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Federal Government, Excluding the Postal Service

Nature of the Industry  |  Working Conditions  |  Employment  |  Occupations in the Industry
Training and Advancement  |  Job Outlook  |  Earnings

Significant Points

• More than half of Federal workers held managerial or professional jobs, double the rate for the workforce as a whole.
• About 4 out of 5 Federal employees work outside the Washington, DC, metropolitan area.
• Federal employment is projected to decline slightly due to budgetary constraints, the growing use of private contractors, and the transfer of some functions to State and local governments.

Nature of the Industry

Over 200 years ago, the founders of the United States gathered in Philadelphia, PA, and created a constitution for a new national government and laid the foundation for self-governance in America. The Constitution of the United States, ratified by the last of the 13 original states in 1791, created the three branches of the Federal Government and granted certain powers and responsibilities to each. The legislative, judicial, and executive branches were created with equal powers but very different responsibilities that act to keep their powers in balance.

The legislative branch is responsible for forming and amending the legal structure of the Nation. Its largest component is Congress, the primary U.S. legislative body, which is made up of the Senate and the House of Representatives. This body includes senators, representatives, their staffs, and various support workers. The legislative branch employs only about 1 percent of Federal workers, nearly all of whom work in the Washington, DC, area.

The judicial branch is responsible for interpreting the laws that the legislative branch enacts. The Supreme Court, the Nation’s definitive judicial body, makes the highest rulings. Its decisions usually follow an appeal of a decision made by the one of the regional Courts of Appeal, which hear cases appealed from U.S. District Courts, the Court of Appeals for the Federal Circuit, or State Supreme Courts. U.S. District Courts are located in each State and are the first to hear most cases under Federal jurisdiction. The judicial branch employs about the same number of people as the legislative branch, but its offices and employees are dispersed throughout the country.

Of the three branches, the executive branch—through the power vested by the Constitution in the office of the President—has the widest range of responsibilities. Consequently, it employed about 97 percent of all Federal civilian employees (excluding postal workers) in 2000. The executive branch is composed of the Executive Office of the President, 14 executive cabinet departments, and nearly 90 independent agencies, each of which has clearly defined duties. The Executive Office of the President is composed of several offices and councils that aid the President in policy decisions. These include the Office of Management and Budget, which oversees the administration of the Federal budget; the National Security Council, which advises the President on matters of national defense; and the Council of Economic Advisers, which makes economic policy recommendations.

Each of the 14 executive cabinet departments administers programs that oversee an element of American life. The highest departmental official of each cabinet department, the Secretary, is a member of the President’s cabinet. Each, listed by employment size, is described below (table 1).

• Defense: Manages the military forces that protect our country and its interests, including the Departments of the Army, Navy, Air Force, and a number of smaller agencies. The civilian workforce employed by the Department of Defense performs various support activities, such as payroll and public relations.
• Veterans Affairs: Administers programs to aid U.S. veterans and their families, runs the veterans’ hospital system, and operates our national cemeteries.
• Treasury: Regulates banks and other financial institutions, administers the public debt, prints currency, collects federal income taxes, and carries out law enforcement in a wide range of areas, including counterfeiting, tax, and customs violations.
• Justice: Enforces Federal laws, prosecutes cases in Federal courts, and runs Federal prisons.
• Agriculture: Promotes U.S. agriculture domestically and internationally and sets standards governing quality, quantity, and labeling of food sold in the United States.
• Interior: Manages Federal lands including the national parks and forests, runs hydroelectric power systems, and promotes conservation of natural resources.
• Transportation: Sets national transportation policy; runs the Coast Guard (except in time of war); plans and funds the constructionof highways and mass transit systems; and regulates railroad, aviation, and maritime operations.
• Health and Human Services: Sponsors medical research, approves use of new drugs and medical devices, runs the Public Health Service, and administers Medicare.
• Commerce: Forecasts the weather, charts the oceans, regulates patents and trademarks, conducts the census, compiles statistics, and promotes U.S. economic growth by encouraging international trade.
• Energy: Coordinates the national use and provision of energy, oversees the production and disposal of nuclear weapons, and plans for future energy needs.
• Labor: Enforces laws guaranteeing fair pay, workplace safety, and equal job opportunity; administers unemployment insurance; regulates pension funds; and collects and analyzes economic data at the Bureau of Labor Statistics.
• State: Oversees the Nation’s embassies and consulates, issues passports, monitors U.S. interests abroad, and represents the United States before international organizations.
• Housing and Urban Development: Funds public housing projects, enforces equal housing laws, and insures and finances mortgages.
• Education: Provides scholarships, student loans, and aid to schools.

