Ongoing Shutdown Continues to Limit Agencies, Hinder Workers

Federal agency workers who are not aligned with the Trump administration might permanently lose their jobs during the ongoing federal government shutdown. Already, federal agencies are temporarily scaling back, including departments and agencies HR professionals interact with on a regular basis, as the work of hundreds of thousands of federal workers has been suspended. 

SHRM research shows that 37% of the non-U.S. Postal Service federal workforce — up to 860,000 employees per day — could face furloughs, leaving many households suddenly without income and unsure how they will meet basic needs such as housing and food, said Emily M. Dickens, J.D., chief of staff, head of government affairs, and corporate secretary at SHRM. Working caregivers are particularly vulnerable, with 59% expressing concern about finances, 51% about job stability, 49% about food security, and 47% about their mental health — significantly higher rates than noncaregivers.

The impact would not stop at federal employees. Even a brief shutdown could disrupt daily operations for 25% of organizations and put 23% of their annual financial goals at risk. A shutdown lasting more than a week would affect 64% of organizations' operations and 49% of their financial objectives, Dickens added.

"For HR professionals, a shutdown compounds existing challenges," she said. "They will be on the front lines managing furloughs, processing sudden changes in payroll, addressing employee anxiety, and ensuring continuity of essential operations — often with limited information and under tight timelines. HR teams will also face increased demand for mental health support, leave management, and workforce planning as both federal and private-sector employees experience uncertainty."

The U.S. Department of Labor (DOL) has suspended much of its operations during the shutdown but some of its work is ongoing, according to the Federal News Network. The DOL has a total of nearly 13,000 employees, of whom approximately 600 are exempted and about 2,000 are excepted. Exempt employees are paid as normal; excepted employees also continue working in their essential roles but without pay until the shutdown ends. 

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Activities at the DOL that would continue during a shutdown include entitled workers' benefits, child labor investigations, mine and other hazardous workplace investigations, unemployment insurance benefits support, and Jobs Corps centers operations.

Job Employment Data Delayed

The DOL will hold no administrative hearings, and has shuttered multiple subagencies, including the Bureau of Labor Statistics (BLS) and the Office of Federal Contract Compliance Programs, notes Littler. 

Usually, the BLS issues the previous month's job employment data on the first Friday of the month. But not this past Friday, reported NBC News, raising planning concerns for businesses and the Federal Reserve alike. It was the first time the report was delayed in 12 years, according to The Washington Post, which noted that stakeholders now don't have a clear idea of whether the job market is still cooling. 

"As soon as this government opens ... we want to get these numbers out," Labor Secretary Lori Chavez-DeRemer told Fox Business. 

If the shutdown lasts past mid-October, it could also delay the monthly Consumer Price Index.

Shutdown's Impact on Other Agencies

Equal Employment Opportunity Commission (EEOC) litigation will be paused during the shutdown unless a court requires the case to proceed, the agency's website states. Mediations scheduled to occur during the shutdown are cancelled and will be rescheduled when the government reopens. While charges will be accepted, they will not be investigated by the agency during the shutdown. EEOC staff will not be available to answer questions from the public or respond to correspondence or emails from the public. EEOC outreach and education events will be cancelled during the shutdown.

The National Labor Relations Board (NLRB) will cease all nonessential activities. It will not process new representation petitions or charges. The NLRB also will pause administrative litigation and not hold hearings.

Hub Page: Navigating the 2025 Government Shutdown 

Many critical employment-based immigration services are fee-funded by users and will continue to operate during the U.S. government shutdown, but other essential parts of the system have come to a stop, creating a significant disruption overall.

Courts, which have independent funding, will remain open for now.