[Analytical Perspectives]
[Special Analyses and Presentations]
[10. Federal Employment and Compensation]
[From the U.S. Government Publishing Office, www.gpo.gov]
[[Page 257]]
10. FEDERAL EMPLOYMENT AND COMPENSATION
This section provides information on civilian employment policy,
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 required a cut
of 272,900 FTEs. The actual cut exceeded 375,000 FTEs. The limitations
established by the FWRA, 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............................................................ 1,882,300 1,778,400 -376,800 138%
----------------------------------------------------------------------------------------------------------------
Table 10-1 provides agency-wide totals from the 1993 base through
2001.
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 2001, several agencies,
such as 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 five of the six
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%)
1999........................ 1,801.6 1,778.4 +23,200 (+1.3%)
------------------------------------------------------------------------
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.
Related compensation in the form of personnel benefits for current
employees consists of the cost to Govern
[[Page 258]]
ment 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 2001
Agency Base -------------------
1993 1994 1995 1996 1997 1998 1999 2000 2001 FTE's Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cabinet agencies:
Agriculture \1\............... 115.6 114.4 109.8 103.8 100.7 98.5 96.4 95.5 98.2 100.5 -15.1 -13.1%
Commerce...................... 36.7 36.1 36.0 35.3 33.8 32.6 35.7 47.3 133.8 42.6 5.9 16.0%
Defense-military functions.... 931.3 931.8 868.3 821.7 778.9 745.8 707.2 681.0 661.5 645.5 -285.9 -30.7%
Education..................... 5.0 4.9 4.8 4.8 4.7 4.5 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 15.9 16.2 16.1 -4.5 -21.7%
Health and Human Services \1\. 65.0 66.1 62.9 59.3 57.2 57.6 57.9 58.9 61.7 63.2 -1.8 -2.8%
Social Security Administration 65.4 64.8 64.5 64.6 64.0 65.2 64.0 63.0 63.3 63.1 -2.3 -3.5%
Housing and Urban Development. 13.6 13.3 13.1 12.1 11.4 11.0 9.8 10.0 10.4 10.6 -3.0 -22.3%
Interior...................... 79.3 78.1 76.3 72.0 66.7 65.7 66.5 67.0 68.1 69.5 -9.8 -12.4%
Justice....................... 99.4 95.4 95.3 97.9 103.8 111.0 117.3 121.3 127.9 131.5 32.1 32.3%
Labor......................... 18.3 18.0 17.5 16.8 16.0 15.9 16.3 16.3 17.1 17.4 -0.9 -4.8%
State \2\..................... 35.0 34.2 33.5 31.8 30.2 29.2 28.9 29.4 30.0 30.2 -4.8 -13.8%
Transportation................ 70.3 69.1 66.4 63.2 62.4 62.5 63.4 63.7 64.1 65.1 -5.2 -7.4%
Treasury...................... 166.1 161.1 157.3 157.5 151.1 145.5 142.1 143.7 145.5 149.6 -16.5 -10.0%
Veterans Affairs \1\.......... 232.4 234.2 233.1 228.5 221.9 211.5 207.1 205.5 204.1 203.4 -29.1 -12.5%
Other agencies--excluding Postal
Service:
Agency for International 4.4 4.1 3.9 3.6 3.4 2.8 2.7 2.5 2.5 2.5 -1.9 -43.8%
Development \1\..............
Corps of Engineers............ 29.2 28.4 27.9 27.7 27.1 26.0 24.8 24.7 24.7 24.7 -4.5 -15.4%
Environmental Protection 18.6 17.9 17.6 17.5 17.2 17.0 17.7 18.1 18.1 18.0 -0.5 -2.8%
Agency.......................
EEOC.......................... 2.9 2.8 2.8 2.8 2.7 2.6 2.5 2.6 2.8 3.1 0.2 7.0%
FEMA.......................... 2.7 4.0 4.9 4.6 4.7 5.1 4.6 5.2 4.8 4.9 2.2 79.6%
FDIC/RTC...................... 21.6 21.9 20.0 15.7 11.8 8.7 7.9 7.4 7.5 6.8 -14.8 -68.5%
General Services 20.6 20.2 19.5 17.0 15.7 14.5 14.1 14.1 14.2 14.2 -6.4 -31.1%
Administration...............