 

Table 1. Federal Government executive branch civilian employment, except U.S. Postal Service, September 2000 (Employment in thousands)
	United States	Washington, DC area
Total	1,700	272
Executive departments
Defense, total	623	64
Army	207	19
Navy	177	25
Air Force	148	5
Other	91	14
Veterans Affairs	216	7
Treasury	142	23
Justice	123	22
Agriculture	103	11
Interior	73	8
Transportation	63	10
Health and Human Services	62	28
Commerce	47	21
Energy	16	5
Labor	16	5
State	11	9
Housing and Urban Development	10	3
Education	5	3
Independent agencies
Social Security Administration	64	2
National Aeronautics and Space Administration	19	4
Environmental Protection Agency	18	6
General Services Administration	14	5
Tennessee Valley Authority	13	0
Federal Deposit Insurance Corporation	7	3
Source: U.S. Office of Personnel Management

Numerous independent agencies perform tasks that fall between the jurisdictions of the executive departments or that are more efficiently executed by an autonomous agency. Some smaller, but well- known independent agencies include the Peace Corps, the Securities and Exchange Commission, and the Federal Communications Commission. Although the majority of these agencies are fairly small, employing fewer than 1,000 workers (many employ fewer than 100 workers), some are quite large. The largest independent agencies are:

• Social Security Administration: Operates various retirement and disability programs and Medicaid.
• National Aeronautics and Space Administration: Oversees aviation research and conducts exploration and research beyond the Earth’s atmosphere.
• Environmental Protection Agency: Runs programs to control and reduce pollution of the Nation’s water, air, and lands.
• General Services Administration: Manages and protects Federal Government property and records.
• Tennessee Valley Authority: Operates the hydroelectric power system in the Tennessee river valley.
• Federal Deposit Insurance Corporation: Maintains stability of and public confidence in the Nation’s financial system, by insuring deposits and promoting sound banking practices.

Working Conditions

Due to the wide range of Federal jobs, most of the working conditions found in the private sector also are found in the Federal Government. Most white-collar employees work in office buildings, hospitals, or laboratories, and most of the blue-collar workforce can be found in warehouses, shipyards, military bases, construction sites, national parks, and national forests. Work environments vary from comfortable and relaxed to hazardous and stressful, such as those experienced by law enforcement officers, astronauts, and air traffic controllers. 

The vast majority of Federal employees work full time, often on flexible or “flexi-time” schedules that allow workers more control over their work schedules. Some agencies also offer telecommuting or “flexi-place” programs, which allow selected workers to perform some job duties at home or from regional centers. 

Some Federal workers spend much of their time away from the offices in which they are based. Inspectors and compliance officers, for example, often visit businesses and worksites to ensure that laws and regulations are obeyed. Some Federal workers frequently travel long distances, spending days or weeks away from home. Auditors, for example, may spend weeks at a time in distant locations.  

Employment

In 2000, the Federal Government employed about 1.9 million civilian workers, or about 1.3 percent of the Nation’s workforce. Although the Federal Government employs workers in every major occupational group, workers are not employed in the same proportions in which they are employed throughout the economy as a whole (table 2). The analytical and technical nature of many government duties translates into a much higher proportion of professional, management, business, and financial occupations in the Federal Government, compared with most industries. Conversely, the Government sells very little, so it employs relatively few sales workers. 

Even though most Federal departments and agencies are based in the Washington, DC, area, fewer than 1 in 5 Federal employees worked in the vicinity of the Nation’s Capital in 2000. In addition to Federal employees working throughout the United States, about 5 percent are assigned overseas, mostly in embassies or defense installations.  

Occupations in the Industry

Although the Federal Government employed workers in almost every occupation in 2000, about 78 percent of Federal workers were employed in professional and related; management, business, and financial; or office and administrative support occupations (table 2). Professional and related occupations comprise about 31 percent of Federal employment. The largest group of these workers are engineers, such as chemical, civil, aeronautical, industrial, electrical, mechanical, and nuclear engineers. These professionals are found in many departments of the executive branch, but they most commonly work in the Department of Defense, the National Aeronautics and Space Administration, and the Department of Transportation. In general, they solve problems and provide advice on technical programs, such as building highway bridges or implementing agency-wide computer systems.

Other professional and related workers include computer software engineers, computer scientists, and systems analysts, who are employed throughout government. They write computer programs, analyze problems related to data processing, and keep computer systems running smoothly. Also in this group are health professionals, such as registered nurses and physicians and surgeons, most of whom are employed by the Department of Veterans Affairs (VA) in one of the many VA hospitals. Other professionals include life scientists, such as biological scientists, and physical scientists, such as geologists, meteorologists, and physicists, who examine the state of the earth and research physical phenomena. The Department of Agriculture employs the vast majority of life scientists, but physical scientists are distributed throughout government. 

Other members of this group aid in research, analysis, or law enforcement. Often their tasks and skills are quite specialized, as with engineering technicians, who may work either directly with engineers or by themselves. 

