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Montana Department of Labor and Industry responds to federal layoffs

by HAILEY SMALLEY
Daily Inter Lake | March 16, 2025 12:00 AM

Twenty current and former federal workers gathered at state Department of Labor and Industry offices across Montana at 9 a.m. on March 12 for a “Rapid Response Event” aimed at “assist[ing] those impacted by federal layoffs.” Another 23 people attended virtually.

In all, they represented a negligible percentage of the 10,129 federal workers that live in Montana. 

The conference room at the back of the Job Services office in downtown Kalispell was nearly vacant. Dozens of folders stuffed with flyers advertising job services remained unopened. 

“It’s hard for people to seek [the department’s] support right now,” explained one of the two federal workers that attended the Kalispell event. 

The worker asked that their name and job title not appear in print. Despite being among 360 other Montana Forest Service workers fired in February, they had been temporarily reinstated to their job position and were not authorized to talk to the press.  

While thrilled to return to work, the Forest Service employee said that the reinstatement had also created more uncertainty. The future state of their employment hinges on the outcome of a federal lawsuit, alleging that the mass termination of probationary U.S. Forest Service workers was unlawful. A federal board is expected to hand down a verdict by April 18. 

Until then, their job is akin to Schrödinger's cat, both existent and non-existent. That makes it hard to do things like file for unemployment or send out resumes. 

“It’s overwhelming for me still to try to look for a job,” they said. 

The Forest Service worker hoped the event might provide some answers. After a series of presentations from state staff, they typed a question into the chat, asking whether employees affected by the lawsuit should file for unemployment. A flood of similar questions filtered onscreen, asking about the language in termination letters, the documents required to file for unemployment and the impending threat of a government shutdown.  

Nearly all the inquiries were met with similar catechisms about reviewing things on a “case-by-case basis.” A morose sense of humor crept into the conference room. 

“It’s going to be years before this gets sorted,” said the second Kalispell attendee, an employee of U.S. Agency for International Development. 

The Department of Labor and Industry has helped workers navigate mass layoffs before. Last year, about 250 lumber workers found themselves unemployed after two mills shuttered in quick succession. Another 700 workers were laid-off a few months later when the Sibayne-Stillwater mill downsized. Both times, the state agency hosted similar rapid response events to help those affected file for unemployment, revamp resumes and find new jobs. 

Those efforts benefited from $5.5 million worth of federal grants administered through the U.S. Department of Labor. The federal government reportedly froze some of those grant funds in late February, making future payments uncertain.  

In a March 6 statement, the department also acknowledged that federal employees may face extra challenges navigating more traditional employment routes.  

“Unlike many Rapid Response events the agency hosted over the last year, the layoff of federal workers requires specialized support to translate the skills and duties of a federal employee to the private sector or work in other public sector and nonprofit professions,” reads the statement. 

The state Labor Department’s existing challenges could multiply, as Thursday marked the deadline for several agencies to submit “Agency Reorganization Plans” that include measures to reduce full-time positions.  

There is no information as to how these plans may affect Montana workers, but there are new additions to the state Labor Department’s website. A page titled “Federal Worker Resources” now lists the number for a hotline for federal workers seeking help with unemployment insurance and other benefits as well as a dropdown menu for “Upcoming Rapid Response Events.”  

The department was unable to provide the Daily Inter Lake with comment by its print deadline. 

Reporter Hailey Smalley can be reached at hsmalley@dailyinterlake.com or 758-4433.