[Analytical Perspectives]
[Special Analyses and Presentations]
[10. Federal Employment]
[From the U.S. Government Publishing Office, www.gpo.gov]


 
                 10. FEDERAL EMPLOYMENT AND COMPENSATION

   This section provides information on civilian employment policy as 
well as civilian and military employment, and personnel compensation and 
benefits, in the Executive, Legislative, and Judicial branches. A 
comparison of Federal employment levels, State and local government 
employment, and the United States population appears in the Historical 
Tables. Additional tables on civilian employment reductions appear in 
the Budget volume.

                       Civilian Employment Policy

   The Administration policy is to provide executive branch agencies 
with flexibility to hire the right numbers of staff to meet program 
requirements. While it is not the norm, agency or sub-agency employment 
targets may be necessary when it is determined to be the most efficient 
or effective method of achieving Administration goals.

           Federal Civilian Employment in the Executive Branch

   Civilian employment in the Executive Branch is measured on the basis 
of full-time equivalents (FTEs). One FTE is equal to one work year or 
2,080 non-overtime hours. Put simply, one full-time employee counts as 
one FTE, and two half-time employees also count as one FTE.
   The Federal Workforce Restructuring Act (FWRA) of 1994 (P.L. 103-226) 
was enacted March 30, 1994. The Act established FTE limitations 
(``ceilings'') for Executive Branch civilian employees through 1999. The 
starting point used to calculate FTE reductions required by the FWRA is 
called the 1993 base--the estimate of FTEs for 1993 made in January of 
that year. Between base 1993 and FY 1999, the Act requires a cut of 
272,900 FTEs. The 1999 budget continues the implementation of the 
reductions pursuant to the Act. The limitations established by the Act, 
as well as the reductions to date, are as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                          Cumulative   Reduction
                                                                     FWRA      Civilian    reduction  as percent
                              Year                                  ceiling      FTEs      from 1993  of 272,900
                                                                                             base         cut   
----------------------------------------------------------------------------------------------------------------
1993 Base.......................................................   2,155,200                                    
1994............................................................   2,084,600   2,052,700    -102,500         38%
1995............................................................   2,043,300   1,970,200    -185,000         68%
1996............................................................   2,003,300   1,891,700    -263,500         97%
1997............................................................   1,963,300   1,835,400    -320,500        117%
1998 est........................................................   1,922,300   1,837,400    -317,800        116%
1999 est........................................................   1,882,300   1,824,200    -331,100        121%
----------------------------------------------------------------------------------------------------------------

  Table 10-1 provides agency-wide totals from the 1993 base through 
1999.
   Allocations of FTE resources by agency are made based upon 
Presidential priorities and other factors. Thus, while most of the 
agencies in Table 10-1 show FTE reductions between 1993 and 1999, 
several agencies, such as the Department of Commerce and the Department 
of Justice, show an increase in FTEs.

                     Total Federal Employment Levels

   The tables that follow show total Federal employment in all branches 
of Government, including the U.S. Postal Service, Postal Rate 
Commission, and active duty uniformed military personnel. Table 10-2 
displays total Federal employment as measured by actual positions 
filled, i.e., the total number of employees, whether full-time, part-
time or intermittent, at the end of the fiscal year. Table 10-3 shows 
total Federal employment as measured on an FTE basis.

                   Personnel Compensation and Benefits

   Table 10-4 displays personnel compensation and benefits for all 
branches of Government, as well as for military personnel.
   Direct compensation of the Federal work force includes base pay and 
premium pay, such as overtime. In addition, it includes other cash 
components, such as geographic pay differentials (i.e., locality pay, 
and special pay adjustments for law enforcement officers), recruitment 
and relocation bonuses, retention allowances, performance awards, and 
cost-of-living and overseas allowances.
   In the case of military personnel, compensation includes basic pay, 
special and incentive pays (including enlistment and reenlistment 
bonuses), and allowances for clothing, housing, and subsistence.
   Related compensation in the form of personnel benefits for current 
employees consists of the cost to Government agencies (as an employer) 
primarily for health insurance, life insurance, Social Security (old 
age, survivors, disability, and health insurance) and contributions to 
the retirement funds to finance future retirement benefits. Compensation 
for former personnel includes outlays for retirement pay benefits, and 
the Government's share of the cost of health and life insurance.

