In this article, we will look at the 15 states with the most federal workers in the US. We have also discussed the job satisfaction levels of the federal workers. If you want to skip our detailed analysis, head straight to the 5 States With the Most Federal Workers in the US.
In the United States, only 15% of the 2.19 million civilian full-time federal employees are situated in the Washington metro area, while the remaining 85% are dispersed across the country. According to data from the Office of Personnel Management as of March 2023, federal workers earn an average annual salary of nearly $100,000. However, with the looming possibility of a government shutdown, federal employees face the prospect of halted paychecks and temporary work suspensions until the shutdown concludes, a scenario reminiscent of the 34-day shutdown in December 2018.
Despite the concentration of federal workers in the Washington area, comprising only 9% of the local workforce, other regions, particularly those near military installations, exhibit a higher proportion of government employees. For instance, federal civilian workers represent 17% of the workforce near the Patuxent River Naval Air Station in Southern Maryland. It is worth noting that the state government sector with the largest number of employees in the United States is typically the education sector, specifically public K-12 schools and universities. Moreover, Huntsville, Alabama is one of the cities with the most federal workers in the US.
In 2023, job satisfaction among US employees reached an unprecedented high, with 62% expressing contentment in their roles. According to the 2023 Federal Employee Viewpoint Survey, federal employees surpassed this average, with 68% reporting satisfaction, coupled with a notable rise in engagement to 72%, matching 2020's five-year peak. Kiran Ahuja, director of the US Office of Personnel Management, emphasized the resilience and increasing engagement of federal workers, highlighting their commitment to diversity, equity, inclusion, and accessibility (DEIA). However, challenges persist, notably in addressing poor performance, as 41% of respondents noted ineffective workers lingering without improvement, suggesting areas for organizational development.
The Bureau of Labor Statistics (BLS) recently released data showcasing the compensation discrepancies between state and local government workers and their private industry counterparts. According to the Employer Costs for Employee Compensation (ECEC) report, state and local government workers receive significantly higher total compensation, with an hourly rate of $60.56 compared to $43.11 for private industry employees. This disparity extends to both salaries and benefits, with government workers earning $37.53 in wages compared to $30.33 in the private sector, and receiving benefits worth $23.03 versus $12.77, respectively.
The figures indicate that state and local government workers enjoy compensation rates approximately 40.5% higher than those in the private industry. This disparity is particularly notable in benefits, where government workers receive 80.3% more than their private sector counterparts. Despite these attractive compensation packages, there are concerns regarding the sustainability of such benefits, especially considering the financial strains faced by some local governments.
Two of the most relevant companies for the federal workers in the US are Lockheed Martin Corp (NYSE:LMT) and UnitedHealth Group Inc (NYSE:UNH). Let’s see what they have to offer the federal workers.
Lockheed Martin Corp (NYSE:LMT) is another important aerospace and defense company that specializes in advanced technology systems, including aircraft, missiles, and cybersecurity solutions. Its products are extensively used by federal agencies such as the Department of Defense, the Department of Homeland Security, and intelligence agencies.
With approximately 70% of its revenue coming from government contracts,Lockheed Martin Corp (NYSE:LMT) is one of the largest suppliers to federal agencies. However, tensions arise as government officials advocate for a shift towards fixed-price contracts, viewing cost-plus contracts unfavorably.
At 30,000 feet, Lockheed Martin Corp (NYSE:LMT) financial performance appears strong, with its space segment showing promising growth fueled by US investments in missile defense. Yet, challenges persist, notably in joint ventures like United Launch Alliance, where profitability remains elusive amidst ambitious projects like the Vulcan rocket. Moreover, Lockheed Martin Corp (NYSE:LMT)’s foray into service-based pricing with its subsidiary Crescent confirms its shift towards adapting to evolving government procurement trends, signaling the company's willingness to explore alternative approaches.
On the other hand, UnitedHealth Group Inc (NYSE:UNH), the largest health insurance company in the world by net premiums written, provides health benefit programs for federal employees. With over 1.5 million medical providers and 7,000 hospitals and care facilities across the country, UnitedHealth Group Inc (NYSE:UNH) ensures broad access to healthcare services for federal workers.Moreover, UnitedHealth Group Inc (NYSE:UNH)’s health insurance plans offer competitive benefits, including preventive and treatment services with excellent National Committee for Quality Assurance (NCQA) ratings. The average deductible for a silver plan, often chosen by federal employees, stands at $3,619 per year, lower than many competitors. Despite slightly higher premiums compared to some rivals,UnitedHealth Group Inc (NYSE:UNH) ‘s plans deliver high-quality coverage, as evidenced by its favorable complaint ratio and AM Best financial strength rating of A+ (Superior).
