Why rush to eliminate Government Jobs? The Positive Economic Impact of Government Employment on Minority Communities

Starting with the Regan Administration and living currently on a drug fueled bender with Donald Trump & Elon Musk’s illegal Governmental Efficiency unit, the war on Government operations and those who work in Governmental Agencies has lasted for over 60 years. Despite the Republican, then MAGA Republican war on Government, Governmental operations have continued to play a critical, useful and helpful role in American society. As I shared in my previous article on the MAGA Waste, Fraud & Abuse lies, all levels of Government have built-in structures to address issues including oversight, waste, fraud, abuse (WFA) or any other challenges including overreach. ?So despite the latest unsanctioned, despicable rushed war on Governmental employees, Government employment—at the federal, state, and local levels—plays a critical role in supporting the economic stability and upward mobility of minority communities in the United States.

So why the urgent war to eliminate Federal employees by the hundreds of thousands and, through the illegal freezing and reductions in Federal funds, the elimination of hundreds of thousands of State and Local government employees.

These jobs provide steady wages, benefits, and opportunities for career advancement, serving as a foundation for financial security, especially for Non-White Americans who work at all levels of Government. So why the rush to eliminate millions of Federal, State and Local Government employees? It will create significant holes in the economic stability of diverse Communities and the corresponding war on diversity and diverse economic gains for minority businesses and minority employees in the private sector will create significant economic devastation on diverse American communities.

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Before we get to the negative economic outcomes of the MAGA war on Government employees, it is critical to demonstrate how Communities of Color have benefited economically from Federal, State, County, Public K-12 education and Municipal Government employment. Using data from the existing employment distribution the Office of Personnel Management FedScope[1], U.S. Department of Defense. (n.d.). U.S. Military Rank Insignia reports[2], The EEO-4[3] State and Local Government report for Governmental agencies with more than 100 employees and State and Local Government Employment & Payroll Data reports[4] from the U.S. Census Bureau, this analysis quantifies the economic output generated by minority workers in government roles and their contributions to overall economic activity. By understanding the scale and importance of public sector employment, we can highlight the broader impact on economic strength within each community.

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The Economic Output of Government Employment by Racial Group

Government jobs contribute directly to economic output through wages, taxes, and consumer spending. The following breakdown illustrates how employment in the public sector supports the financial well-being of different racial and ethnic communities. According to government employment data, minority groups are proportionally more represented in public sector roles compared to their overall adult population share.

For instance, African Americans make up approximately 12.1% of the adult U.S. population but hold 18% of government jobs, while Hispanic Americans represent 18.9% of the adult population and hold 14% of government jobs. In greater context, Non-White employees comprise the following percentage of total employees by Governmental entity:

·?????? 33.8% of traditional Federal Civilian Executive Branch employees

·?????? 51.5% of U.S. Postal Service employees

·?????? 47.6% of Active duty Military personnel

·?????? 41.5% of Military personnel Reserve Status

·?????? 41.3% of State & local Government employees – Governmental Agency with more than 100 employees

·?????? 34.6% of State & local Government employees – Governmental Agency with less than 100 employees?

These figures highlight the critical role of government employment in providing economic stability and career opportunities for underrepresented communities. The following breakdown illustrates how employment in the public sector supports the financial well-being of different racial and ethnic communities:

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African American Community

• Total Government Employment: 3,986,217
• Annual Wages Generated: $245,875,274,180
• Total Economic Output: $614,688,185,450
• Contribution to U.S. GDP: 2.25%
• Importance: With a significant proportion of African Americans employed in government positions, these jobs provide essential income stability, help close racial wealth gaps, and drive local economic growth through consumer spending. Several key states, counties, and cities have particularly high concentrations of African American government employees, including Maryland, Georgia, Virginia, Texas, and North Carolina at the state level. Major metropolitan areas such as Washington, D.C., Atlanta, Baltimore, Detroit, and Philadelphia have substantial African American public sector workforces, contributing significantly to their regional economies. Counties like Prince George’s County (MD), DeKalb County (GA), and Cook County (IL) also serve as hubs for African American government employment, where public sector roles not only support individuals and families but also fuel local businesses and economic development initiatives. The stability provided by these government jobs ensures that these communities continue to thrive despite economic fluctuations.

