The numbers don't appear to support that. Federal government employees haven't fluctuated very much over the past 40 years.
https://www.statista.com/statistics/204535/number-of-governm...
https://www.statista.com/statistics/204535/number-of-governm...
Plus, how much of stuff it used to do internally 40 years ago are now done through subcontractors and delegated to private companies? Meaning even that number is now doing less than 1980?