Department of Labor

Department of Labor Spending in Billions of Constant 2014 Dollars

The Department of Labor’s budget is dominated by the costly unemployment insurance system. It also runs numerous employment and job training programs, which are generally ineffective and duplicative of services available in the private sector. And the department oversees an array of labor union laws and workplace regulations that restrict freedom and are costly to workers and businesses.

The department will spend $77 billion in fiscal 2014, or $626 for every U.S. household. It employs 17,000 workers.

Spending Cuts Summary
Downsize This!
  • Failures of Unemployment Insurance. The UI system is costly to taxpayers and creates numerous economic distortions. Federal involvement should be ended and the states left free to design their own systems.
  • Employment and Training Programs. Federal programs for unemployed workers have never worked very well, are relatively little used, and are little needed because private markets provide many alternatives.
  • Reforming Labor Union Laws. Federal union laws that mandate exclusive representation, union security, and prevailing wages are costly to the economy and restrict individual freedom. They should be repealed.
  • Trade Adjustment Assistance. This program provides benefits for certain workers put out of their jobs by foreign trade, but it has no sound basis in economics.
  • Minimum Wage Laws. These laws are supposed to help workers, but the evidence suggests that they damage the economy and are particularly harmful to less-skilled workers.

"What is euphemistically called collective bargaining by union leaders and 'pro-labor' legislation is bargaining at the point of a gun . . . It is a dictate forced upon the employer . . . The issue is not the right to form associations.”

Ludwig von Mises, Human Action, 1949.