[[Page 228]]

            Table 10-1.  FEDERAL EMPLOYMENT IN THE EXECUTIVE BRANCH                                                
    (Civilian employment as measured by Full-Time Equivalents, in thousands)                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     Actual                            Estimate        Change: 1993 base
                                                        1993   ----------------------------------------------------------------------       to 1999     
                       Agency                           Base                                                                         -------------------
                                                                  1993      1994      1995      1996      1997      1998      1999      FTE's    Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cabinet agencies:                                                                                                                                       
  Agriculture \1\...................................     115.6     114.4     109.8     103.8     100.7      98.5      99.0      97.1     -18.6    -16.1%
  Commerce..........................................      36.7      36.1      36.0      35.3      33.8      32.6      38.3      44.2       7.4     20.2%
  Defense-military functions........................     931.3     931.8     868.3     821.7     778.9     745.8     731.0     708.5    -222.8    -23.9%
  Education.........................................       5.0       4.9       4.8       4.8       4.7       4.5       4.6       4.6      -0.4     -8.0%
  Energy............................................      20.6      20.3      19.8      19.7      19.1      17.3      17.1      16.6      -4.0    -19.3%
  Health and Human Services \1\.....................      65.0      66.1      62.9      59.3      57.2      57.6      58.5      59.8      -5.1     -7.9%
  Social Security Administration....................      65.4      64.8      64.5      64.6      64.0      65.2      65.7      63.9      -1.5     -2.3%
  Housing and Urban Development.....................      13.6      13.3      13.1      12.1      11.4      11.0      10.4      10.0      -3.6    -26.7%
  Interior..........................................      79.3      78.1      76.3      72.0      66.7      65.7      67.6      69.1     -10.2    -12.9%
  Justice...........................................      99.4      95.4      95.3      97.9     103.8     111.0     119.8     125.4      26.0     26.1%
  Labor.............................................      18.3      18.0      17.5      16.8      16.0      15.9      16.7      17.0      -1.3     -7.2%
  State.............................................      26.0      25.6      25.2      23.9      22.9      22.4      22.9      23.2      -2.8    -10.9%
  Transportation....................................      70.3      69.1      66.4      63.2      62.4      62.5      64.9      65.9      -4.5     -6.3%
  Treasury..........................................     166.1     161.1     157.3     157.5     151.1     145.5     146.0     147.9     -18.2    -10.9%
  Veterans Affairs \1\..............................     232.4     234.2     233.1     228.5     221.9     211.5     206.0     203.9     -28.5    -12.3%
                                                                                                                                                        