NASA.......................... 25.7 24.9 23.9 22.4 21.1 20.1 19.1 18.5 18.6 19.0 -6.8 -26.4%
National Archives and Records 2.8 2.6 2.6 2.4 2.5 2.5 2.4 2.4 2.6 2.7 -.1 -1.3%
Admin........................
National Labor Relations Board 2.1 2.1 2.1 2.0 1.9 1.9 1.9 1.8 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 1.2 -0.1 -10.3%
Nuclear Regulatory Commission. 3.4 3.4 3.3 3.2 3.1 3.0 3.0 2.8 2.8 2.8 -0.6 -17.2%
Office of Personnel Management 6.2 5.9 5.3 4.2 3.4 2.8 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 9.2 2.4 -0.1 -8.7 -99.8%
Peace Corps................... 1.3 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.2 1.2 -0.1 -7.1%
Railroad Retirement Board..... 1.8 1.8 1.7 1.6 1.5 1.4 1.3 1.3 1.2 1.2 -0.7 -36.8%
Securities and Exchange 2.7 2.7 2.7 2.7 2.8 2.8 2.8 2.8 3.0 3.0 0.3 10.7%
Commission...................
Small Business Administration. 4.0 5.6 6.3 5.7 4.7 4.5 4.4 4.7 4.6 4.6 0.6 14.9%
Smithsonian Institution....... 5.9 5.5 5.4 5.3 5.1 5.0 5.0 5.1 5.2 5.3 -0.6 -10.2%
Tennessee Valley Authority.... 19.1 17.3 18.6 16.6 16.0 14.9 14.4 13.5 13.3 13.2 -5.9 -31.0%
All other small agencies...... 15.9 15.2 14.7 14.9 13.9 13.6 13.6 13.9 14.5 16.1 0.2 1.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total, Executive Branch civilian 2,155.2 2,138.8 2,052.7 1,970.2 1,891.7 1,834.7 1,790.2 1,778.4 1,856.9 1,762.4 -392.8 -18.2%
employment.....................
Reduction from 1993 Base...... ........ -16.4 -102.5 -185.0 -263.5 -320.5 -365.0 -376.8 -298.3 -392.8 ........ ........
Subtotal, Defense............... 931.3 931.8 868.3 821.7 778.9 745.8 707.2 681.0 661.5 645.5 -285.9 -30.7%
Subtotal, Non-Defense........... 1,223.9 1,207.1 1,184.4 1,148.4 1,112.8 1,088.9 1,083.0 1,097.4 1,195.4 1,116.9 -107.0 -8.7%
---------------------------------=======================================================================================================================
Status of Federal Civilian
Employment Relative to the
Federal Workforce Restructuring
Act \3\
Total, Executive Branch NA NA 2,052.7 1,970.2 1,891.7 1,834.7 1,790.2 1,778.4 NA NA ........ ........
Employment...................
Less: FTEs exempt from FWRA... NA NA 5.7 5.7 7.6 7.4 5.2 5.2 NA NA ........ ........
Total, Executive Branch NA NA 2,047.0 1,964.4 1,884.1 1,827.3 1,785.0 1,773.2 NA NA ........ ........
subject to FWRA Ceiling......
FWRA Ceiling.................. NA NA 2,084.6 2,043.3 2,003.3 1,963.3 1,922.3 1,882.3 NA NA ........ ........
Executive Branch Employment NA NA -37.6 -78.9 -119.2 -136.1 -137.3 -109.1 NA NA ........ ........
Relative to FWRA Ceiling.....
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The Departments of Agriculture, Health and Human Services, Veterans Affairs, and the Agency for International Development have components that were
exempt from FTE controls. In 1999, Agriculture had 2,025 exemptions; HHS had 187 exemptions; Veterans Affairs had 3,010 exemptions and AID had 10
exemptions.
\2\ To facilitate historical comparison, the State Department includes the Board of Broadcasting Governors (BBG), the United States Information Agency
(which was absorbed into State and BBG), and the Arms Control and Disarmament Agency (which was absorbed into State).
[[Page 259]]
\3\ FTE limitations are set for the Executive Branch in the Federal Workforce Restructuring Act of 1994 (P.L. 103-226) from 1994-99.
