[Lurkina.n.Learnin]

That is a good point. Also the computer advances during that time period should have had a large impact.

[Wyatt's Torch]

Wouldn’t the same be true (and even more so) of private payrolls which are now at an all time high?

[expat_panama]

contractors doing jobs once done by government employees?

a good point. Also the computer advances

The BLS numbers are employee/payroll lists, suppliers/contractors would be on other lists.  My take is we're seeing a lot of downsizing/outsourcing like everywhere else.  Years ago I could call someone at the IRS for questions, later it was an offshore 'tech support', and now it's all FAQ's online.  What would be nice would be if the savings went to lower taxes, but instead we get tax hikes w/ gov't growth.