Other agencies--excluding Postal Service:                                                                                                               
  Agency for International Development\1\...........       4.4       4.1       3.9       3.6       3.4       2.8       2.9       2.8      -1.5    -35.1%
  Corps of Engineers................................      29.2      28.4      27.9      27.7      27.1      26.0      26.1      25.6      -3.6    -12.3%
  Environmental Protection Agency...................      18.6      17.9      17.6      17.5      17.2      17.0      18.0      18.4      -0.2     -1.1%
  Equal Employment Opportunity Commission...........       2.9       2.8       2.8       2.8       2.7       2.6       2.6       2.7      -0.1     -3.8%
  Federal Emergency Management Agency...............       2.7       4.0       4.9       4.6       4.7       5.1       4.7       4.7       1.9     70.2%
  FDIC/RTC..........................................      21.6      21.9      20.0      15.7      11.8       8.7       8.5       7.7     -13.9    -64.3%
  General Services Administration...................      20.6      20.2      19.5      17.0      15.7      14.5      14.1      14.0      -6.6    -32.2%
  National Aeronautics and Space Administration.....      25.7      24.9      23.9      22.4      21.1      20.1      19.6      18.7      -7.0    -27.3%
  National Archives and Records Administration......       2.8       2.6       2.6       2.4       2.5       2.5       2.5       2.6      -0.2     -6.5%
  National Labor Relations Board....................       2.1       2.1       2.1       2.0       1.9       1.9       1.9       1.9      -0.2    -10.7%
  National Science Foundation.......................       1.3       1.2       1.2       1.2       1.3       1.2       1.2       1.2      -0.1    -10.7%
  Nuclear Regulatory Commission.....................       3.4       3.4       3.3       3.2       3.1       3.0       3.0       3.0      -0.4    -13.0%
  Office of Personnel Management....................       6.2       5.9       5.3       4.2       3.4       2.8       3.0       3.0      -3.2    -51.6%
  Panama Canal Commission...........................       8.7       8.5       8.5       8.8       9.0       9.5      10.0      10.0       1.3     14.8%
  Peace Corps.......................................       1.3       1.2       1.2       1.2       1.1       1.1       1.1       1.3       0.0      1.7%
  Railroad Retirement Board.........................       2.0       1.8       1.7       1.6       1.5       1.4       1.3       1.2      -0.6    -34.8%
  Securities and Exchange Commission................       2.7       2.7       2.7       2.7       2.8       2.8       2.8       2.8       0.1      3.2%
  Small Business Administration.....................       4.0       5.6       6.3       5.7       4.7       4.5       4.7       4.9       0.9     22.8%
  Smithsonian Institution...........................       5.9       5.5       5.4       5.3       5.1       5.0       5.2       5.3      -0.6     -9.6%
  Tennessee Valley Authority........................      19.1      17.3      18.6      16.6      16.0      14.9      14.4      13.8      -5.4    -28.1%
  United States Information Agency..................       8.7       8.3       8.1       7.7       7.0       6.6       6.7       6.7      -1.9    -22.4%
  All other small agencies..........................      16.1      15.4      15.0      15.1      14.1      13.9      14.6      14.7      -1.4     -9.0%
                                                     ---------------------------------------------------------------------------------------------------
Total, Executive Branch civilian employment.........   2,155.2   2,138.8   2,052.7   1,970.2   1,891.7   1,834.7   1,837.4   1,824.2    -331.1    -15.4%
  Reduction from 1993 Base..........................  ........     -16.4    -102.5    -185.0    -263.5    -320.5    -317.8    -331.1  ........  ........
Subtotal, Defense...................................     931.3     931.8     868.3     821.7     778.9     745.8     731.0     708.5    -222.8    -23.9%
Subtotal, Non-Defense...............................   1,223.9   1,207.1   1,184.4   1,148.4   1,112.8   1,088.9   1,106.4   1,115.6    -108.3     -8.8%
                                                     ===================================================================================================
Status of Federal Civilian Employment Relative to                                                                                                       
 the Federal Workforce Restructuring Act \2\                                                                                                            
  Total, Executive Branch Employment................  ........  ........   2,052.7   1,970.2   1,891.7   1,834.7   1,837.4   1,824.2  ........  ........
  Less: FTEs exempt from FWRA.......................  ........  ........       5.7       5.7       7.6       7.4       5.4       5.5  ........  ........
  Total, Executive Branch subject to FWRA Ceiling...  ........  ........   2,047.0   1,964.4   1,884.1   1,827.3   1,832.0   1,818.7  ........  ........
  FWRA Ceiling......................................  ........  ........   2,084.6   2,043.3   2,003.3   1,963.3   1,922.3   1,882.3  ........  ........
  Executive Branch Employment Relative to FWRA                                                                                                          
   Ceiling..........................................  ........  ........     -37.6     -78.9    -119.2    -136.1     -90.3     -63.6  ........  ........
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The Departments of Agriculture, Health and Human Services, Veterans Affairs, and the Agency for International Development have components that are  
  exempt from FTE controls. In 1999, Agriculture has 2,128 exemptions; HHS has 342 exemptions; Veterans Affairs has 3,020 exemptions and AID has 10     
  exemptions.                                                                                                                                           
                                                                                                                                                        