Table 10-2. TOTAL FEDERAL EMPLOYMENT
(As measured by total positions filled)
----------------------------------------------------------------------------------------------------------------
Actual as of September 30 Change: 1997 to 1999
Description ----------------------------------------------------------
1997 1998 1999 Positions Percent
----------------------------------------------------------------------------------------------------------------
Executive branch civilian employment:
All agencies except Postal Service and Postal Rate
Commission:
Full-time permanent.............................. 1,651,559 1,624,152 1,603,303 -48,256 -2.9%
Other than full-time permanent \1\............... 220,232 231,644 216,333 -3,899 -1.8%
----------------------------------------------------------------------------------------------------------------
Subtotal....................................... 1,871,791 1,855,796 1,819,636 -52,155 -2.8%
------------------------------------------------------==========================================================
Postal Service: \2\
Full-time permanent................................ 648,684 660,987 670,272 21,588 3.3%
Other than full-time permanent..................... 204,666 210,533 196,121 -8,545 -4.2%
----------------------------------------------------------------------------------------------------------------
Subtotal......................................... 853,350 871,520 866,393 13,043 1.5%
------------------------------------------------------==========================================================
Subtotal, Executive branch civilian employment..... 2,725,141 2,727,316 2,686,029 -39,112 -1.4%
------------------------------------------------------==========================================================
Military personnel on active duty: \3\
Department of Defense.............................. 1,438,562 1,406,830 1,385,703 -52,859 -3.7%
Department of Transportation (Coast Guard)......... 35,137 35,459 35,740 603 1.7%
----------------------------------------------------------------------------------------------------------------
Subtotal, military personnel..................... 1,473,699 1,442,289 1,421,443 -52,256 -3.5%
------------------------------------------------------==========================================================
Subtotal, Executive Branch..................... 4,198,840 4,169,605 4,107,472 -91,368 -2.2%
------------------------------------------------------==========================================================
Legislative branch:
Full-time permanent................................ 12,696 12,399 12,183 -513 -4.0%
Other than full-time permanent..................... 18,659 18,075 18,170 -489 -2.6%
----------------------------------------------------------------------------------------------------------------
Subtotal, Legislative Branch..................... 31,355 30,474 30,353 -1,002 -3.2%
----------------------------------------------------------------------------------------------------------------
Judicial Branch:
Full-time permanent................................ 27,567 28,487 28,875 1,308 4.7%
Other than full-time permanent..................... 3,074 3,255 3,321 247 8.0%
----------------------------------------------------------------------------------------------------------------
Subtotal, Judicial Branch........................ 30,641 31,742 32,196 1,555 5.1%
------------------------------------------------------==========================================================
Grand total.......................................... 4,260,836 4,231,821 4,170,021 -90,815 -2.1%
------------------------------------------------------==========================================================
ADDENDUM
Executive branch civilian personnel (excluding Postal
Service):
DOD-Military functions \4\......................... 723,032 692,552 665,679 -57,353 -7.9%
All other executive branch......................... 1,148,759 1,163,244 1,153,957 5,198 0.5%
----------------------------------------------------------------------------------------------------------------
Total \5\........................................ 1,871,791 1,855,796 1,819,636 -52,155 -2.8%
----------------------------------------------------------------------------------------------------------------
\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 260]]
Table 10-3. TOTAL FEDERAL EMPLOYMENT
(As measured by Full-Time Equivalents)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimate Change: 1999 to 2001
Description 1999 ---------------------------------------------
actual 2000 2001 FTE's Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Executive branch civilian personnel:
All agencies except Postal Service and Defense.............................................. 1,097,363 1,195,437 1,116,888 19,525 1.8%
Defense-Military functions (civilians)...................................................... 680,996 661,489 645,494 -35,502 -5.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal, excluding Postal Service........................................................ 1,778,359 1,856,926 1,762,382 -15,977 -0.9%
Postal Service \1\.......................................................................... 851,461 848,187 843,425 -8,036 -0.9%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal, Executive Branch civilian personnel............................................. 2,629,820 2,705,113 2,605,807 -24,013 -0.9%
-----------------------------------------------------------------------------------------------=========================================================
Executive branch uniformed personnel: \2\
Department of Defense....................................................................... 1,387,270 1,379,070 1,379,500 -7,770 -0.6%
Department of Transportation (Coast Guard).................................................. 35,286 35,948 36,247 961 2.7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal, uniformed military personnel.................................................... 1,422,556 1,415,018 1,415,747 -6,809 -0.5%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal, Executive Branch................................................................ 4,052,376 4,120,131 4,021,554 -30,822 -0.8%
-----------------------------------------------------------------------------------------------=========================================================
Legislative Branch: \3\ Total FTE \3\......................................................... 29,932 30,460 30,610 678 2.3%
-----------------------------------------------------------------------------------------------=========================================================
Judicial branch: Total FTE.................................................................... 31,173 32,334 34,063 2,890 9.3%
-----------------------------------------------------------------------------------------------=========================================================
Grand total............................................................................... 4,113,481 4,182,925 4,086,227 -27,254 -0.7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\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 1999 FTE data not available for legislative branch.
