Addressing Workforce Challenges at the Maritime Administration: Insights from GAO-25-107460
The Government Accountability Office (GAO) has released a report, Maritime Administration: Actions Needed to Help Address Workforce Challenges (GAO-25-107460), which sheds light on pressing workforce issues within the Department of Transportation’s Maritime Administration (MARAD). The report outlines key challenges MARAD faces, assesses current efforts to address these issues, and evaluates the agency’s strategic workforce planning. As MARAD plays a crucial role in fostering, promoting, and developing the U.S. maritime industry, its workforce planning and execution directly impact national security and economic stability.
MARAD has experienced significant budget growth, approximately 314% from fiscal years 2015 through 2024, yet continues to struggle with staff shortages, high turnover, and a growing number of retirement-eligible employees. As of September 2024, the agency had a 12.3% vacancy rate, with 116 vacancies out of 941 authorized full-time positions. Additionally, MARAD separated 235 more employees than it hired over the past decade, exacerbating the workforce gap. Looking forward, the percentage of retirement-eligible employees is projected to rise from 24% in 2024 to 43% by 2029, putting further strain on MARAD’s ability to fulfill its mission.
Recognizing these issues, MARAD has undertaken efforts to address workforce challenges. The agency has increased the use of hiring flexibilities, engaged employees to improve retention, and initiated the development of a strategic workforce plan. In July 2024, MARAD hired a contractor to create a comprehensive workforce strategy, which is expected to be completed by September 2025. This plan aims to identify workforce competencies and skills gaps while formulating strategies to recruit and retain talent. However, the GAO found that MARAD has not yet fully implemented key strategic workforce planning principles, particularly regarding the assessment of future skill needs.
One of the most pressing concerns highlighted in the report is MARAD’s difficulty in identifying and closing workforce skill gaps. While individual program offices have recognized emerging needs, such as expertise in cybersecurity and artificial intelligence, the agency has not yet determined an overarching strategy to evaluate and address these gaps. Without a forward-looking approach, MARAD risks being unprepared for evolving challenges in the maritime industry.
The GAO also found that staffing shortages are impacting MARAD’s ability to carry out critical programs. For example, the Office of Strategic Sealift, which is responsible for managing the National Defense Reserve Fleet, has struggled with understaffing. One employee is currently responsible for overseeing the Maritime Security Program, which involves managing 60 ships and approximately $318 million in funding. Additionally, staff shortages in the Office of Ports & Waterways have resulted in grant managers handling workloads well above recommended levels. Officials in multiple MARAD offices reported that vacancies have led to inefficiencies, delayed projects, and an inability to respond quickly to national security needs.
Despite efforts to improve hiring and retention, MARAD continues to face hurdles in filling vacancies. Officials noted that the hiring process is often slow, leading to the loss of qualified candidates who accept other job offers before MARAD can make an official offer. The agency has attempted to address this by expanding the use of direct hire authorities and offering pay incentives, but these measures have not been sufficient to resolve staffing shortfalls.
To address these workforce challenges, the GAO has made four key recommendations. First, MARAD should ensure that managers, employees, and stakeholders are actively involved in the development of the strategic workforce plan. Second, the agency must assess critical skills and develop a strategy to address anticipated skill gaps. Third, MARAD should build internal capabilities to support workforce strategies, such as improving hiring processes and streamlining administrative functions. Finally, the agency must establish a system to monitor and evaluate the progress of its workforce initiatives to ensure long-term effectiveness.
For federal contractors, the findings in GAO-25-107460 have significant implications. As MARAD grapples with workforce shortages, there may be increased opportunities for private-sector firms to provide consulting, staffing, and training services to support the agency’s mission. Contractors with expertise in workforce planning, cybersecurity, artificial intelligence, and maritime operations could find growing demand for their services as MARAD seeks to fill skill gaps. Additionally, businesses that provide strategic human capital solutions may play a role in helping the agency streamline its hiring and retention processes.
The GAO report underscores the importance of proactive workforce planning, particularly in agencies with national security responsibilities. While MARAD’s budget has expanded, its ability to effectively utilize those funds is contingent on having a well-staffed and skilled workforce. The agency’s ongoing efforts to develop a strategic workforce plan represent a step in the right direction, but further action is needed to ensure MARAD can meet the maritime industry’s evolving challenges.
This blog post is based on GAO-25-107460: Maritime Administration: Actions Needed to Help Address Workforce Challenges, authored by the U.S. Government Accountability Office. The information provided is for general informational purposes only and does not constitute legal or financial advice. The accuracy of this summary is not guaranteed, and readers should refer to the original GAO report for comprehensive details.