\2\ FTE liminations are set for the Executive Branch in the Federal Workforce Restructuring Act of 1994 (P.L. 103-226) from 1994-99.                    


[[Page 229]]

                   Table 10-2.  TOTAL FEDERAL EMPLOYMENT                                     
                  (As measured by total positions filled)                                    
----------------------------------------------------------------------------------------------------------------
                                                            Actual as of September 30       Change: 1995 to 1997
                     Description                      ----------------------------------------------------------
                                                          1995        1996        1997      Positions   Percent 
----------------------------------------------------------------------------------------------------------------
Executive branch civilian employment:                                                                           
  All agencies except Postal Service and Postal Rate                                                            
   Commission:                                                                                                  
    Full-time permanent..............................   1,768,006   1,707,974   1,651,599    -116,447      -6.6%
    Other than full-time permanent \1\...............     244,463     225,957     220,232     -24,231      -9.9%
                                                      ----------------------------------------------------------
      Subtotal.......................................   2,012,469   1,933,931   1,871,791    -140,678      -7.0%
                                                      ==========================================================
Postal Service: \2\                                                                                             
  Full-time permanent................................     647,269     652,855     648,684       1,415       0.2%
  Other than full-time permanent.....................     198,179     199,478     204,666       6,487       3.3%
                                                      ----------------------------------------------------------
    Subtotal.........................................     845,448     852,333     853,350       7,902       0.9%
                                                      ==========================================================
  Subtotal, Executive branch civilian employment.....   2,857,917   2,786,264   2,725,141    -132,776      -4.6%
                                                      ==========================================================
Military personnel on active duty: \3\                                                                          
  Department of Defense..............................   1,518,224   1,471,722   1,438,562     -79,662      -5.2%
  Department of Transportation (Coast Guard).........      36,731      35,243      35,137      -1,594      -4.3%
                                                      ----------------------------------------------------------
    Subtotal, military personnel.....................   1,554,955   1,506,965   1,473,699     -81,256      -5.2%
                                                      ==========================================================
      Subtotal, Executive Branch.....................   4,412,872   4,293,229   4,198,840    -214,032      -4.9%
                                                      ==========================================================
Legislative branch:                                                                                             
  Full-time permanent................................      14,603      13,288      12,696      -1,907     -13.1%
  Other than full-time permanent.....................      18,764      18,259      18,659        -105      -0.6%
                                                      ----------------------------------------------------------
    Subtotal, Legislative Branch.....................      33,367      31,547      31,355      -2,012      -6.0%
                                                      ----------------------------------------------------------
Judicial Branch:                                                                                                
  Full-time permanent................................      26,555      26,879      27,567       1,012       3.8%
  Other than full-time permanent.....................       2,438       2,702       3,074         636      26.1%
                                                      ----------------------------------------------------------
    Subtotal, Judicial Branch........................      28,993      29,581      30,641       1,648       5.7%
                                                      ==========================================================
Grand total..........................................   4,475,322   4,354,357   4,260,836    -214,396      -4.8%
                                                      ==========================================================
                                                                                                                
                       ADDENDUM                                                                                 
                                                                                                                
Executive branch civilian personnel (excluding Postal                                                           
 Service):                                                                                                      
  DOD-Military functions \4\                              802,141     768,098     723,032     -79,109      -9.9%
  All other executive branch.........................   1,210,328   1,165,833   1,148,759     -61,569      -5.1%
                                                      ----------------------------------------------------------
    Total \5\........................................   2,012,469   1,933,931   1,871,791    -140,678     -7.0% 
----------------------------------------------------------------------------------------------------------------
\1\ Includes Summer Aides, Stay-in-school, Junior Fellowship, Worker-Trainee Opportunity Program, formerly      
  exempt from employment controls.                                                                              
                                                                                                                
