Workforce Overview Brief to - Statistics

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							                         UNITED STATES

               OFFICE OF PERSONNEL MANAGEMENT





               FEDERAL WORKFORCE

                    OVERVIEW

                     FY 1994 - FY 2004



                       SPECIAL FOCUS

                      RESEARCH BRIEF



                 UNITED STATES OFFICE   OF   PERSONNEL MANAGEMENT


                              Working
                                for
                              America
April 2006 

Federal Workforce Overview: FY 1994 – FY 2004                                                            1




Introduction

This research brief provides an overview of observed trends and demographic changes in the
Federal workforce from FY 1994 to FY 2004. Topics covered in the following pages range from
age distribution of new hires to characteristics of retirees.

Age

Between FY 1994 and FY 2004, the age distribution of full-time permanent (FTP) white-collar
federal employees shifted toward older age brackets, as observed in Figure 1 below. This
coincides with the average age of white-collar FTP employees increasing from 43.6 to 46.7
years of age during the same ten-year span.


                                                            Figure 1:
                                                      Age Distribution Trends


                                                    FY1994             FY1999            FY2004

                                 25%
          Percent of Workforce




                                 20%

                                 15%

                                 10%

                                 5%

                                 0%
                                       < 20 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 > 65
                                                                     Age


Figure 2 examines the specific percentage changes in defined age brackets. The largest
percentage decreases are observed within the 25-29 and 30-34 groups. Between FY 1994 and
FY 2004, the number of 30- to 34-year-olds decreased 4.3%, lowering its share of the overall
FTP white-collar federal workforce from 12.1 to 7.8 percent. Similarly, the 25-29 age cohort
decreased 3.4%, lowering its share from 7.8 to 4.4 percent.

Conversely, the largest percentage increases were seen in the 50-54 and 55-59 age brackets.
The 50-54 group increased 6.1% in size, bringing its share of the FTP white-collar federal
workforce to 19.3 percent. The second largest increase was seen within the 55-59 group,
whose share of the FTP white-collar federal workforce increased 5.6% between FY 1994 and
FY 2004, resulting in a share of about 14 percent of the FTP white-collar federal workforce.
Together, as of FY 2004, 50- to 59-year-olds comprise roughly one-third of the FTP white-collar
workforce.




                                              United States Office of Personnel Management
    Federal Workforce Overview: FY 1994 – FY 2004                                                                 2




                                              Figure 2:
             FTP White-collar Federal Workforce Percentage Changes FY 1994 to FY 2004
                                        8%

                                        6%
                       Percent Change
                                        4%

                                        2%

                                        0%
                                              < 20 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64   > 65
                                        -2%

                                        -4%

                                        -6%




    Occupational Family

    White-collar occupations are grouped into families, represented by the first two numbers of the
    four-digit occupation series code. The last two numbers of the series distinguish the specific
    occupation title. For example, 0408 Ecology, 0410 Zoology, 0415 Toxicology, 0430 Botany, and
    0460 Forestry are all part of the larger 04xx Biological Sciences family. See the appendix for a
    complete list of the twenty-three white-collar occupational families with examples of a few of the
    most populous titles within the family.

    Figure 3 demonstrates how only six of the twenty-three occupational families experienced a
    percentage increase in employment between FY 1994 and FY 2004, whereas seventeen
    experienced a decrease. Notable increases include the Copyright, Patent, and Trademark
    family (72%), Miscellaneous Occupations family 1 (54%), and the Investigations family (39%).
    Notable decreases include the Supply family (-41%), Quality Assurance and Inspection family
    (-39%), as well as the Administrative and Clerical family (-32%). 2




1
 Miscellaneous Occupations family consists largely of public safety and enforcement personnel.
2
 A reclassification from 0334 to 2210 was taken into account, yet a decrease in the occupational family is still
evident.