Management, business, and financial workers, who comprise about 27 percent of Federal employment, are primarily responsible for overseeing operations. Legislators, for example, are responsible for passing and amending laws. Managerial workers include a broad range of officials who, at the highest levels, may head Federal agencies or programs. Middle managers, on the other hand, usually oversee one activity or aspect of a program. 

Others provide management support. Accountants and auditors prepare and analyze financial reports, review and record revenues and expenditures, and investigate operations for fraud and inefficiency. Tax examiners, collectors, and revenue agents determine and collect taxes. Purchasing agents handle Federal purchases of supplies; and management analysts study government operations and systems and suggest improvements. 

More than 1 Federal worker in 5 is in an office and administrative support occupation. These employees aid management staff with administrative duties. Administrative support workers in the Federal Government include secretaries, procurement clerks, and word processors and typists. 

Compared with the economy as a whole, workers in service occupations are relatively scarce in the Federal Government. More than half of all Federal workers in these occupations are protective service workers, such as detectives and criminal investigators, police and sheriff’s patrol officers, and correctional officers. These workers protect the public from crime and oversee Federal prisons. 

Federally employed workers in installation, maintenance, and repair occupations include aircraft mechanics and service technicians who fix and maintain all types of aircraft, and electrical and electronic equipment mechanics, installers, and repairers who inspect, adjust, and repair electronic equipment such as industrial controls, transmitters, antennas, radar, radio, and navigation systems. 

The Federal Government employs a relatively small number of workers in transportation, production, and construction occupations, such as air traffic controllers and inspectors, testers, sorters, samplers, and weighers. 

Training & Advancement

In general, each Federal department or agency determines its own training requirements and offers workers opportunities to improve job skills or become qualified to advance to other jobs. These may include technical or skills training, tuition assistance or reimbursement, fellowship programs, and executive leadership and management training programs, seminars, and workshops. This training may be offered on the job, by another agency, or at local colleges and universities.

Advancement in the Federal Government is commonly based on a system of occupational pay levels, or “grades.” Workers enter the Federal civil service at the starting grade for an occupation and begin a “career ladder” of promotions until they reach the full-performance grade for that occupation. This system provides for a limited number of noncompetitive promotions which usually are awarded at regular intervals, assuming job performance is satisfactory. Although these promotions do not occur more than once a year, they sometimes are awarded in the form of two-grade increases. The exact pay grades associated with a job’s career track depend upon the occupation. Typically, workers without a high school diploma who are hired as clerks start at grade 1, and high school graduates with no additional training hired at the same job start at grade 2 or 3. Entrants with some technical training or experience who are hired as technicians may start at grade 4. Those with a bachelor’s degree generally are hired in professional occupations, such as economist, with a career ladder that starts at grade 5 or 7, depending on academic achievement. Entrants with a master’s degree or Ph.D. may start at grade 9. Individuals with professional degrees may be hired at the grade 11 or 12 level.

New employees usually start at the first step of a grade; however, if the position in question is difficult to fill, entrants may receive somewhat higher pay or special rates. Almost all physician and engineer positions, for example, fall into this category.

Once nonsupervisory Federal workers reach the full-performance level of the career track, they usually receive periodic step increases within their grade if they are performing their job satisfactorily. They must compete for subsequent promotions, and advancement becomes more difficult. At this point, promotions occur as vacancies arise, and they are based solely on merit. In addition to within-grade longevity increases, Federal workers are awarded bonuses for excellent job performance.

Workers who advance to managerial or supervisory positions may receive within-grade longevity increases, bonuses, and promotions to higher grades. The top managers in the Federal civil service belong to the Senior Executive Service (SES), the highest positions Federal workers can reach without being specifically nominated by the President and confirmed by the U.S. Senate. Relatively few workers attain SES positions, and competition is intense. Bonus provisions for SES positions are even more performance based than those for lower-level positions. Because it is the headquarters for most Federal agencies, the Washington, DC, metropolitan area offers the best opportunities to advance to upper-level managerial and supervisory jobs.

 

Table 4. Federal Government General Schedule pay rates, 2001
GS level	Entrance level	Step increase	Maximum level
1	$14,244	$ varies	$17,819
2	16,015	varies	20,156
3	17,474	582	22,712
4	19,616	654	25,502
5	21,947	732	28,535
6	24,463	815	31,798
7	27,185	906	35,339
8	30,107	1,004	39,143
9	33,254	1,108	43,226
10	36,621	1,221	47,610
11	40,236	1,341	52,305
12	48,223	1,607	62,686
13	57,345	1,912	74,553
14	67,765	2,259	88,096
15	79,710	2,657	103,623
SOURCE: U.S. Office of Personnel Management

Job Outlook

Wage and salary employment in the Federal Government is projected to decline by 8 percent through the year 2010, while the salaried economy as a whole is expected to grow 16 percent. The projected reduction in Federal jobs reflects governmental cost-cutting, the growing use of private contractors, and continuing devolution—the practice of turning over the development, implementation, and management of some programs of the Federal Government to State and local governments. As a result, keen competition is expected for many Federal positions, especially during times of economic uncertainty when workers seek the stability of Federal employment. In general, Federal employment is considered to be relatively stable because it is not affected by cyclical fluctuations in the economy, as are employment levels in many construction, manufacturing, and other private sector industries. 

