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The U.S. government has officially shut down as of 12.01 a.m. October 1, 2025, bringing many public services to a grinding halt as expected.
An estimated 750,000 federal employees are being furloughed. This is due to a funding crisis, with neither left-wing Democrats or right-wing Republicans able to reach a consensus for government funding.
Agencies and programs such as The National Flood Insurance Program, federal National Parks, NASA, and the CDC have been significantly impacted as far as federal employment is concerned. Workers and companies operating in the tourism industry, and even air traffic controllers and TSA are being affected. Some vital workers (such as airport workers) will be required to report to work without pay, which could lead to transport delays as employees resist and call in sick or otherwise.
This federal employment upheaval is not only affecting government workers; it’s having a knock-on effect on the companies that depend on their work too. And on a larger scale, this extends to more than a funding crisis–it’s a leadership crisis.
As a public sector manager or leader, or a business leader in the private sector whose operations are heavily tied to federal workers, it falls on you to figure out how to lead and operate in times of crisis, with minimal resources, when everyone is facing job uncertainty, low morale, and slowed-down momentum.
So how exactly do you steer your teams through times of crisis?
How To Lead In This Time Of Crisis
If you’re also a federal worker, of course you would’ve already identified which roles on your team are being furloughed versus the employees who are the exception to the rule, (those required to continue working despite no pay).
Having employees work in uncertain conditions with delayed pay can weaken morale and motivation. So to keep them going, take these steps:
1. Recognize Your Team
Spend time appreciating their work, both publicly (for example, on LinkedIn), and in team and department chats on Teams and Slack.
2. Daily Check-Ins
In addition to celebrating their efforts, check in with your employees daily to find out on an individual and team level how they are coping, and what extra support or resources they may need, which you’re able to offer or at the very least make a referral to.
3. Try Short-Term Quick Fixes
Working with fewer resources means that your team will be under significant resource strain. So try to identify short-term fixes using AI where possible, for example, to reduce load and ease pressure. Reprioritize projects and deliverables given reduced capacity.
4. Communicate Regularly And Clearly With Updates
Communicate clearly with all relevant stakeholders. One of the biggest downfalls of leaders is lack of clear and on-time communication. So, if you can regularly keep both your teams and stakeholders in the loop, you’re demonstrating that you’re actively working towards progress, given the uncertainty of the situation, and this fosters trust.
At the same time, don’t be afraid of the unknown. Part of the greatness of being a leader is accepting that you’re vulnerable and your job is on the line, just like everyone else’s. Be honest and transparent. Don’t give false reassurance. Tell them what you know and be frank about what you do not know.
Explain in detail all the intricacies of the shutdown. And even if there is no change or updates yet, you can still provide an update such as, “We haven’t heard anything yet, but feel free to reach out to me if you have any questions.”
5. Support Your Team’s Wellbeing
Another way you can support your team is through offering guidance and referrals for financial support, for example, unemployment compensation or benefits eligibility. Keep your teams out of the dark so they know where they stand and they can be in the best possible position for recovery.
6. Show Empathy
And most importantly, lead with empathy.
In a crisis, it’s not business as usual. As leaders, we’re trying to hold everyone and everything together, but at the same time, our tones should reflect the gravity of the situation. So, remember to speak and act with compassion and consideration.
7. Review/Create Business Recovery Plan
And if you have any downtime, make use of these moments to begin drafting or reviewing business recovery plans so that you’re not madly rushing into the work week when the crisis is over.
This enables you to have a clear sense of direction as to what projects need to be resumed and need attention immediately, what backlogs need to be worked through, who will be allocated to deal with backlogs and in what order, etc.
8. Develop Resilience
And don’t forget, part of being a leader during these challenging times in the job market is to always plan ahead and build resilience. Resilience is an in-demand skill according to the World Economic Forum, being listed as the second-most necessary skill for 2025 in their Future of Jobs report.
You’ll develop it as you get used to crises impacting or threatening your organization and line of work. So to develop resilience, when this is all over, journal exactly what you did and use it as an experiment for the future, reflecting on what worked and what didn’t. Build and strengthen your scenario planning for times of crisis so that even when things happen which are out of your control as a leader or manager, you and your team, and your stakeholder partners, do not spiral out of control as much as lies within your power.
When this government shutdown is all over, people may forget the press releases. But they won’t forget how you led.
They will remember you for how you showed up and led with honesty, and gave them something to hold onto and believe in, even when their paychecks stopped and no one else had answers. They’ll appreciate your transparency, even if you had no clear solutions except an update and a check-in to see if they’re OK.
It’s in times of crisis that your legacy as a leader and people manager is built.