                                                 United States Office of Personnel Management
Federal Workforce Overview: FY 1994 – FY 2004                                                                              3




                                         Figure 3:
                Percentage Changes in Occupational Family FY 1994 to FY 2004

                                                                                                                12-Co pyrght/Pat
                                                                                                     00-M isc Occups
                                                                                          18-Investigatio ns
                                                                          22-Info M gmt
                                                                      09-Legal & Kind
                                                                      01-So c Sciences
                                                                21-Transport
                                            15-M aths/Stats
                                        06-M ed/Hsp/Hlth
                                        04-Bio Sciences
                                     07-Vet M ed
                                    10-Info /Arts
                                  1
                                 1 -Business/Ind
                           14-Libr/Archvs
                            02-HR M gmt
                       05-Acct/Budgtng
                           13-Phys Scis
                           17-Educatio n
                      08-Engr/Architec
                       16-Equip/Facil
                         03-A dmin
                19-QA /Inspect
                  20-Supply

              -60%         -40%            -20%            0%          20%           40%             60%         80%

                                                        Percent Change



Occupational Category

In an even broader classification than occupational family, all white-collar occupations fall into
one of five occupational categories: Professional, Administrative, Technical, Clerical, or “Other”
(referred to as PATCO).

Figure 4 examines the distributions of occupational categories for FY 1994, FY 1999, and FY
2004. There is an increasing trend in the administrative category, complemented by a
decreasing trend in the clerical category. Administrative jobs have increased from 33.2 to 40.7
percent over the ten-year span, while clerical jobs have decreased from 15.1 to 7.1 percent.
This trend is likely due to increased automation of tasks within the Federal government.




                                      United States Office of Personnel Management
Federal Workforce Overview: FY 1994 – FY 2004                                                                            4



                                                                      Figure 4:
                                                             Occupational Category Trends



                                                                    1994             1999          2004

                                     45%

                                     40%

                                     35%
                         orkforce




                                     30%

                                     25%
             Percent of W




                                     20%

                                     15%

                                     10%

                                         5%

                                         0%
                                              Professional    Administrative       Technical        Clerical     Other

                                                                    Occupational Category


Accessions

As Figure 5 below illustrates, the average age of a newly hired Federal employee was older in
FY 2004 than it was in FY 1994. At 36.5, the average age of a person hired without prior
Federal service was 2.5 years older than the average in 1994. Similarly, the average age of
persons hired with prior Federal service rose by 2 years, bringing that figure to 39.5.


                                                                   Figure 5:
                                                                  Average Age at Hire

                                                                No Prior Service         Prior Service

                                    40

                                    39

                                    38

                                    37
            Age




                                    36

                                    35

                                    34

                                    33
                                                  1994                         1999                       2004




                                                      United States Office of Personnel Management
Federal Workforce Overview: FY 1994 – FY 2004                                                                               5



In FY 1994, 55.5 percent of persons hired had no prior Federal service. By FY 2004, that
portion of new hires had grown to 65.7 percent.

Figure 6 demonstrates that there has been a shift in the age distribution of new hires, consistent
with the comments above regarding the increasing average age. In FY 2004, the distribution
had begun to flatten out a bit more, tending toward the older age brackets than in FY 1994.



                                                                Figure 6:
                                                      Age Distribution of New Hires




                                                              1994              1999             2004

                             20
                             18
                             16
          Percent of Hires




                             14
                             12
                             10
                              8
                              6
                              4
                              2
                              0
                                  < 20   20-24     25-29   30-34     35-39   40-44   45-49   50-54   55-59   60-64   > 65

                                                                             Age



The occupational family with the highest average age of new hires is the Veterinary Medical
Science family. The youngest average age is observed within the Copyright, Patent, and
Trademark family. Figure 7 summarizes the FY 2004 average age of all twenty-three
occupational families.