Because of its public nature, the factors that influence Federal Government staffing levels are unique. The Congress and President determine the Government’s payroll budget prior to each fiscal year, which runs from October 1 through September 30 of the following year. Each Presidential administration and Congress have different public policy priorities, resulting in increasing levels of Federal employment in some programs and declines in others. The effect of these priorities in recent years has been a decline in Department of Defense civilian employment, which equals about 40 percent of Federal civilian employment. Although this decline is expected to level off over the next decade, the emphasis on reduced government payrolls will lead to decreases in employment in many other agencies. 

Much of this decline will be carried out through attrition—simply not replacing workers who retire or leave the Federal Government for other reasons. Layoffs, called “reductions in force,” have occurred in the past, but they are uncommon and usually affect relatively few workers. In spite of attrition and declining employment, there still will be numerous employment opportunities in many agencies due to the need to replace workers who leave the workforce, retire, or accept employment elsewhere. Furthermore, some occupations, especially professional, managerial, and protective service occupations, will be in demand even as employment in other occupations is being reduced. 

The distribution of Federal employment will continue to shift toward a higher proportion of professional and managerial workers, as employment declines will be most rapid in administrative support, installation, maintenance, and repair occupations. Employment of office and administrative support workers in the Federal Government will be adversely affected by office automation. Employment among repair, construction, and production occupations is expected to decline as many of their functions are contracted out to private companies.  

Earnings

In 2000, the average worker paid under the General Schedule earned $51,565. At $102,392, patent administrators had the highest average earnings (table 5), while some administrative support workers started at salaries less than $15,000.
 

Table 5. Average annual salaries in the Federal Government in selected occupations, March 2001
Occupation	Salary
All occupations	$51,565
Patent administrator	102,392
Astronomer	89,734
Attorney	86,673
Financial manager	79,840
Computer scientist	75,351
Economist	74,089
Podiatrist	73,172
Chemist	70,435
Electrical engineer	69,560
Statistician	68,901
Architect	68,872
Microbiologist	67,835
Accountant	64,767
Personnel manager	64,411
Librarian	63,651
Chaplain	63,366
Ecologist	61,936
Intelligence agent	61,424
Budget Analyst	56,706
Physical therapist	55,213
Social worker	54,129
Botanist	53,131
Nurse	51,019
Engineering technician	50,850
Law clerk	46,533
Border Patrol agent	43,917
Fire protection and prevention worker	33,915
Secretary	33,354
Police officer	32,934
Medical technician	30,183
Dental assistant	27,387
Nursing assistant	26,992
Mail and file clerk	26,038
SOURCE: U.S. Office of Personnel Management

The Federal Wage System (FWS) is used to pay most Federal workers in craft, repair, operative, and laborer jobs. This schedule sets Federal wages so that they are comparable to prevailing regional wage rates for similar types of jobs. As a result, wage rates paid under the FWS can vary significantly from one locality to another.

In addition to base pay and bonuses, Federal employees may receive incentive awards. These one-time awards, ranging from $25 to $10,000, are bestowed for a significant suggestion, a special act or service, or sustained high job performance. Some workers also may receive “premium” pay, which is granted when the employee must work overtime, on holidays, on Sunday, at night, or under hazardous conditions.

Benefits are an important part of Federal employee compensation. Federal employees may choose from a number of health plans and life insurance options; premium payments for these policies are partially offset by the government. In addition, workers hired after January 1, 1984, participate in the Federal Employees Retirement System (FERS), a three-tiered retirement plan including Social Security, a pension plan, and an optional Thrift Savings Plan. Worker participation in the Thrift Savings Plan is voluntary, but any contributions made are tax-deferred, and, up to a point, matched by the Federal Government. In addition to other benefits, some Federal agencies provide public transit subsidies in an effort to encourage employee use of public transportation.

Federal employees receive both vacation and sick leave. They earn 13 days of vacation leave a year for the first 3 years, 20 days a year for the next 12 years, and 26 days a year after their fifteenth year of service. Workers also receive 13 days of sick leave a year, which may be accumulated indefinitely. About 60 percent of all Federal civilian employees are represented by unions through their bargaining units, although a smaller percentage of these employees actually belong to a union.

Source: Career Guide to Industries, Bureau of Labor Statistics

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