Fox Business Host Stuart Varney examines federal agency confusion over Elon Musk's ultimate productivity email.
Elon Musk's Office of Government Efficiency (DOGE) is working to cancel contracts to cut the federal workforce and save money through layoffs and acquisitions. economy.
president Donald Trump's The administration has left Musk and Doji to find ways to reduce costs and increase the efficiency of federal agencies. The administration extended its offer to federal workers shortly after taking office, with various agencies announcing layoffs for probation employees and placing some on administrative leave ahead of potential layoffs.
These actions could create new challenges for the US economy from a labor market perspective if a large number of federal workers or contractors are unable to finish their work and find another job.
Dante Dianio, labor economist at Moody's analysis, told the FOX business that the company hopes federal labor cuts continue throughout the year. Whether the broader labor market will begin to decline.
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President Donald Trump, left, Elon Musk, is using doges to reduce federal workers. (Fox News Channel / Fox News)
“We estimate that around 100,000 federal workers have already been fired or accept a postponed acquisition offered by the Trump administration,” Dianio explained. “The impact on the labor market will be delayed as approximately 75,000 workers agreeing to a postponed acquisition are due by September. Approximately 25,000 federal workers will be fired or left administrative leave. We've got it and it could be layoffs last.”
“These numbers are almost certainly growing in the coming weeks and months, and we will begin to see the impact of these layoffs on unemployment claims data first.
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Doge's efforts to reduce the federal workforce have elicited protests. (Alex Wong / Getty Images / Getty Images)
Deantonio pointed out that the federal government has around 3 million workers at the start of 2025, excluding the military. Federal workers account for around 1.9% of US salaries, and “the private sector should be able to absorb some of these. Workers.”
“The biggest risk is that the layoffs we've seen so far are just the tip of the iceberg. The magnitude and timing of future layoffs will determine whether the labor market can stay on the railroad,” Dianio explained. I did. “We currently expect the size of the federal workforce to shrink approximately 400,000 throughout 2025 due to a combination of ongoing employment freezes, postponed resignations and layoffs for the Doge launch.”
Doge claims $65 billion in total savings as the “Agency Efficiency Leaderboard” has been launched
President Donald Trump encouraged Elon Musk to become more aggressive with Doge's cut. (Chris Unger / Zuffa LLC / Getty Images)
Torsten Slok, partner and chief economist at Apollo Global Management, wrote in a post published Saturday that he is “starting to worry about the risks of shortcomings to the economy and market,” calling the impact of Jobbress on the Doge Layoffs and Contract reductions. I've quoted it. “We argue that one of these factors is increasing policy uncertainty.
“The consensus writes that “the consensus expects a total of 300,000 Doge-related total,” and that while unemployment is rising in Washington, DC, combined with Maryland and Virginia, it has not increased. Ta. Federal employees work.
“The total employment in the US is 160 million, with 7 million unemployed people. And about 5 million people change jobs each month. In that context, 300,000 federal employment is Not that much,” explained Slok. “But research shows that every federal employee has two contractors. As a result, layoffs could be close to one million.”
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“The rise in layoffs will raise unemployment claims over the coming weeks, and such a rise in unemployment rates is likely to affect fees, stocks and credit,” Slok added.