                                                 United States Office of Personnel Management
Federal Workforce Overview: FY 1994 – FY 2004                                                            6



                                          Figure 7:
                   Average Age of FY 2004 New Hires by Occupational Family



                                                07-Vet M ed

                                              16-Equip/Facil

                                               17-Educat ion

                                             14-Libr/ Archvs

                                           06-M ed/ Hsp/Hlth

                                               21-Transport

                                                  03-Admin

                                                10-Info/ Arts
                                     ily




                                              22-Info M gmt
                     O cupational Fam




                                               02-HR M gmt

                                                  20-Supply

                                              1
                                             1 -Business/ Ind

                                           05-Acct /Budgtng

                                                13-Phys Scis
                      c




                                            09-Legal & Kind

                                            01-Soc Sciences

                                            00-M isc Occups

                                              19-QA/ Inspect

                                           18-Investigations

                                           08-Engr/ Architec

                                            04-Bio Sciences

                                             15-M at hs/St ats

                                           12-Copyrght/ Pat


                                                                 0   10     20        30       40   50

                                                                          Average Age




Of interest to many people is average salary and grade. As Figures 8 and 9 demonstrate, there
has been a steady increase in the average salary and grade of new hires. Those hired with
prior Federal service have a higher starting salary, but those hired without prior Federal service
have higher starting grades. Any analysis made, however, must consider the changes incurred
to the government pay system over the past few decades.

In the early 1970s, nearly all white-collar Federal employees were governed by the General
Schedule (GS) pay plan. Since that time, many new pay plans have been created, often at the
agency level. To bridge the gap, OPM developed a formula to account for the new pay plans,
creating a new data element referred to as “GS and related grade.” Still, not all new pay plans
can be bridged. By September 2004, fewer than 84 percent of Federal employees worked
under the GS pay plan and roughly 6 percent were covered under GS and related. Thus, one
must bear this in mind when interpreting Figure 9, which reports on 90% of the FTP white-collar
federal workforce.




                                                    United States Office of Personnel Management
Federal Workforce Overview: FY 1994 – FY 2004                                                   7




                                                  Figure 8:
                                            Average Salary at Hire

                                               No Prior Service          Prior Service

                       $48,000
                       $47,000

                       $46,000
                       $45,000
            Salary




                       $44,000
                       $43,000
                       $42,000

                       $41,000
                       $40,000
                                     1994                         1999                   2004




                                               Figure 9:
                                  Average GS and Related Grade at Hire



                                              No Prior Service           Prior Service

                     8.3

                     8.1

                     7.9
          Grade




                     7.7

                     7.5

                     7.3

                     7.1

                     6.9
                                 1994                      1999                          2004




Of all occupational families, the Information Management family has the highest average salary
for new hires. The Supply family has the lowest average salary for new hires. The complete list
for all occupational families is given below in Figure 10.




                                   United States Office of Personnel Management
Federal Workforce Overview: FY 1994 – FY 2004                                                                    8




                                                            Figure 10:
                                        Average Salary of New Hires by Occupational Family



                                     INFO M ANAGEM ENT-22

                                          M ATHS & STATS-15

                                    CPYRT, PTNT & TRDM K-12

                                          PHYS SCIENCES-13

                                           ENGR & ARCH-08

                                       S SCI, PSYCH & WLF-01

                                             TRANSPORT-21
              Occupational Family




                                          LEGAL & KNDRD-09

                                           VET M EDICINE-07

                                             INFO & ARTS-10

                                       EQUP, FACL & SVCS-16

                                         M ED & PUB HLTH-06

                                          ACNTG & BDGT-05

                                           ADM IN & CLER-03

                                       QA, INSPCT & GRDG-19

                                        BUSINESS & INDUS-11

                                     HUM AN RESC M GM T-02

                                              EDUCATION-17

                                          INVESTIGATION-18
                                           BIO SCIENCES-04

                                          LIB & ARCHIVES-14
                                     M ISC OCCUPATIONS-00

                                                 SUPPLY-20


                                                           $0      $20,000      $40,000      $60,000   $80,000

                                                                          Average Salary



Separations

At the beginning of FY 2004, separation rates were highest among the following occupational
families: Miscellaneous Occupations; Copyright, Patent, and Trademark; Medical, Hospital,
Dental, and Public Health; Education; and Veterinary Medical Science. These families were
also among those that hired most aggressively.

Currently, the average age at separation — excluding retirement — is 40.6 years old. This
statistic varies considerably between occupational families, ranging from 33.6 years in the
Copyright, Patent, and Trademark family to 48.2 years for the Quality Assurance, Inspection,
and Grading family.




