The federal government may give a 5.2 percent raise for federal employees, the most significant increase since Jimmy Carter was president. According to an executive order signed Friday by President Biden, the average boost will go to 2.2 million executive branch employees, with those in the District of Columbia and Baltimore area getting the most significant amount.
The 5.3 percent increase is the most significant one-year increase to federal salaries in history after Biden appealed for a higher salary in November 2017. This year’s raise is separate from the cost-of-living adjustment, or COLA, paid in January to federal retirees.
Pay Raising And COLA For Retirees
The President’s proposed federal pay raise will come as a relief to many retired workers. It is also a good sign that the unemployment rate is declining.
Unemployment has dropped to 3.9%, a record low in the first year of a presidential term. It is the first time the unemployment rate has fallen below 4% in a single year since 1969, when Jimmy Carter became president.
This decline in unemployment has been driven largely by the labor market. Employment has climbed by over a quarter million jobs in the past 12 months and continues to rise, with a solid job growth outlook.
Manufacturing Jobs — During the campaign, Biden often touted the “backbone” of American manufacturing, referring to the millions of jobs that are found there. And between January and December, the number of manufacturing jobs rose 3%, according to Bureau of Labor Statistics figures.
Wages — Earnings went up 5.2% during the first 11 months of Biden’s presidency, but inflation ate that up. Real weekly earnings, adjusted for inflation and measured in dollars valued at their average level in 1982-84, declined 2.2% during that period.
Inflation has been a big concern for the President and his allies in Congress, who are worried that a strong economy could make inflation worse. They argue that the high-inflation environment must be addressed before it erodes the purchasing power of Americans’ paychecks.
Attrition Among Federal Employees In 2021
The federal government has experienced higher attrition rates during the past two years than it has in previous decades, a fact that may affect employee satisfaction. It is important that the federal government find ways to encourage employees to remain in their positions.
Attrition Among Federal Workforce Age Groups
Young people are more likely to leave the federal workforce than older workers, and the rate for federal employees under 30 was 8.5% in fiscal 2021, a full percentage point higher than the government-wide average. This is a good indication that the federal government needs to continue working hard to attract and retain younger talent.
It is also important to note that the federal attrition rate in the Washington, D.C., area was higher than the rest of the country, despite the region’s larger population. As a result, agencies that do business outside the capital should strive to lower their attrition rates, especially in states that have significant portions of their workforce located outside the area.
