Federal public administration industry

Industry Snapshot

GENERAL INDUSTRY: Government and Public Administration

CAREER CLUSTER: Government and Public Administration Occupations

SUBCATEGORY INDUSTRIES: Executive Office of the President; Federal Judiciary; Federal Legal Counsel and Prosecution; General Federal Government Support; Independent Administrative Agencies; Internal Revenue Service; U.S. Cabinet Departments; U.S. Congress

RELATED INDUSTRIES: Civil Services: Planning; Civil Services: Public Safety; Defense Industry; Local Public Administration; National and International Security Industry; Political Advocacy Industry; Public Health Services; Space Exploration and Space Science Industry

ANNUAL DOMESTIC REVENUES:US$1.85 trillion (US Treasury, fiscal year 2024)

NAICS NUMBERS: 92119, 92211, 92213, 923-926, 92111-92113

Summary

The federal public administration industry implements the policies and programs instituted by the federal government of the United States. When the president of the United States makes a broad proclamation concerning, for example, the implementation or enactment of a new law or policy, and when the U.S. Congress passes that act into law and the federal court system rules on the constitutionality or validity of that law, most citizens fail to comprehend the enormity of what has just occurred. Rather, they only read a short article or are presented with a short briefing of the process or newly enacted legislation. The human and other resources necessary to propose, implement, and analyze the laws and the policies of the United States are, however, quite staggering.

The three branches of the federal government—executive, legislative, and judicial—employ about 2.8 million civilians whose duties make the day-to-day operation of government programs possible. Careers in federal public administration may include, for example, monitoring and implementing budgets, drafting and analyzing legislation, collecting and analyzing statistics, developing and implementing public policy, and running or managing federal government agencies. The objectives of sound federal public administration include ensuring justice, liberty, and prosperity for the country, as well as improving the efficiency and efficacy of the federal government. Because federal government programs and objectives are funded primarily by tax dollars paid by citizens and businesses, a primary goal of federal public administration is to provide the best services at the lowest cost to taxpayers, thus maximizing efficiency and minimizing fiscal waste.

Employees of the government are often referred to as public servants or civil servants, terms that describe civilian, rather than military, government employees. Additionally, it is important to note that public administration is an academic field of advanced study. One can also work or teach in related fields, studying, for example, political science, public policy, or governance in general.

History of the Industry

Ancient cultures such as those of Egypt and Greece were among the first to categorize public affairs by office. The Roman Empire used a more detailed approach, establishing specific offices to collect taxes, conduct military and foreign affairs, and administer justice, among other functions. These ancient civilizations, however, did not have a specific field of study for those seeking to enter public service. By the beginning of the nineteenth century in England, those seeking careers in public administration were required to study, among other subjects, history and law. They were also required to pass entry examinations for their desired fields of service.

In the United States, most federal public servants were initially selected on the basis of the so-called spoils system, or patronage. Through this informal system, many federal civilian positions were filled as a way of rewarding those who had supported a winning political candidate. The United States was far from the first country to have such a system, as the patronage system was drawn from selection processes that had been prevalent in many countries, including England. Naturally, such a system was highly susceptible to corruption. It was also inefficient, as those best qualified for a certain position were not likely to be hired unless they actively had supported or contributed to a winning candidate's election. Moreover, those hired under the patronage system did not last long, as they quickly lost their positions after the next election in which their candidate was replaced.

As both the population and the size of the government increased, so, too, did the number of federal government positions needed to help administrate and regulate the growing business of the country and its citizens. In 1883, to remedy the deeply entrenched spoils system, the United States Civil Service Commission (USCSC) was established. This commission was designed to control entry into federal government employment through a merit-based selection process. Initially, the commission only achieved success with respect to the lower ranks of government employment. Not until the early 1900s did the commission achieve enough power to regulate employment for approximately half of the positions in federal government.