                                                   United States Office of Personnel Management
    Federal Workforce Overview: FY 1994 – FY 2004                                                                      9



    The average age of separation by retirement in FY 2004 is 58.7 years. This figure is lowest in
    the Miscellaneous Occupation family, where the average age is 56.3, and highest in the
    Veterinary Medical Science family, where the average age is 63.3. 3

    Figure 11 juxtaposes, at the occupational family level, average age at retirement and at other
    types of separation.


                                                               Figure 11:
                                         Average Age at Retirement and Other Separation FY 2004



                                                                          Other Seperations          Retirement

                                                VET M EDICINE-07
                                         CPYRT, PTNT & TRDM K-12
                                                   EDUCATION-1 7
                                              PHYS SCIENCES-1  3
                                               LIB & ARCHIVES-14
                                                 ENGR & ARCH-08
                   Occupational Family




                                             M ED & PUB HLTH-06
                                                    INFO & ARTS-10
                                            QA, INSPCT & GRDG-1  9
                                               M ATHS & STATS-1  5
                                                 BIO SCIENCES-04
                                                ACNTG & BDGT-05
                                                 ADM IN & CLER-03
                                               LEGAL & KNDRD-09
                                            EQUP, FACL & SVCS-1  6
                                             BUSINESS & INDUS-1   1
                                                        SUPPLY-20
                                            S SCI, PSYCH & WLF-01
                                          INFO M ANAGEM ENT-22
                                          HUM AN RESC M GM T-02
                                                    TRANSPORT-21
                                                INVESTIGATION-1  8
                                          M ISC OCCUPATIONS-00

                                                                      0   10    20   30       40     50   60      70

                                                                                       Age



    The narrowest differences between average age of retirement and other separation were
    observed in the Equipment, Facilities, and Services occupational family (10.5 years) and the
    Quality Assurance, Inspection, and Grading family (11.1 years). Conversely, the widest
    differences between average age of retirement and other separation were detected in the
    Copyright, Patent, and Trademark family (27.8 years) and the Mathematics and Statistics family
    (24.9 years). Recall, also, that the Copyright, Patent, and Trademark family and the
    Mathematics and Statistics family had the two youngest average ages at time of hire.

    As of FY 2004, the average length of service for a departing Federal employee—excluding
    retirement—is 8.2 years. The average length of service upon retirement is 28.1 years. Figure
3
 A significant number of individuals in the Miscellaneous Occupations family, the Investigation family and the
Transportation family are covered by lower age and length of service requirements which tend to force the
average age at retirement down in these categories.


                                                      United States Office of Personnel Management
Federal Workforce Overview: FY 1994 – FY 2004                                                                  10



12 illustrates the varying lengths of service upon retirement or other separations broken down
by occupational family.


                                           Figure 12:
             Average Length of Service at Retirement and Other Separation FY 2004



                                                                         Other Separation    Retirement

                                                BIO SCIENCES-04
                                               PHYS SCIENCES-1  3
                                               M ATHS & STATS-1 5
                                        CPYRT, PTNT & TRDM K-1  2
                                                 ENGR & ARCH-08
                                           EQUP, FACL & SVCS-1  6
                  Occupational Family




                                                   TRANSPORT-21
                                           QA, INSPCT & GRDG-1  9
                                         INFO M ANAGEM ENT-22
                                           S SCI, PSYCH & WLF-01
                                         HUM AN RESC M GM T-02
                                                   INFO & ARTS-10
                                            BUSINESS & INDUS-1   1
                                               INVESTIGATION-1  8
                                                ADM IN & CLER-03
                                              LEGAL & KNDRD-09
                                               ACNTG & BDGT-05
                                               LIB & ARCHIVES-1 4
                                                VET M EDICINE-07
                                                       SUPPLY-20
                                         M ISC OCCUPATIONS-00
                                             M ED & PUB HLTH-06
                                                    EDUCATION-1 7

                                                                     0   5    10   15   20   25   30      35

                                                                                    Years


Retirement

In FY 2004, there were a grand total of 55,848 retirements from the entire Federal workforce.
The average age of retirees was 58.7. While this number has been slowly increasing in recent
years, the overall trend in the past ten years is nearly the same, with an average of 52,124
retirements per year at an average age of 58.0.