 \2\ Includes Postal Rate Commission.                                                                           
                                                                                                                
\3\ Excludes reserve components.                                                                                
                                                                                                                
\4\ Excludes Defense Intelligence Agency.                                                                       
                                                                                                                
\5\ Includes disadvantaged youth programs.                                                                      


[[Page 230]]


                      Table 10-3.  TOTAL FEDERAL EMPLOYMENT                                                         
                      (As measured by Full-Time Equivalents)                                                         
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Estimate         Change: 1997 to 1999
                                          Description                                              1997    ---------------------------------------------
                                                                                                  actual       1998        1999       FTE's     Percent 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Executive branch civilian personnel:                                                                                                                    
  All agencies except Postal Service and Defense..............................................   1,088,945   1,106,409   1,115,611     26,666       2.4%
  Defense-Military functions (civilians)......................................................     745,750     731,025     708,542    -37,208      -5.0%
                                                                                               ---------------------------------------------------------
    Subtotal, excluding Postal Service........................................................   1,834,695   1,837,434   1,824,153    -10,542      -0.6%
  Postal Service \1\..........................................................................     826,178     837,754     844,297     18,199       2.2%
                                                                                               ---------------------------------------------------------
    Subtotal, Executive Branch civilian personnel.............................................   2,660,873   2,675,188   2,668,450      7,577       0.3%
                                                                                               =========================================================
Executive branch uniformed personnel: \2\                                                                                                               
  Department of Defense.......................................................................   1,454,854   1,427,233   1,402,846    -52,008      -3.6%
  Department of Transportation (Coast Guard)..................................................      34,988      35,455      35,538        550       1.6%
                                                                                               ---------------------------------------------------------
    Subtotal, uniformed military personnel....................................................   1,489,842   1,462,688   1,438,384    -51,458      -3.5%
                                                                                               ---------------------------------------------------------
    Subtotal, Executive Branch................................................................   4,150,713   4,137,876   4,106,834    -43,879      -1.1%
                                                                                               =========================================================
Legislative Branch: \3\ Total FTE.............................................................      31,420      31,356      31,492         72       0.2%
                                                                                               =========================================================
Judicial branch: Total FTE....................................................................      29,001      32,452      33,459      4,458      15.4%
                                                                                               =========================================================
    Grand total...............................................................................   4,211,136   4,201,684   4,171,785    -39,351     -0.9% 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Includes Postal Rate Commission.                                                                                                                    
                                                                                                                                                        
\2\ Military personnel on active duty. Excludes reserve                                                                                                 
                                                                                                                                                        
\3\ Actual 1997 FTE data not available for legislative branch.                                                                                          


[[Page 231]]


                 TABLE 10-4.PERSONNEL COMPENSATION AND BENEFITS                                                     
                              (In millions of dollars)                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Estimate                Change: 1997 to 1999   
                                 Description                                    1997 actual  -----------------------------------------------------------
                                                                                                   1998            1999          Dollars       Percent  
--------------------------------------------------------------------------------------------------------------------------------------------------------
Civilian personnel costs:                                                                                                                               
  Executive Branch (excluding Postal Service):                                                                                                          
    Direct compensation:                                                                                                                                
      DOD--military functions...............................................      31,705          32,578          32,256           551             1.7% 
      All other executive branch............................................      53,307          55,757          57,728         4,421             8.3% 
                                                                             ---------------------------------------------------------------------------
        Subtotal, direct compensation.......................................      85,012          88,335          89,984         4,972             5.8% 
                                                                                                                                                        
