritizes efficiency, rewards hard work, and puts taxpayers ahead of bureaucratic excess. As DOGE continues its mission, the stage is set for a contentious but potentially transformative fight over the size and scope of government.
🚨BREAKING:
Donald Trump will announce today that TSMC (a Taiwanese chip maker) and Honda will invest a combined total of over $150B in the US economy to avoid the tariffs.
This
Is
WINNING pic.twitter.com/iXQyOHbupQ— Jonathan🇺🇸✝️ (@jonnygroves) March 3, 2025
Do you think government needs to shrink so the private sector can improve for the American people? Let us know what you think in the comments below.