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Federal government shutdowns: implications for employees and agencies

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In 2023, as the U.S. government moved towards another shutdown, USC Price faculty were researching government shutdown repercussions on government employees and federal agencies. Their findings suggested that the effects of a shutdown could include negative impacts on job retention and morale.

Government shutdown repercussions: impact on federal workers

According to Associate Professor William G. Resh, lead author of a study published in Governance, shutdown-exposed employees often grapple with administrative dysfunction. This includes overwhelming workloads, missed deadlines, diminished customer service, and abandoned projects. 

Researchers found the 2013 federal government shutdown notably dampened morale as furloughed workers felt their contributions were deemed non-essential. However, surprisingly, the 2019 shutdown didn’t significantly impact morale. Professor Resh, who teaches in the MPA Online program, suggests this could be a result of employees feeling more prepared for this subsequent shutdown or simply that those who were dissatisfied had already left by 2019.

Federal agency job retention

Resh’s ongoing research suggests that shutdowns prompt a surge in job loss. For instance, a federal agency with 10,000 employees may lose an additional 500 workers post-shutdown. Resh emphasizes the importance of addressing the morale and retention of civil service workers to prevent dysfunction within governmental institutions.

Causes and effects of federal government shutdowns

Government shutdowns are a result of budget disagreements between Congress and the President and have become more frequent.  Driven by “anti-statist” populism, politicians often appeal to anti-government sentiments. Shutdowns disrupt essential services and policymaking, with some agencies affected more than others.

Resh’s research, drawing on the Federal Employee Viewpoint Survey, reveals that shutdown intensity correlates with negative effects on policy implementation. More extensive furloughs lead to greater disruptions, affecting tasks ranging from email backlog clearance to critical audits and scientific tests.

As Resh explains, shutdowns abruptly halt operations which results in extensive catch-up efforts. While contingency plans may mitigate some disruptions, the aftermath of a shutdown lingers. This impacts morale, productivity, and turnover. Addressing these issues is vital for ensuring the resilience and efficacy of government operations.

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