Laid-off Feds Struggle: From High Salaries to Side Hustles

Over 300,000 federal workers and contractors were laid off in early 2025 following the Department of Government Efficiency's job cuts. Many, like John Burg, a former contractor for USAID, now find themselves in long-term unemployment. Burg, who applied to hundreds of jobs, now works as a carpenter, earning only 15% of his previous salary.

Organizations like WellFed and OneAID estimate that a significant portion of former federal employees remain unemployed or have taken jobs with substantially lower pay. Rebecca Ferguson-Ondrey of WellFed highlights the growing struggle with healthcare and the cessation of unemployment checks for many.

For those in the Washington, D.C. region, a hub for federal employment, the transition to the private sector has proven challenging. Catherine Baker of OneAID notes the difficulty in translating public sector skills and the lack of sufficient private sector jobs to absorb the displaced workforce.

David Harbourt, formerly with the FDA, now commutes bi-monthly to Kansas for consulting work, citing a stigma against former federal employees in the job market. This situation strains families, with one spouse often bearing the brunt of childcare and household responsibilities.

Many former federal employees describe their public service roles as a calling. The prolonged job search has taken a toll on their mental health, with challenges like depression being a constant battle. Bree Danner and Becky, among others, expressed feelings of diminished self-worth and the struggle to find meaningful, mission-driven work.

The impact extends to basic needs, with some struggling to afford healthcare. Becky, a single parent, resorted to returning to her hometown in Kentucky for a lower cost of living after losing her job, facing significant pay cuts and delayed health coverage.

Despite the hardships, many federal workers feel a strong sense of duty and take their oaths seriously, questioning the effectiveness of the DOGE cuts. They believe their service is valuable and that the cuts have not led to the promised government efficiency or savings.