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Hispanic American Community

• Total Government Employment: 2,866,411
• Annual Wages Generated: $184,903,682,904
• Total Economic Output: $462,259,207,260
• Contribution to U.S. GDP: 1.69%
• Importance: Public sector employment offers Hispanic workers competitive salaries and career pathways that support homeownership, business development, and community investment. Hispanic Americans are heavily represented in government employment in key states such as California, Texas, Florida, New York, and Arizona, where public sector roles provide stability and upward mobility. Cities including Los Angeles, Houston, Miami, San Antonio, and Phoenix have large Hispanic public sector workforces, particularly in education, law enforcement, and municipal services. Counties like Los Angeles County (CA), Harris County (TX), and Miami-Dade County (FL) also serve as significant employment hubs, where Hispanic government workers contribute to local economies through public service, consumer spending, and community investment. These roles are critical in ensuring equitable service delivery and economic sustainability in areas with growing Hispanic populations.

Native American (American Indian & Alaska Native) Community

• Total Government Employment: 293,394
• Annual Wages Generated: $19,085,733,314
• Total Economic Output: $47,714,333,285
• Contribution to U.S. GDP: 0.17%
• Importance: Government employment is particularly crucial for Native American communities, where public sector roles provide stability in regions with limited private-sector job opportunities. Native Americans have significant representation in government jobs in states such as Oklahoma, Arizona, New Mexico, South Dakota, and Montana, where tribal governance and public sector roles are critical economic drivers. Cities with high Native American public sector employment include Albuquerque, Phoenix, Tulsa, Rapid City, and Anchorage, where government agencies, healthcare services, and education institutions provide stable employment. Additionally, counties such as McKinley County (NM), Apache County (AZ), and Shannon County (SD) have some of the highest concentrations of Native American government employees, demonstrating the essential role of public sector work in these regions. These positions support not only individual economic security but also the broader tribal economies, reinforcing the importance of well-funded public institutions in Native communities.

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Asian American Community

• Total Government Employment: 1,163,141
• Annual Wages Generated: $87,663,235,038
• Total Economic Output: $219,158,087,595
• Contribution to U.S. GDP: 0.80%
• Importance: Many Asian American workers in government roles are engaged in highly skilled fields such as education, healthcare, and technology, reinforcing economic prosperity within their communities. Asian Americans have strong representation in public sector employment in key states such as California, New York, Hawaii, Texas, and Virginia, where government roles provide stability and economic advancement. Cities including San Francisco, Los Angeles, New York City, Honolulu, and Washington, D.C. have significant Asian American government workforces, particularly in public administration, healthcare, and scientific research institutions. Counties like Santa Clara County (CA), Queens County (NY), and Fairfax County (VA) also serve as major hubs for Asian American government employees, highlighting the essential contributions of public sector work to regional economies and community development. These roles provide pathways for leadership and economic growth, ensuring continued upward mobility within Asian American communities.

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Native Hawaiian & Pacific Islander Community

• Total Government Employment: 120,608
• Annual Wages Generated: $8,277,507,175
• Total Economic Output: $20,693,767,938
• Contribution to U.S. GDP: 0.08%
• Importance: Public sector employment plays a key role in sustaining economic security and community development for NHPI workers, particularly in Pacific territories and urban centers. Native Hawaiian & Pacific Islander (NHPI) Americans have a high representation in public sector jobs in key states such as Hawaii, California, Washington, Nevada, and Oregon, where government roles provide essential economic stability. Cities including Honolulu, San Francisco, Seattle, Las Vegas, and San Diego have substantial NHPI public sector workforces, particularly in state and local government roles, healthcare, and military-related employment. Counties like Honolulu County (HI), Clark County (NV), and King County (WA) serve as major employment hubs for NHPI government workers, highlighting the essential role of public sector employment in maintaining community stability and economic development. Ensuring a well-supported NHPI public workforce strengthens these communities by providing steady income, upward mobility, and vital public services that support broader economic growth.

