	Background

The purpose of this report is to provide data on the size and composition of USPS's workforce between FY1995 and FY2014. Reforms to the size and composition of the workforce have been an integral part of USPS's strategy to reduce costs and regain financial solvency, particularly after the onset of substantial revenue losses in FY2007. USPS Workforce Size and Composition

		Workforce Size

Between FY1995 and FY2014, the size of USPS's workforce decreased 29.4%, from 874,972 employees to 617,877 employees ( Table 2 ). Employment Trends: Career and Non-Career Employees

USPS categorizes its workforce into two types of employees: career and non-career. Career employees serve in permanent positions on a full-time or part-time basis and typically receive full federal benefits. Non-career employees, in contrast, serve in time-limited or otherwise temporary positions on a full-time or part-time basis. Of these categories, 10 had fewer employees in FY2014 than in FY1995. USPS stated the increase in the number of headquarters employees is primarily attributable to the agency's efforts to centralize certain local, district, and area functions at the headquarters level. Since FY2011, USPS has established three new non-career employee categories: Postal Support Employees (PSEs), City Carrier Assistants (CCAs), and Mail Handler Assistants (MHAs). Efforts to Reduce the Size and Cost of the Workforce Between FY2007 and FY2014

In recent years, the USPS has experienced significant financial challenges. As USPS's finances have deteriorated, its ability to absorb operating losses has diminished. One strategy has been to reduce the size and cost of the USPS workforce, as personnel costs comprise the majority of USPS's expenses. Attrition and Separation Incentives

USPS has reduced its workforce size through voluntary attrition and separation incentives to retire or resign. Between FY2010 and FY2014, 55,473 employees accepted a separation incentive ( Table 3 ). On January 9, 2015, however, USPS implemented a reduction in force for 249 postmasters who did not accept a separation incentive offered in FY2014. Increased Use of Non-Career Employees

USPS has also increased its use of non-career employees in an effort to contain costs. The number of non-career employees increased by 28.1% between FY2007 and FY2014, from 101,167 to 129,577. Employees in these three positions can often perform the full range of duties undertaken by their career counterparts, but at lower wages. USPS's use of certain non-career employees is governed by postal labor union contracts, which limit the number of non-career employees that can comprise the total USPS workforce. The 2011-2016 contract, however, raised the limit to 15% of the total number of career carriers in a district.
This report provides data from the past 20 years on the size and composition of the U.S. Postal Service's (USPS's) workforce. Reforms to the size and composition of the workforce have been an integral part of USPS's strategy to reduce costs and regain financial solvency, particularly between FY2007 and FY2014. Since 2007, USPS has experienced significant revenue losses that have affected its ability to manage its expenses. Personnel costs are one of the primary drivers of USPS's operating expenses. As such, USPS has employed strategies to reform the size and composition of its workforce in an effort to cut personnel costs, primarily through attrition and separation incentives and increased use of lower-cost employees. These strategies reduced personnel expenses between FY2013 and FY2014. The sustainability of these reduced expenses and their overall impact on USPS's ability to regain financial solvency, however, is unclear.
The size of the USPS workforce has declined in the past 20 years. The number of employees has dropped by 257,095 (29.4%) in the past 20 years, from 874,972 in FY1995 to 617,877 in FY2014. USPS, however, had 163 more employees at the end of FY2014 than it did at the end of FY2013. Declines in workforce size between FY2010 and FY2014 were driven, in part, by USPS's efforts to reduce its workforce size through attrition and separation incentives. Between FY2010 and FY2014, 55,473 career employees accepted a separation incentive to retire or resign early. On January 9, 2015, USPS instituted a reduction in force for 249 postmasters who did not accept a separation incentive offered in 2014.
The composition of USPS's workforce has also changed over the past two decades. USPS categorizes its workforce into two types of employees: career and non-career. Career employees serve in permanent positions on a full-time or part-time basis and typically receive full federal benefits. Non-career employees serve in time-limited or otherwise temporary positions and can often perform the full range of duties of career counterparts at lower wage rates, which might lower personnel costs.
USPS has increased the number of non-career employees in an effort to reduce personnel costs, particularly since FY2011. Between FY2011 and FY2014, the number of non-career employees increased by 46.1%, from 88,699 to 129,577 employees. The influx in non-career employees since FY2011 is primarily attributable to the establishment of three new non-career positions: postal support employees, city carrier assistants, and mail handler assistants. Labor union contracts governing these positions, which went into effect in 2011 and 2013, effectively raised the total number of non-career employees that can comprise the USPS workforce. Career employees, however, continued to comprise the majority of the total workforce in FY2014 (79%).
This report will be updated as events warrant.