Federal pay caps continue to challenge recruitment and retention efforts
Update: 2025-09-12
Description
Federal pay caps are contributing to ongoing recruitment and retention challenges in the Defense Department’s blue-collar workforce. A new report from the Government Accountability Office has found that multiple DoD installations are struggling to keep employees in the Federal Wage System, due to longstanding pay limitations set by Congress. GAO also pointed to evidence that the pay rates for blue-collar federal employees have deviated from pay rates in the larger labor market, making it even harder for DoD to compete with the private sector.
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