Figure 13 below traces the fluctuation in retirement counts in recent years.




                                                            Figure 13:
                                            Yearly Retirement Counts FY 1990 – FY 2004



                                                 United States Office of Personnel Management
Federal Workforce Overview: FY 1994 – FY 2004                                                                                                     11




                              80,000



                              70,000



                              60,000



                              50,000
                Retirements




                              40,000



                              30,000



                              20,000



                              10,000



                                  0
                                       FY1990 FY1991 FY1992 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004
                                                                                      Fiscal Year




During 2004, 192,100 Federal employees were eligible for retirement from service, totaling
10.4percent of the workforce. Additionally, 303,000 employees were eligible for early-out
retirement, or 16.4 percent of the Federal workforce. Combined, these numbers indicate that
just over one-fourth of the Federal workforce could be eligible to retire.

An employee will, on average, work for 3.1 years after reaching retirement eligibility — males
average 3.3 and females average 2.7 years. Less than one in four employees that are eligible
for retirement actually retires in a given year. Figure 14 follows the pattern retirement rates in
recent years.




                                                    United States Office of Personnel Management
Federal Workforce Overview: FY 1994 – FY 2004                                                                                                           12




                                                              Figure 14:
                                                 Retirement Rates among Those Eligible



      35%

      30%

      25%

      20%                                                                                                                                            Voluntary

      15%                                                                                                                                            Early Out

      10%

       5%

       0%
             FY1990

                      FY1991

                               FY1992

                                        FY1993

                                                  FY1994

                                                           FY1995

                                                                    FY1996


                                                                             FY1997

                                                                                      FY1998

                                                                                               FY1999

                                                                                                        FY2000

                                                                                                                 FY2001

                                                                                                                          FY2002

                                                                                                                                   FY2003

                                                                                                                                            FY2004
One important trend to observe from the figure above is the declining rate of early-out
retirement, which can alleviate some of the concern raised by the prospect that 303,000
employees could be eligible under this authority. In FY 2004, there were a total of 7,587 early-
out retirements as compared to a 10-year average of 12,208.

Other interesting facts about retirement include the most popular month to retire is typically
January and the least popular month November. In FY 2004, 61 percent of retirements recorded
were by males, whereas 39 percent were by females. This compares to a FY 2004 workforce
distribution of 56 percent male and 44 percent female



Retirement Projections

Baby boomers heading toward retirement from the Federal workforce are a concern for many
human capital managers and planners. Using time series modeling techniques, it is projected
that nearly 61,000 non-seasonal full-time permanent Federal employees will retire in FY 2008.
It is further predicted that the numbers of retirements will peak around 2008 to 2010.

Another point to be made is that the number of retirements projected will continue to increase
each year from FY 2005 through FY 2010, capping off at 61,009. Thereafter, the number of
retirements is expected to begin decreasing. Again, these estimates are based on time series
modeling techniques, which tend to perform well for not-too-distant extrapolation but can rapidly
lose precision the further out estimation becomes.




                                                 United States Office of Personnel Management
Federal Workforce Overview: FY 1994 – FY 2004                                                                     13




                                                   Figure 15:
                                Actual Retirements versus Retirement Projections
                                 (non-seasonal full-time permanent employees)


             70,000




             60,000




             50,000




             40,000




             30,000



                                                               FY Actuals
             20,000

                                                               2005 Projections

             10,000




                 0
                      FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13




                                         United States Office of Personnel Management
                                APPENDIX




                             Appendix
       Occupational Families with Most Populous Occupation(s)

