Downsizing Isn't Bad News For Everybody

October 1996

EXECUTIVE MEMO

Downsizing Isn't Bad News For Everybody

t turns out that the dreaded downsizing of government hasn't had as dire results as predicted. Far from spawning waves of layoffs, staff squeezing so far has simply boosted the number of retirements and resignations, primarily through buyout programs. Instead of decreasing civil service diversity, the cuts have boosted the percentages of full-time federal jobs held by women and minorities, according to new statistics compiled by the Office of Personnel Management and the Merit Systems Protection Board.

Since January 1993, Uncle Sam has said goodbye to 240,000 workers. In fiscal 1995 alone, 58,563 jobs were cut. Between March 30, 1994, and Sept. 30, 1995, more than 30,000 people took buyouts to retire or resign from non-Defense agencies.

Many observers predicted massive downsizing would hit women and minorities hardest. In fact, between September 1992 and September 1995, the percentage of minorities in the civil service rose from 27 percent to 29 percent and the representation of women grew from 42 percent to 43 percent, says MSPB. That's because white men lost more ground than minorities and women during the three years. The number of non-minorities shrank 11 percent, while the number of minorities fell just 6 percent. And while the number of men in government dropped 11 percent, the figure for women slipped only 8 percent.

The predicted diversity damage didn't materialize because buyouts prevented layoffs. And those taking buyouts were predominantly white (more than 75 percent) and male (more than 60 percent), according to OPM. Women and minorities actually improved their showing in top jobs, OPM reports. In fiscal 1995, the percentage of women in grades GS-13 to GS-15 and in senior executive jobs rose 6 percent, while the percentage of minorities in high-level posts climbed 5 percent.