LLNL just did a huge layoff last year. And what happens when the Democrats get into office again? Research is "corporate welfare", and has to compete for funding against "people with needs". Have you tried applying for an NSF grant lately?
Government funding depends on the budget priorities of those in power, and to date, the Bush Administration hasn't had the time to correct the disaster that was the Clinton Administration.
I have been with my particular agency for 25 years and we have yet to lay people off. We have had cutbacks but we solved those with voluntary buyouts and normal attrition. During the Clinton administration we hired almost no one (he didn't like us) and now we are paying catchup in a huge way.