The percentage of federal employees classified as 'thriving' plummeted from 58% in 2023 to just 48% in 2024, according to Govexec. The 10-percentage-point decline means nearly half the federal workforce now struggles with well-being.
However, 2025 federal reforms, intended to modernize the workforce, coincided with sharply declining worker engagement and well-being. This decline disproportionately affects federal workers compared to state and local governments, creating an unexpected tension.
Based on this significant drop in thriving and engagement, coupled with increased burnout, federal agencies face a looming crisis in workforce morale and retention, which could impair public service delivery.
Federal Workers Report Increased Burnout
In Q2 2025, federal employees were eight to nine points more likely than their state and local counterparts to report high burnout, according to Gallup. Federal workers experience unique, significant stress.
Around 29% of federal employees reported their workplace had been disrupted to a very large extent in Q3 2025, Federal News Network stated. Such widespread disruption correlates directly with the 10-percentage-point drop in 'thriving' status, indicating the reforms are a primary driver of well-being erosion.
Federal employment also began to decline relative to state and local government employment starting in late spring 2024, Gallup reported. The decline in federal employment points to a loss of competitive appeal for federal positions, manifesting as a tangible shift in the labor market.
Why is Federal Engagement Declining?
Global employee engagement declined for the second year in a row in 2025, according to Gallup. Yet, the federal sector's decline is not merely part of a larger trend.
