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



[[Page 247]]

 
                 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, 
called the 1993 base, is the estimate of FTEs for 1993 made in January 
of that year. Between the 1993 base and FY 1999, the Act requires a cut 
of 272,900 FTEs. The 2000 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:

 
----------------------------------------------------------------------------------------------------------------
                                                                                                       Reduction
                                                                     FWRA      Civilian   Cumulative  as percent
                              Year                                  Ceiling      FTEs      reduction  of 272,900
                                                                                           From 1993      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   1,834,700    -320,500        117%
1998............................................................   1,922,300   1,790,200    -365,000        134%
1999 est........................................................   1,882,300   1,801,600    -353,600        130%
----------------------------------------------------------------------------------------------------------------

  Table 10-1 provides agency-wide totals from the 1993 base through 
2000.
  Allocations of FTE resources by agency are made based upon 
Presidential priorities and other factors. While most of the agencies in 
Table 10-1 show FTE reductions between 1993 and 2000, several agencies, 
such as the Department of Commerce and the Department of Justice, show 
an increase in FTEs.

 Recent Trends in Civilian Employment Estimates in the Executive Branch

  Each year the Budget reports actual FTEs in the prior year column, and 
estimates of FTEs in the current and budget years. In four of the five 
years since the FWRA was enacted, the current year FTE estimates for 
nearly all agencies in the Budget have been over-stated when compared to 
the actual published in the following year's Budget. The table below 
shows this trend:

 
------------------------------------------------------------------------
            Year               Estimate     Actual      Over-Statement
------------------------------------------------------------------------
1994........................     2,042.1     2,052.7     -10,700 (-0.5%)
1995........................     2,017.8     1,970.2     +47,600 (+2.4%)
1996........................     1,940.8     1,891.7     +49,100 (+2.5%)
1997........................     1,881.3     1,834.7     +46,600 (+2.5%)
1998........................     1,837.4     1,790.2     +47,200 (+2.6%)
------------------------------------------------------------------------

                     Total Federal Employment Levels

  The tables that follow show total Federal employment in all branches 
of Government, as well as 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.

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  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.

                                                 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 2000
                  Agency                      Base                                                                                   -------------------
                                                        1993      1994      1995      1996      1997      1998      1999      2000      FTE's    Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cabinet agencies:
  Agriculture \1\.........................     115.6     114.4     109.8     103.8     100.7      98.5      96.4      98.0      97.6     -18.0    -15.6%
  Commerce................................      36.7      36.1      36.0      35.3      33.8      32.6      35.7      47.5      92.9      56.1    152.9%
  Defense-military functions..............     931.3     931.8     868.3     821.7     778.9     745.8     707.2     686.5     662.9    -268.4    -28.8%
  Education...............................       5.0       4.9       4.8       4.8       4.7       4.5       4.5       4.7       4.7      -0.3     -5.7%
  Energy..................................      20.6      20.3      19.8      19.7      19.1      17.3      16.3      16.5      16.2      -4.4    -21.5%
  Health and Human Services \1\...........      65.0      66.1      62.9      59.3      57.2      57.6      57.9      60.5      62.0      -2.9     -4.5%
  Social Security Administration..........      65.4      64.8      64.5      64.6      64.0      65.2      64.0      63.8      63.6      -1.8     -2.8%
  Housing and Urban Development...........      13.6      13.3      13.1      12.1      11.4      11.0       9.8      10.6      10.6      -3.0    -22.3%
  Interior................................      79.3      78.1      76.3      72.0      66.7      65.7      66.5      68.3      69.9      -9.4    -11.8%
  Justice.................................      99.4      95.4      95.3      97.9     103.8     111.0     117.3     124.1     128.7      29.3     29.5%
  Labor...................................      18.3      18.0      17.5      16.8      16.0      15.9      16.3      16.9      17.4      -0.9     -5.1%
  State...................................      35.0      34.2      33.5      31.8      30.2      29.2      26.4      26.9      27.6      -7.4    -21.2%
  Transportation..........................      70.3      69.1      66.4      63.2      62.4      62.5      63.4      65.0      65.8      -4.6     -6.5%
  Treasury................................     166.1     161.1     157.3     157.5     151.1     145.5     142.1     145.4     146.1     -20.0    -12.0%
  Veterans Affairs \1\....................     232.4     234.2     233.1     228.5     221.9     211.5     207.1     205.4     197.9     -34.5    -14.8%
 
