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.
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.
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.
5. Florida
Federal Civilian Employment: 88,64
Florida is regarded as favorable for federal employees due to several factors. Firstly, the absence of state income tax ensures higher take-home pay. Secondly, its diverse economy provides ample job opportunities in various sectors, including government roles. Thirdly, Florida’s warm climate and abundant recreational activities offer an attractive lifestyle. Additionally, the state’s relatively low cost of living compared to other major metropolitan areas stretches employees’ salaries further. Lastly, Florida hosts numerous federal agencies and military bases, providing a range of career options for federal workers.
4. Texas
Federal Civilian Employment: 122,864
A study by WalletHub has revealed that Texas receives more federal money than it pays in taxes, challenging the state’s self-reliant image. Despite Texas ranking 21st in federal dependency, it’s notable that state governments, rather than individuals, drive this reliance. Texas ranks near the bottom (41st) in individual taxpayer contribution versus federal employment. However, the state government heavily relies on federal grants, ranking tenth in this aspect. This dependency, which constitutes a third of Texas’ annual budget, mainly funds health, education, and infrastructure projects. For federal workers in Texas, this confirms the importance of federal funding in sustaining different sectors. They may experience stability due to the state’s reliance on federal grants, especially in fields like healthcare, education, and infrastructure. However, fluctuations in federal funding or policies could significantly impact their job security. As of Mar 5, 2024, the average annual pay for a Federal Employee in Texas is $101,582 a year.
3. Maryland
Federal Civilian Employment: 138,942
In Maryland, the looming threat of a federal government shutdown has sent shockwaves through communities heavily reliant on federal employment. With up to 160,000 federal workers facing furlough or unpaid work, the state’s economy hangs in the balance. The impact extends beyond direct employees, as thousands of contractors face potential loss of income without the guarantee of back pay. The human toll of such a shutdown is immeasurable, affecting essential services, transportation, and pushing many into financial hardship.
As state officials prepare contingency plans, Maryland’s reliance on federal funding confirms the urgency of reaching a spending agreement. With state resources earmarked to bridge financial gaps and assist affected workers, the shutdown’s duration remains uncertain. However, the ripple effects are already being felt, with businesses and communities bracing for economic strain and individuals facing emotional turmoil amid the uncertainty.
2. Virginia
Federal Civilian Employment: 140,397
In Virginia, the landscape of public sector employment is undergoing a major transformation. Governor Glenn Youngkin has decided to eliminate traditional college degree requirements for 90% of executive state jobs. The decision reflects a broader trend towards skills-based hiring. This decision also aligns with efforts in ten other states and even proposals at the federal level, championed by former President Donald Trump. By prioritizing competencies over formal education, the aim is to diversify the talent pool and address disparities in access to opportunities. However, concerns linger regarding the potential for subjectivity in candidate assessment and increased workload for hiring managers.
1. California
Federal Civilian Employment: 142,038
While California is the state with the most federal workers in the US by federal civilian employment, around 260,000 individuals are employed by the state in total, excluding those in public universities, while an additional 400,000 work within the University of California and California State University systems. The Sacramento Bee’s state worker pay database, drawing from the State Controller’s Office, provides insights into public employee compensation. Notably, figures for 2023 indicate that top earners among civil service employees include investment officers at state pension funds and the California State Compensation Insurance Fund. For instance, Christopher Ailman, chief investment officer for the California State Teachers’ Retirement System, received approximately $1.8 million in total compensation in 2023, overseeing retirement plans for about 1 million teachers and retired teachers.
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Disclosure: None. 15 States With the Most Federal Workers in the US is originally published on Insider Monkey.