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Multiracial & Other Minority Communities

• Total Government Employment: 354,463
• Annual Wages Generated: $24,032,122,634
• Total Economic Output: $60,080,306,585
• Contribution to U.S. GDP: 0.22%
• Importance: Public sector roles offer multiracial employees opportunities for economic stability and social mobility, benefiting diverse communities nationwide. Among these groups, Arab & Middle Eastern Americans, as well as other multiracial minorities, have a significant presence in public sector employment in states such as Michigan, California, New York, Texas, and Illinois, where government jobs provide access to stable income and long-term career growth. Cities including Dearborn (MI), Los Angeles (CA), New York City (NY), Houston (TX), and Chicago (IL) have high concentrations of multiracial and Arab & Middle Eastern American government employees, particularly in civil service, public administration, and law enforcement. Counties such as Wayne County (MI), Kings County (NY), and Cook County (IL) also serve as key hubs for these communities, where government employment fosters local economic development and provides critical services that strengthen community infrastructure. The stability of these roles is crucial for ensuring equitable economic opportunities and upward mobility for these diverse groups.

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Broader Economic Impact and Community Strength

Beyond direct wages, government employment contributes to:

• Tax Revenue: Public sector jobs generate substantial federal, state, and local tax contributions that fund essential services such as education, healthcare, and infrastructure. Based on estimated tax rates, government employees contribute significantly to tax revenue by racial group:
• African American: $61.47 billion
• Hispanic/Latino American: $46.23 billion
• Asian American: $21.92 billion
• American Indian & Alaska Native: $4.77 billion
• Native Hawaiian & Pacific Islander: $2.07 billion

These tax contributions support public services, strengthen community infrastructure, and drive further economic development. Additionally, properly staffed governmental agencies operating in minority communities play a crucial role in economic stabilization and development. They provide essential services such as education, public health, housing assistance, workforce training, and small business support, creating a foundation for long-term economic growth in underserved areas. Ensuring adequate government staffing in these regions enhances access to critical resources, reduces disparities, and fosters a more resilient local economy.?

• Consumer Spending: With stable incomes, government employees contribute significantly to local businesses, housing markets, and service industries. Public sector employment enables higher homeownership rates, particularly among minority groups, as stable wages and benefits make mortgage qualification more accessible. Studies show that homeownership rates among government employees are typically 10-15% higher than those in private sector employment. Additionally, government workers allocate a substantial portion of their income—estimated at 30-40%—toward local businesses, further stimulating economic growth within their communities. The consistent financial stability offered by government employment ensures sustained spending patterns that bolster small businesses and contribute to local economic resilience.
• Wealth Building: Competitive salaries and benefits, including pensions and retirement plans, help workers accumulate wealth and invest in future generations.
• Social Mobility: Many minority workers in government jobs experience career growth that translates into long-term economic security and upward mobility for their families. Studies indicate that a significant percentage of minority executives in the private sector have backgrounds in government employment, where they gained critical leadership experience, policy expertise, and management skills. Additionally, government employment provides a strong foundation for entrepreneurship, with many minority business owners citing their public sector experience as instrumental in preparing them for business ownership. Research suggests that minority public sector employees are twice as likely to transition into executive roles in the private sector compared to those without government experience. Furthermore, former government employees who start businesses have a 15-20% higher success rate in sustaining long-term profitability compared to first-time entrepreneurs without public sector backgrounds.

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Conclusion: The Need to Preserve and Strengthen Public Sector Employment

The economic contributions of minority government employees are substantial and far-reaching. Protecting and expanding access to public sector opportunities is not just about job preservation, it is about safeguarding economic progress and ensuring continued community resilience. Policymakers and stakeholders must recognize the vital role of government employment in fostering financial security, wealth equity, and overall economic strength in minority communities.

[1] Source: https://www.fedscope.opm.gov/

[2] https://www.defense.gov/Resources/Insignia ?& https://datausa.io/profile/naics/military-reserves-or-national-guard?compare=active-duty-military

[3] The State and Local Government Information Report (EEO-4), is a mandatory biennial data collection that requires all state ?and local governments with 100 or more employees to submit workforce demographic data including data by race/ethnicity, sex, job category, and salary band.

[4] U.S. Census Bureau, U.S. Department of Commerce. "State and Local Government Employment and Payroll Data: US and States: 2017 - 2023." Public Sector, PUB Public Sector Annual Surveys and Census of Governments, Table GS00EP01, 2023