Other agencies--excluding Postal Service:
  Agency for International Development \1\       4.4       4.1       3.9       3.6       3.4       2.8       2.7       2.6       2.6      -1.8    -41.2%
  Corps of Engineers......................      29.2      28.4      27.9      27.7      27.1      26.0      24.8      25.2      24.7      -4.5    -15.3%
  Environmental Protection Agency.........      18.6      17.9      17.6      17.5      17.2      17.0      17.7      18.4      18.4      -0.2     -0.9%
  Equal Employment Opportunity Commission.       2.9       2.8       2.8       2.8       2.7       2.6       2.5       2.8       2.9       0.1      3.2%
  Federal Emergency Management Agency.....       2.7       4.0       4.9       4.6       4.7       5.1       4.6       4.6       4.7       2.0     72.4%
  FDIC/RTC................................      21.6      21.9      20.0      15.7      11.8       8.7       7.9       7.3       6.9     -14.6    -67.9%
  General Services Administration.........      20.6      20.2      19.5      17.0      15.7      14.5      14.1      14.2      14.2      -6.5    -31.5%
  National Aeronautics and Space
   Administration.........................      25.7      24.9      23.9      22.4      21.1      20.1      19.1      18.8      18.2      -7.6    -29.4%
  National Archives and Records
   Administration.........................       2.8       2.6       2.6       2.4       2.5       2.5       2.4       2.6       2.6      -0.1     -3.7%
  National Labor Relations Board..........       2.1       2.1       2.1       2.0       1.9       1.9       1.9       1.9       2.0      -0.1     -6.7%
  National Science Foundation.............       1.3       1.2       1.2       1.2       1.3       1.2       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       2.9       2.8      -0.6    -17.6%
  Office of Personnel Management..........       6.2       5.9       5.3       4.2       3.4       2.8       2.8       3.0       3.0      -3.2    -51.9%
  Panama Canal Commission.................       8.7       8.5       8.5       8.8       9.0       9.5       9.6      10.2       2.5      -6.2    -71.0%
  Peace Corps.............................       1.3       1.2       1.2       1.2       1.1       1.1       1.1       1.2       1.2      -0.1     -4.8%
  Railroad Retirement Board...............       1.8       1.8       1.7       1.6       1.5       1.4       1.3       1.2       1.2      -0.7    -37.2%
  Securities and Exchange Commission......       2.7       2.7       2.7       2.7       2.8       2.8       2.8       2.8       2.9       0.2      5.8%
  Small Business Administration...........       4.0       5.6       6.3       5.7       4.7       4.5       4.4       4.6       4.6       0.6     15.4%
  Smithsonian Institution.................       5.9       5.5       5.4       5.3       5.1       5.0       5.0       5.2       5.2      -0.6    -10.9%
  Tennessee Valley Authority..............      19.1      17.3      18.6      16.6      16.0      14.9      14.4      13.9      13.7      -5.4    -28.4%
  All other small agencies................      15.9      15.2      14.7      14.9      13.9      13.6      16.0      17.0      17.3       1.5      9.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total, Executive Branch civilian
 employment...............................   2,155.2   2,138.8   2,052.7   1,970.2   1,891.7   1,834.7   1,790.2   1,801.6   1,816.8    -338.4    -15.7%
  Reduction from 1993 Base................  ........     -16.4    -102.5    -185.0    -263.5    -320.5    -365.0    -353.6    -338.4  ........  ........
Subtotal, Defense.........................     931.3     931.8     868.3     821.7     778.9     745.8     707.2     686.5     662.9    -268.4    -28.8%
Subtotal, Non-Defense.....................   1,223.9   1,207.1   1,184.4   1,148.4   1,112.8   1,088.9   1,083.0   1,115.2   1,153.9     -70.0     -5.7%
-------------------------------------------=============================================================================================================
Status of Federal Civilian Employment
 Relative to the Federal Workforce
 Restructuring Act \2\
  Total, Executive Branch Employment......      NA        NA     2,052.7   1,970.2   1,891.7   1,834.7   1,790.2   1,801.6      NA        NA          NA
  Less: FTEs exempt from FWRA.............      NA        NA         5.7       5.7       7.6       7.4       5.2       5.5      NA        NA          NA
  Total, Executive Branch subject to FWRA
   Ceiling................................      NA        NA     2,047.0   1,964.4   1,884.1   1,827.3   1,785.0   1,796.1      NA        NA          NA
  FWRA Ceiling............................      NA        NA     2,084.6   2,043.3   2,003.3   1,963.3   1,922.3   1,882.3      NA        NA          NA
  Executive Branch Employment Relative to
   FWRA Ceiling...........................      NA        NA       -37.6     -78.9    -119.2    -136.1    -137.3     -86.2      NA        NA          NA
--------------------------------------------------------------------------------------------------------------------------------------------------------
\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 358 exemptions; Veterans Affairs has 3,000 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.