    Personnel benefits:                                                                                                                                 
      DOD--military functions...............................................       7,017           6,869           6,842          -175            -2.5% 
      All other executive branch \1\........................................      20,603          21,688          22,545         1,942             9.4% 
                                                                             ---------------------------------------------------------------------------
        Subtotal, personnel benefits........................................      27,620          28,557          29,387         1,767             6.4% 
                                                                             ---------------------------------------------------------------------------
          Subtotal, executive branch........................................     112,632         116,892         119,371         6,739             6.0% 
                                                                             ===========================================================================
  Postal Service:                                                                                                                                       
    Direct compensation.....................................................      33,965          34,910          36,359         2,394             7.0% 
    Personnel benefits......................................................       8,978           9,601           9,922           944            10.5% 
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................      42,943          44,511          46,281         3,338             7.8% 
                                                                             ===========================================================================
  Legislative Branch: \2\                                                                                                                               
    Direct compensation.....................................................       1,244           1,273           1,350           106             8.5% 
    Personnel benefits......................................................         295             281             303             8             2.7% 
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................       1,539           1,554           1,653           114             7.4% 
  Judicial Branch:                                                                                                                                      
    Direct compensation.....................................................       1,507           1,773           1,875           368            24.4% 
    Personnel benefits......................................................         371             424             455            84            22.6% 
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................       1,878           2,197           2,330           452            24.1% 
                                                                             ---------------------------------------------------------------------------
      Total, civilian personnel costs.......................................     158,992         165,154         169,635        10,643             6.7% 
                                                                             ===========================================================================
Military personnel costs:                                                                                                                               
  DOD--Military Functions:                                                                                                                              
    Direct compensation.....................................................      49,304          50,360          50,951         1,647             3.3% 
    Personnel benefits......................................................      18,151          16,843          16,949        -1,202            -6.6% 
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................      67,455          67,203          67,900           445             0.7% 
                                                                                                                                                        
All other executive branch, uniformed personnel:                                                                                                        
  Direct compensation.......................................................       1,146           1,169           1,220            74             6.5% 
  Personnel benefits........................................................         111             117             121            10             9.0% 
                                                                             ---------------------------------------------------------------------------
      Subtotal..............................................................       1,257           1,286           1,341            84             6.7% 
                                                                             ---------------------------------------------------------------------------
    Total, military personnel costs \3\ ....................................      68,712          68,489          69,241           529             0.8% 
                                                                             ===========================================================================
Grand total, personnel costs................................................     227,704         233,643         238,876        11,172             4.9% 
                                                                             ===========================================================================
                                  ADDENDUM                                                                                                              
                                                                                                                                                        
Former Civilian Personnel:                                                                                                                              
   Retired pay for former personnel.........................................      42,366          44,126          46,052         3,686             8.7% 
    Government payment for Annuitants:                                                                                                                  
      Employee health benefits..............................................       3,934           4,147           4,632           698            17.7% 
       Employee life insurance..............................................          28              32              35             7            25.0% 
                                                                             ---------------------------------------------------------------------------
    Total Former Civilian Personnel.........................................      46,328          48,305          50,719         4,391             9.5% 
                                                                                                                                                        
Former Military personnel:                                                                                                                              
  Retired pay for former personnel..........................................         559             595             625            66            11.8% 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ In addition to the employing agency's contribution to the costs of life and health insurance, retirement and Medicare Hospital insurance, this      
  amount includes transfers from general revenues to amortize the effects of general pay increases on Federal retirement systems for employees in the   
  Legislative and Judicial Branches as well as employees (non-Postal) in the Executive Branch and to amortize supplemental liabilities under FERS. The  
  transfers amounted to $8,085 million in 1997 and are estimated to be $8,367 million in 1998 and $8,682 million in 1999.                               
                                                                                                                                                        
\2\ Excludes members and officers of the Senate.                                                                                                        
                                                                                                                                                        
\3\ Excludes reserve components.