# The True Size of the Government Workforce is Unimaginable Source: https://www.youtube.com/watch?v=68pnAcgU9wc Recap page: https://rapidrecap.app/video/68pnAcgU9wc Generated: 2025-10-22T13:33:40.022+00:00 --- ## Quick Overview The true size of the federal government's workforce, when factoring in contract and grant employees, is dramatically larger than the official civilian employee count, totaling approximately 11.3 million full-time equivalent workers in 2023, with contract workers making up the largest segment at 5.22 million, which significantly outnumbers the 2.1 million direct civil service employees. **Key Points:** - The federal government's total full-time equivalent workforce reached 11.3 million in FY 2023, dwarfing the 2.1 million direct civil service employees. - Contract employees constitute the largest portion of the federal workforce, accounting for 5.22 million FTEs in 2023, a number that has remained steady since 2020. - Federal military personnel decreased significantly from 2.14 million in 1984 to 1.18 million in 2023. - The narrative often focuses on the 3 million federal employees (civilian, military, postal), but the 5.22 million contract workers and 2.31 million grant workers are essentially extensions of government work. - Local government employment has grown substantially over the last 60+ years to 15 million, while federal government employment has remained relatively flat when only counting direct employees. - The speaker argues that the distinction between a government employee and a contractor paid by the government is often meaningless for tax and resource allocation discussions, as the government wields coercive power over both. ![Screenshot at 16:17: Speaker points out that 10% of the US population, or 33 million people, are employed by a government entity \(federal, state, or local\) when counting all categories, contrasting with the smaller number of people working directly for the federal government.](https://ss.rapidrecap.app/screens/68pnAcgU9wc/00-16-17.png) **Context:** This video analyzes the actual scope of the United States federal government's workforce by moving beyond the commonly cited official figures of civilian employees to include contract and grant employees, using data sourced from the U.S. Bureau of Labor Statistics (BLS) via FRED, spanning from 1984 to 2023. ## Detailed Analysis The speaker contends that the true size of the federal government's workforce is much larger than the commonly reported 3 million direct employees (civilian, military, postal). By incorporating contract and grant employees, the total full-time equivalent (FTE) federal workforce reached 11.3 million in 2023. The largest component is contract workers at 5.22 million FTEs, which has been stable since 2020. Grant-funded workers totaled 2.31 million, and direct civil service employees were 2.1 million, with military personnel at 1.18 million. This 11.3 million figure is compared to state government (5.5 million) and local government (15 million) employment, showing that state and local workforces have grown much faster than the federal workforce over the last 75 years. The speaker emphasizes that the distinction between a direct employee and a contractor paid by the government is often irrelevant for assessing coercive power or resource drain, as contractors are essentially extensions of the government, funded by taxpayer money, and often lack the same accountability as direct employees. The speaker concludes that roughly 10% of the US population is employed by some level of government, and the government's massive funding of these contract roles represents a net drain on wealth. ### Federal Workforce Breakdown (FY 1984-2023) - Contract employees hit 5.22 million by 2023, matching 2020 levels; Grant employees at 2.31 million (2023); Civil service at 2.1 million; Military dropped to 1.18 million in 2023. ### Total Government Employment Comparison - Local government employment exploded to 15 million; State government stabilized around 5.5 million; Federal government (direct employees) remained steady around 3 million. ### The Nature of Contracting - Contractors are an extension of the government, funded by taxpayer money, and the government uses its coercive power (taxation) to fund them, making the distinction from direct employees artificial for analysis. ### Implications of Scale - If 10% of the US population (33 million) works for any government level, and 40% of the federal workforce is contracted, the system incentivizes government-directed spending rather than true free-market production. ### Data Caveats - The employment data excludes military personnel, CIA, NSA, NGA, and DIA employees, but includes Postal Services. ![Screenshot at 00:21: The video introduces the topic by displaying an infographic titled "Trump's Federal Layoffs" showing proposed job cuts across various agencies.](https://ss.rapidrecap.app/screens/68pnAcgU9wc/00-00-21.png) ![Screenshot at 00:37: A news headline graphic appears: "Judge pauses shutdown layoffs at more than 30 federal agencies."](https://ss.rapidrecap.app/screens/68pnAcgU9wc/00-00-37.png) ![Screenshot at 00:54: A stacked bar chart illustrates the growth of federal payroll, showing that contract and grant employees have grown significantly while civil service remained relatively flat since the 1990s.](https://ss.rapidrecap.app/screens/68pnAcgU9wc/00-00-54.png) ![Screenshot at 01:31: A line graph displaying "All Employees, Federal" thousands of persons from 1940 to 2025 shows the relatively flat trend of direct federal employment over decades.](https://ss.rapidrecap.app/screens/68pnAcgU9wc/00-01-31.png) ![Screenshot at 02:00: A bar chart detailing "Estimated full-time equivalent federal employees in millions" from FY 1984 to 2023, highlighting the massive size of Contract \(orange\) and Grant \(grey\) roles compared to Civil Service \(dark blue\).](https://ss.rapidrecap.app/screens/68pnAcgU9wc/00-02-00.png) ![Screenshot at 05:54: The speaker gestures emphatically while noting that 11.3 million people are funded by the government, far exceeding the 3 million direct employees.](https://ss.rapidrecap.app/screens/68pnAcgU9wc/00-05-54.png) ![Screenshot at 06:56: A line graph comparing Local, State, and Federal government employment growth since 1955, illustrating the massive growth in Local Government employment \(blue line\) versus the stagnant Federal Government line \(red\).](https://ss.rapidrecap.app/screens/68pnAcgU9wc/00-06-56.png) ![Screenshot at 12:03: A line graph titled "Employment Level" shows the overall trend of government employment since 1940, with a sharp drop around 2020.](https://ss.rapidrecap.app/screens/68pnAcgU9wc/00-12-03.png) ![Screenshot at 12:42: A bar chart breaks down FTE federal employees by category \(Civil Service, Military, Postal, Contract, Grant\) for specific years, clearly showing Contract \(orange\) as the largest component in 2023 \(5.22 million\).](https://ss.rapidrecap.app/screens/68pnAcgU9wc/00-12-42.png)