Unemployment Claims Increase for Federal Workers - RAOT October 19th 2025

Based on a Wall Street Journal report, the number of unemployment claims filed by federal workers jumped significantly in early October. The federal government remained closed as of the publication of this report, but unemployment insurance claims are reported by state offices. 

In the week prior to the shutdown, only 588 federal government workers filed an initial unemployment claim. That number jumped to a total of more than 10,500 for the last two weeks combined. The increase in claims was driven by those that were temporarily furloughed, but it also included workers that took a deferred-resignation plan earlier in the year. 

While U.S. hiring has generally been weak, the lack of available labor is one of the main challenges. Workers on leave from government jobs could potentially look to other industries for roles that require a similar skill set. In its most recent report, the Bureau of Labor Statistics reported there were close to 6.5 million jobs open in the private sector. 

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