Over the next several decades, the USCSC gradually grew in power, until it controlled most low, middle, and management-level positions in the federal government. In 1978, the commission's power was split between two offices, the Office of Personnel Management (OPM) and the Merit Systems Protection Board. Notably, many US states have adopted merit systems similar to the federal system to regulate positions in state service. Approximately two thousand positions remain outside the jurisdiction of these two governmental bodies.

The president of the United States has the duty of appointing individuals to certain key positions, such as the directors of federal agencies, federal judges, and other key employees. Pursuant to the US Constitution, the US Senate has the duty to give "advice and consent" on the president's nominees and must vote on each nomination over which they retain that power. (Congress has the authority to establish by statute which appointees require senatorial consent and which appointees may be chosen solely by the president, by the judiciary, or by cabinet secretaries.) Consequently, although a form of the spoils system may still be in effect for certain positions, the voice of the people, through their elected representatives, is still heard.

The Industry Today

The federal public administration industry employed nearly 3 million people in the United States in 2023, making it the nation's largest employer (this statistic excludes certain groups, such as employees of the US Postal Service and military employees). Although most federal agencies and offices are headquartered in Washington, DC, nearly 90 percent of federal public administration jobs are located outside the nation's capital. Excluding military service and other forms of classified work, almost every aspect of the business of the federal government is carried out by civil service employees. Simply stated, federal public administration employees make the workings of the government possible.

Careers in public administration can offer interesting and challenging work, a steady work schedule for most employees, competitive salaries, and benefits packages that are often equivalent with, or better than, those in the private sector. Specific career functions within federal public administration include, for example, working in the Census Bureau, compiling and analyzing statistics concerning the population; analyzing soil for the Forestry Department; assisting immigrants in obtaining citizenship; implementing federal tax policy for the Internal Revenue Service; researching or drafting legislation for Congress; prosecuting federal crimes; and working as an economist for the Department of Commerce.

There are hundreds of distinct federal departments, agencies, and organizations spread across all three branches of the federal government. The executive branch, however, is by far the primary employer, accounting for about 98 percent of the nation's federal public administration employees. This government branch includes the Executive Office of the President, ninety independent agencies, and the following fifteen cabinet departments. The Department of Defense manages the branches of the armed forces; the Department of Veterans Affairs operates programs for veterans and their families and administers the hospital system and national cemeteries for veterans and military personnel; the Department of Homeland Security seeks to prevent terrorist attacks and implements immigration policy; the Treasury Department prints currency and regulates financial institutions; and the Department of Justice enforces federal laws and ensures public safety. The Department of Agriculture promotes agriculture and monitors the safety of domestic meat and poultry; the Department of the Interior manages national parks and promotes conservation of natural resources; the Department of Health and Human Services regulates the Medicare and Medicaid health programs and ensures the safety of drugs and some foods. The Department of Transportation plans and constructs highways, railways, and mass transit systems; the Department of Commerce conducts the census, compiles statistics, and regulates patents and trademarks; the Department of State represents national interests abroad, issues passports, and oversees the country's embassies and consulates; the Department of Labor enforces federal laws concerning wages, equal opportunity, and workplace safety, as well as regulating pension funds; the Department of Energy manages the use and development of energy and plans for future energy needs; the Department of Housing and Urban Development enforces equal housing laws and administers public housing projects; and the Department of Education distributes financial aid to students and schools and enforces the prohibition against discrimination in education.

Most of the government's independent agencies are charged with duties that fall within the jurisdiction of more than one government branch. Although most independent agencies are small, employing one hundred or fewer people, some are much larger and employ tens of thousands. Some of the best-known independent federal agencies include the Social Security Administration, which is charged with administering old age, disability, and survivor insurance programs; the National Aeronautics and Space Administration (NASA), which is responsible for space research and exploration; the Environmental Protection Agency (EPA), which is charged with reducing air, water, and land pollution; and the Office of Personnel Management (OPM), which functions as the federal government's human resources division.