0000   MISCELLANEOUS OCCUPATIONS FAMILY
       Correctional Officer
       Safety Technician (e.g., TSA screeners)
       Environmental Protection
       Security Administration
       Fire Protection & Administration
       Police
0100   SOCIAL SCIENCE, PSYCHOLOGY, & WELFARE FAMILY
       Social Science
       Social Insurance Administration
       Economist
       Foreign Affairs
       Intelligence
       Social Work
0200   HUMAN RESOURCES MANAGEMENT FAMILY
       Human Resources Management
       Human Resources Assistant
       EE0
       Wage & Hour Compliance
0300   GEN ADMIN, CLERICAL, & OFFICE SERVICE FAMILY
       Miscellaneous Administration & Program
       Miscellaneous Clerk & Assistant
       Secretary
       Program Management
       Management & Program Analysis
       Logistics Management
0400   BIOLOGICAL SCIENCES FAMILY
       General Biological Science
       Biological Science Technician
       Soil Conservation & Science
       Forestry
       Wildlife Biology
       Fishery Biology




                United States Office of Personnel Management
                                 APPENDIX



0500   ACCOUNTING & BUDGET FAMILY
       Financial Administration & Program
       Accounting
       Auditing
       Internal Revenue Agent
       Budget Analysis
       Tax Examining
0600   MEDICAL, HOSPITAL, DENTAL, & PUBLIC HEALTH FAMILY
       Medical Officer
       Nurse (registered/practical/assistant)
       Health Aid & Technician
       Pharmacist & Pharmacy Technician
       Medical Records Technician
       Medical Support Assistance
0700   VETERINARY MEDICAL SCIENCE FAMILY
       Veterinary Medical Science
       Animal Health Technician
0800   ENGINEERING & ARCHITECTURE FAMILY
       General Engineering
       Engineering Technician
       Civil Engineering
       Mechanical Engineering
       Electronics Engineering
       Aerospace Engineering
0900   LEGAL & KINDRED FAMILY
       General Legal & Kindred Administration
       General Attorney
       Contact Representative
       Paralegal Specialist
       Legal Assistance
       Veterans Claims Examining
1000   INFORMATION & ARTS FAMILY
       General Arts & Information
       Public Affairs
       Audiovisual Production
       Writing & Editing
       Technical Writing & Editing
       Visual Information




                 United States Office of Personnel Management
                                 APPENDIX



1100   BUSINESS & INDUSTRY FAMILY
       General Business & Industry
       Contracting
       Purchasing
       Production Control
       Loan Specialist
       Internal Revenue Officer
1200   COPYRIGHT, PATENT, & TRADEMARK FAMILY
       Patent Examining
       Patent Attorney
1300   PHYSICAL SCIENCES FAMILY
       General Physical Science
       Physics
       Hydrology
       Chemistry
       Meteorology
       Geology
       Cartography
1400   LIBRARY & ARCHIVES FAMILY
       Librarian
       Library Technician
       Technical Information Services
       Archives Technician
1500   MATHEMATICS & STATISTICS FAMILY
       Operations Research
       Mathematics
       Mathematical Statistician
       Statistician
       Cryptanalysis
       Computer Science
1600   EQUIPMENT, FACILITIES, & SERVICES FAMILY
       Equipment, Facilities & Services
       Facility Operations Services
       Equipment Services
1700   EDUCATION FAMILY
       General Education & Training
       Education & Training Technician
       Education & Vocational Training
       Training Instruction
       Instructional Systems




                 United States Office of Personnel Management
                                  APPENDIX



1800   INVESTIGATION FAMILY
       General Inspection, Investigation & Compliance
       Compliance Inspection & Support
       Criminal Investigating
       Aviation Safety
       Customs & Border Protection
       Border Patrol Agent
1900   QUALITY ASSURANCE, INSPECTION, & GRADING FAMILY
       Quality Assurance
       Agricultural Commodity Grading
2000   SUPPLY FAMILY
       General Supply
       Supply Program Management
       Supply Clerical & Technician
       Inventory Management
       Sales Store Clerical
2100   TRANSPORTATION FAMILY
       Transportation Specialist
       Transportation Clerk & Assistant
       Traffic Management
       Transportation Operations
       Air Traffic Control
       Aircraft Operation
2200   INFORMATION MANAGEMENT FAMILY
       Information Technology Management




                  United States Office of Personnel Management

						
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