In essence, federal workers benefit from UnitedHealth Group Inc (NYSE:UNH)’s extensive provider network, affordable deductibles, and superior quality ratings, making it an ideal choice for their healthcare needs.
15 States With the Most Federal Workers in the US
An accountant in a suit entering the Federal Reserve with an arm full of U.S. Treasury securities.
Our Methodology
To list the states with the most federal workers in the US, we relied on the data from the Congressional Research Service Report of 2023. Please note that uniformed military personnel and federal contractors are excluded. The list is presented in ascending order.
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15. Colorado
Federal Civilian Employment: 38,089
As one of the states with most federal employees, federal workers play a pertinent role in different sectors. Excluding certain agencies, such as the CIA and NSA, the US Office of Personnel Management indicates approximately 10,500 employees within the USPS alone. Denver, with its prominent Denver Federal Center hosting 28 agencies including the National Ice Core Lab, has the highest concentration of federal workers. Federal employment constitutes roughly 2% of Colorado's total workforce.
14. Alabama
Federal Civilian Employment: 39,264
A recent efficiency study on Alabama's state government identified multiple issues. Outdated methods and duplicated services plague over 150 executive branch entities. There are recommendations to merge historical authorities, requiring electronic payments, and consolidating workforce development boards.
13. Oklahoma
Federal Civilian Employment: 40,461
In Oklahoma, a recent report revealed stark disparities in pay between state and private-sector employees. Among the 18,784 state workers surveyed, 57% were found to be underpaid compared to their counterparts in private businesses. Notably, the Oklahoma Tax Commission has initiated salary increases for its employees, aiming to bring their pay within 10% of private-sector levels
12. Illinois
Federal Civilian Employment: 42,637
AFSCME is Illinois' largest government-worker union that seeks $3 billion for salaries and benefits. Yet, Illinois state workers are the country’s highest-paid workers and already receive generous compensation. AFSCME's demands include raises of 29% over four years, a 37.5-hour work week, five weeks of vacation, and enhanced health care.
With 42,637 federal civilian employees, it is one of the best states for government jobs in USA.
11. North Carolina
Federal Civilian Employment: 47,960
The State Employees Association of North Carolina (SEANC) is advocating for a 5% pay increase for state workers over the next two years. The Senate budget has proposed a 2.5% raise, while the House offered 4.25%. SEANC also requested a $5,000 retention bonus and a 2% cost of living adjustment for retirees. With 23.4% of state government jobs vacant and a 37% turnover rate, recruiting and retaining staff have become critical for the state.
10. New York
Federal Civilian Employment: 51,716
In New York State, full-time local government employees outside New York City decreased by almost 8% over 15 years, dropping from 491,102 to 452,298 between 2007 and 2022. Nevertheless, New York still has also one of the highest percentage of government employees by state.
9. Ohio
Federal Civilian Employment: 52,583
Ohio's state government has embraced skill-based hiring. This pioneering approach enhances job seekers' prospects, recognizing diverse skill sets beyond academic degrees. State job postings now prominently feature primary skills, alongside technical and professional proficiencies, reflecting the demands of 21st-century roles. To read more about such roles, see the Highest Paying Jobs That Don’t Require a Degree or Experience.
8. Washington
Federal Civilian Employment: 54,526
Washington, D.C.'s mayor is strongly advocating for the return of federal employees to offices, paralleling her push for city workers to resume office attendance four days a week, focusing on community engagement, collaboration, and support for local businesses. However, this directive is facing resistance from some city employees who prefer remote work for its community interaction and question the emphasis on office presence over productivity.
7. Pennsylvania
Federal Civilian Employment: 63,560
In Pennsylvania, a pilot program will deploy OpenAI’s ChatGPT Enterprise service to assist state workers in administrative tasks. Initially involving an unspecified number of Office of Administration employees, the program aims to gather feedback to potentially expand access to another 100 licenses. Led by Neil Weaver, secretary of Pennsylvania’s Office of Administration, the initiative seeks to maximize the impact of generative AI tools.
6. Georgia
Federal Civilian Employment: 77,034
In anticipation of another partial government shutdown, over 3.5 million federal employees and military personnel prepare for potential furloughs and pay freezes, including 77,000 civilian federal workers in Georgia. The looming shutdown, stemming from House Republicans' struggle to produce a short-term funding plan, could disrupt the livelihoods of millions, with some essential workers like military personnel and TSA officers continuing to work without pay.