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                                      Table 10-2.  TOTAL FEDERAL EMPLOYMENT
                                     (As measured by total positions filled)
----------------------------------------------------------------------------------------------------------------
                                                            Actual as of September 30       Change: 1996 to 1998
                     Description                      ----------------------------------------------------------
                                                          1996        1997        1998      Positions   Percent
----------------------------------------------------------------------------------------------------------------
Executive branch civilian employment:
  All agencies except Postal Service and Postal Rate
   Commission:
    Full-time permanent..............................   1,707,974   1,651,559   1,624,152     -83,807      -4.9%
    Other than full-time permanent \1\...............     225,957     220,232     231,644       5,687       2.5%
----------------------------------------------------------------------------------------------------------------
      Subtotal.......................................   1,933,931   1,871,791   1,855,796     -78,120      -4.0%
------------------------------------------------------==========================================================
Postal Service: \2\
  Full-time permanent................................     652,855     648,684     660,987       8,132       1.2%
  Other than full-time permanent.....................     199,478     204,666     210,533      11,055       5.5%
----------------------------------------------------------------------------------------------------------------
    Subtotal.........................................     852,333     853,350     871,520      19,187       2.3%
------------------------------------------------------==========================================================
  Subtotal, Executive branch civilian employment.....   2,786,264   2,725,141   2,727,331     -58,933      -2.1%
------------------------------------------------------==========================================================
Military personnel on active duty: \3\
  Department of Defense..............................   1,471,722   1,438,562   1,406,830     -64,892      -4.4%
  Department of Transportation (Coast Guard).........      35,243      35,137      35,459         216       0.6%
----------------------------------------------------------------------------------------------------------------
    Subtotal, military personnel.....................   1,506,965   1,473,699   1,442,289     -64,676      -4.3%
------------------------------------------------------==========================================================
      Subtotal, Executive Branch.....................   4,293,229   4,198,840   4,169,605    -123,609      -2.9%
------------------------------------------------------==========================================================
Legislative branch:
  Full-time permanent................................      13,288      12,696      12,399        -889      -6.7%
  Other than full-time permanent.....................      18,259      18,659      18,075        -184      -1.0%
----------------------------------------------------------------------------------------------------------------
    Subtotal, Legislative Branch.....................      31,547      31,355      30,474      -1,073      -3.4%
----------------------------------------------------------------------------------------------------------------
Judicial Branch:
  Full-time permanent................................      26,879      27,567      28,487       1,608       6.0%
  Other than full-time permanent.....................       2,702       3,074       3,255         553      20.5%
----------------------------------------------------------------------------------------------------------------
    Subtotal, Judicial Branch........................      29,581      30,641      31,742       2,161       7.3%
------------------------------------------------------==========================================================
Grand total..........................................   4,354,357   4,260,836   4,231,821    -122,521      -2.8%
------------------------------------------------------==========================================================
 
                       ADDENDUM
 
Executive branch civilian personnel (excluding Postal
 Service):
  DOD-Military functions \4\.........................     768,098     723,032     692,552     -75,546      -9.8%
  All other executive branch.........................   1,165,833   1,148,759   1,163,244      -2,574      -0.2%
----------------------------------------------------------------------------------------------------------------
    Total \5\........................................   1,933,931   1,871,791   1,855,796     -78,120      -4.0%
----------------------------------------------------------------------------------------------------------------
\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.


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                                                          Table 10-3.  TOTAL FEDERAL EMPLOYMENT
                                                         (As measured by Full-Time Equivalents)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Estimate         Change: 1998 to 2000
                                          Description                                              1998    ---------------------------------------------
                                                                                                  actual       1999        2000       FTE's     Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Executive branch civilian personnel:
  All agencies except Postal Service and Defense..............................................   1,082,969   1,115,150   1,153,910     70,941       6.6%
  Defense-Military functions (civilians)......................................................     707,242     686,458     662,928    -44,314      -6.3%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Subtotal, excluding Postal Service........................................................   1,790,211   1,801,608   1,816,838     26,627       1.5%
  Postal Service \1\..........................................................................     837,399     842,422     847,259      9,860       1.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Subtotal, Executive Branch civilian personnel.............................................   2,627,610   2,644,030   2,664,097     36,487       1.4%
-----------------------------------------------------------------------------------------------=========================================================
Executive branch uniformed personnel: \2\
  Department of Defense.......................................................................   1,422,467   1,391,916   1,390,787    -31,680      -2.2%
  Department of Transportation (Coast Guard)..................................................      35,130      35,183      35,828        698       2.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Subtotal, uniformed military personnel....................................................   1,457,597   1,427,099   1,426,615    -30,982      -2.1%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Subtotal, Executive Branch................................................................   4,085,207   4,071,129   4,090,712      5,505       0.1%
-----------------------------------------------------------------------------------------------=========================================================
Legislative Branch: \3\ Total FTE.............................................................      30,415      30,755      30,900        485       1.6%
-----------------------------------------------------------------------------------------------=========================================================
Judicial branch: Total FTE....................................................................      30,192      31,547      31,970      1,778       5.9%
-----------------------------------------------------------------------------------------------=========================================================
    Grand total...............................................................................   4,145,814   4,133,431   4,153,582      7,768       0.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Includes Postal Rate Commission.
 