[[Page 261]]
TABLE 10-4. PERSONNEL COMPENSATION AND BENEFITS
(In millions of dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimate Change: 1999 to 2001
Description 1999 actual -----------------------------------------------------------
2000 2001 Dollars Percent
--------------------------------------------------------------------------------------------------------------------------------------------------------
Civilian personnel costs:
Executive Branch (excluding Postal Service):
Direct compensation:
DOD--military functions............................................... 32,000 32,303 32,753 753 2.4%
All other executive branch............................................ 58,138 63,500 64,589 6,451 11.1%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal, direct compensation....................................... 90,138 95,803 97,342 7,204 8.0%
Personnel benefits:
DOD--military functions............................................... 7,233 7,105 7,212 -21 -0.3%
All other executive branch \1\........................................ 23,116 24,422 25,421 2,305 10.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal, personnel benefits........................................ 30,349 31,527 32,633 2,284 7.5%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal, executive branch........................................ 120,487 127,330 129,975 9,488 7.9%
-----------------------------------------------------------------------------===========================================================================
Postal Service:
Direct compensation..................................................... 35,886 36,671 37,772 1,886 5.3%
Personnel benefits...................................................... 10,177 10,761 12,011 1,834 18.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal.............................................................. 46,063 47,432 49,783 3,720 8.1%
-----------------------------------------------------------------------------===========================================================================
Legislative Branch: \2\
Direct compensation..................................................... 1,326 1,414 1,489 163 12.3%
Personnel benefits...................................................... 301 319 346 45 15.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal.............................................................. 1,627 1,733 1,835 208 12.8%
-----------------------------------------------------------------------------===========================================================================
Judicial Branch:
Direct compensation..................................................... 1,800 2,016 2,215 415 23.1%
Personnel benefits...................................................... 452 514 565 113 25.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal.............................................................. 2,252 2,530 2,780 528 23.4%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total, civilian personnel costs....................................... 170,429 179,025 184,373 13,944 8.2%
-----------------------------------------------------------------------------===========================================================================
Military personnel costs:
DOD--Military Functions:
Direct compensation..................................................... 49,247 51,256 53,063 3,816 7.7%
Personnel benefits...................................................... 18,051 18,989 19,151 1,100 6.1%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal.............................................................. 67,298 70,245 72,214 4,916 7.3%
-----------------------------------------------------------------------------===========================================================================
All other executive branch, uniformed personnel:
Direct compensation....................................................... 1,203 1,314 1,392 189 15.7%
Personnel benefits........................................................ 131 143 149 18 13.7%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal................................................................ 1,334 1,457 1,541 207 15.5%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total, military personnel costs \3\....................................... 68,632 71,702 73,755 5,123 7.5%
-----------------------------------------------------------------------------===========================================================================
Grand total, personnel costs................................................ 239,061 250,727 258,128 19,067 8.0%
-----------------------------------------------------------------------------===========================================================================
ADDENDUM
Former Civilian Personnel:
Retired pay for former personnel.......................................... 44,767 46,488 48,636 3,869 8.6%
Government payment for Annuitants:
Employee health benefits.............................................. 4,610 4,995 5,354 744 16.1%
Employee life insurance............................................... 31 33 35 4 12.9%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Former Civilian Personnel............................................. 49,408 51,516 54,025 4,617 9.3%
-----------------------------------------------------------------------------===========================================================================
Former Military personnel:
Retired pay for former personnel.......................................... 607 653 693 86 14.2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Includes transfers from general revenues in addition to employing agency's contributions for the cost of employee benefits. The transfers amounted
to $8,759 million in 1999 and are estimated to be $8,838 in 2000 million and $8,939 million in 2001.
\2\ Excludes members and officers of the Senate.
\3\ Excludes reserve components.