There are also dozens of other agencies performing important services for the public that do not receive the press or notoriety of, for example, the Department of Defense. The Federal Housing Finance Agency (FHFA), the Election Assistance Commission (EAC), the Government Accountability Office (GAO), and the Library of Congress, for example, are all federal agencies charged with important duties.

Federal agencies employ a wide variety of individuals with diverse backgrounds. From maintenance workers to high-level executives, anyone can seek a career in civil service. The federal government is prohibited from discriminating on the basis of race, color, religion, sex, national origin, disability, or age and seeks to attract minority candidates and individuals with disabilities. Moreover, the majority of public administration positions are career positions, as opposed to temporary positions. The retirement package offered by the federal government is competitive with those offered by many private companies.

Industry Outlook

Overview

The outlook for the federal public administration industry is consistently stable. Like many private businesses, however, the federal government is not immune from global economic troubles. For example, in the wake of the 2008 global financial crisis, President Barack Obama called for lowering the annual pay raise for most federal workers to 2 percent for 2010, down from the 3.9 percent raise that federal employees received in 2009. In general, when the entire private sector of employment, as well as millions of homeowners, are having difficulty making ends meet, such difficulties will eventually trickle down to generally stable civil service positions. Political factors also play a role, as some administrations seek to reduce the size and spending of the government, potentially leading to a reduction of jobs. For example, President Donald Trump cut the federal workforce in multiple departments with a hiring freeze and other means of reducing staff. Some saw double-digit declines, such as the U.S. Department of Agriculture's Economic Research Service, which took a 33 percent staff hit. However, the departments of Defense, Homeland Security, and Veterans Affairs saw growth during his presidency (2017-2020), resulting in a net growth of 2 percent of the federal workforce.

Notwithstanding any temporary concerns with federal public administrative employment, there is statistical evidence to support the contention that the industry in general will remain stable. First, and perhaps most important, many federal workers are on track to retire in the near future, according to the Office of Policy and Management. Not all employees will retire as soon as they reach the age of eligibility, but the trend suggests that there will be substantial growth in the number of positions open to younger generations of workers.

The Bureau of Labor Statistics (BLS) has predicted nationwide growth across broad job categories such as security, enforcement, and compliance (positions such as police officers and airport screeners); medicine and public health (physicians and similar positions); engineering and science (scientists, chemists, and veterinarians); program management and administration (positions focused on agency efficiency and performance); and business (revenue agents and tax examiners for the Internal Revenue Service). As these fields grow in the private sector, they are likely to grow in the public sector as well.

Employment Advantages

Even though specific industries within the realm of federal public administration may decline over the long term, individuals seeking rewarding careers, the opportunity for advancement, and excellent health care and other important benefits should consider a career in federal public administration. Federal jobs exist in every city in every state, in a variety of agencies. A job in federal public administration can represent either a permanent career or a source of valuable experience that functions as a stepping stone to other work.

Because of the size of the federal government and the fact that many current employees will be retiring in the foreseeable future, it is certain that there will be many job openings across the country in every agency, even in career areas that are anticipated to decrease in importance over time. Especially in times of economic uncertainty, federal public administrative employment provides a high degree of job security, largely because the federal government is not as affected by economic fluctuations as is the private sector.

Annual Earnings

The federal government does not earn money in the sense that a private company, or an individual employee, earns money. The government operates primarily through the collection of taxes from individuals and businesses. For example, in fiscal year 2024, the federal government collected approximately $1.87 trillion in revenue. As there are about 3 million federal civilian employees (even excluding the US Postal Service and the military), the federal government appropriates more than a trillion dollars of revenue to pay wages for its employees.

Federal civilian positions comprise dozens of job categories, which differ significantly in their respective salary expectations. According to ZipRecruiter, in fiscal year 2024, the average annual wage for all types of government occupations was $106,462.

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