\2\ Military personnel on active duty. Excludes reserve components. Data shown for Department of Defense are average strengths, not FTEs.
 
\3\ Actual 1998 FTE data not available for legislative branch.


[[Page 251]]


                                                    TABLE 10-4.   PERSONNEL COMPENSATION AND BENEFITS
                                                                (In millions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         Estimate                Change: 1998 to 2000
                                 Description                                    1998 actual  -----------------------------------------------------------
                                                                                                   1999            2000          Dollars       Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Civilian personnel costs:
  Executive Branch (excluding Postal Service):
    Direct compensation:
      DOD--military functions...............................................      31,766          32,088          31,980           214             0.7%
      All other executive branch............................................      54,893          58,674          61,840         6,947            12.7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Subtotal, direct compensation.......................................      86,659          90,762          93,820         7,161             8.3%
 
    Personnel benefits:
      DOD--military functions...............................................       6,963           6,761           6,877           -86            -1.2%
      All other executive branch \1\........................................      21,760          23,058          24,316         2,556            11.7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Subtotal, personnel benefits........................................      28,723          29,819          31,193         2,470             8.6%
--------------------------------------------------------------------------------------------------------------------------------------------------------
          Subtotal, executive branch........................................     115,382         120,581         125,013         9,631             8.3%
-----------------------------------------------------------------------------===========================================================================
  Postal Service:
    Direct compensation.....................................................      34,704          35,640          36,744         2,040             5.9%
    Personnel benefits......................................................       9,648           9,734          10,020           372             3.9%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Subtotal..............................................................      44,352          45,374          46,764         2,412             5.4%
-----------------------------------------------------------------------------===========================================================================
  Legislative Branch: \2\
    Direct compensation.....................................................       1,273           1,356           1,434           161            12.6%
    Personnel benefits......................................................         275             307             313            38            13.8%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Subtotal..............................................................       1,548           1,663           1,747           199            12.9%
  Judicial Branch:
    Direct compensation.....................................................       1,625           1,776           1,910           285            17.5%
    Personnel benefits......................................................         406             450             492            86            21.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Subtotal..............................................................       2,031           2,226           2,402           371            18.3%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Total, civilian personnel costs.......................................     163,313         169,844         175,926        12,613             7.7%
-----------------------------------------------------------------------------===========================================================================
Military personnel costs:
  DOD--Military Functions:
    Direct compensation.....................................................      48,602          49,524          51,012         2,410             5.0%
    Personnel benefits......................................................      17,674          17,874          19,136           548             3.1%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Subtotal..............................................................      66,276          67,398          70,148         2,958             4.5%
 
All other executive branch, uniformed personnel:
  Direct compensation.......................................................       1,172           1,233           1,297           125            10.7%
  Personnel benefits........................................................         115             122             127            12            10.4%
--------------------------------------------------------------------------------------------------------------------------------------------------------
      Subtotal..............................................................       1,287           1,355           1,424           137            10.6%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total, military personnel costs \3\.....................................      67,563          68,753          71,572         3,095             4.6%
-----------------------------------------------------------------------------===========================================================================
Grand total, personnel costs................................................     230,876         238,597         247,498        15,708             6.8%
-----------------------------------------------------------------------------===========================================================================
                                  ADDENDUM
 
Former Civilian Personnel:
   Retired pay for former personnel.........................................      43,893          45,674          47,686         3,793             8.6%
    Government payment for Annuitants:
      Employee health benefits..............................................       4,115           4,654           5,105           990            24.1%
       Employee life insurance..............................................          30              35              36             6            20.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total Former Civilian Personnel.........................................      48,038          50,363          52,827         4,789            10.0%
 
Former Military personnel:
  Retired pay for former personnel..........................................         584             615             659            75            12.8%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\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 8,381 million in 1998 and are estimated to be $8,703 million in 1999 and $9,121 million in 2000.
\2\ Excludes members and officers of the Senate.
\3\ Excludes reserve components.