Where is the post office losing money

Its current resources are more than enough to enable it to deliver ballots and handle any election-related mail, according to Kevin Kosar, an executive at the R Street Institute think tank who spent over 10 years covering postal issues for the Congressional Research Service. The bill basically says quit doing that, which is not good for the Postal Service. Kosar, who acknowledged the Postal Service has major problems, says Congress should instead try to enact actual changes that help the Postal Service succeed in the 21st century.

Congress currently requires the Postal Service to deliver paper mail six days a week even as demand falls, resists the closure of underused post offices and sorting facilities, generally prohibits USPS from raising prices beyond the rate of inflation and requires it to use a largely unionized workforce. All of which amount to high costs, according to Kosar. But it also faces a marketplace where changes in digital advertising and communication have led to a decline in first-class mail , typically its largest source of revenue.

USPS has seen its parcel delivery service increase steadily in recent years and is now nearly on par with its first-class mail in terms of operating revenue. However, despite increases in parcel delivery, first-class and marketing mail continues to make up the vast majority of USPS activity in terms of volume. Use precise geolocation data.

Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Share Flipboard Email. Issues The U. Legal System U. Foreign Policy U. Package delivery increased sharply during the pandemic It seems like the more the Postal Service sells, the more they lose.

Last year, the agency hired , employees — the most in its history — for a net gain of 54, employees on payroll.

For perspective, USPS hired 40, employees in ; 38, employees in ; and 26, employees in , according to Freedom of Information Act requests filed by our auditors at OpenTheBooks. In fact, the postmaster general out-earns actual U. DeJoy and Brennan have plenty of company. Nearly employees have been on the job for at least 50 years; 8, for at least 40 years; 76, for at least 30 years; and , for at least 20 years.

Post Office defenders might suggest that the USPS could lean on its stable of veteran workers to help generate best-in-class ideas to help balance the books. In , the executive suite tried this. A post office spokesperson responded to our comment request and provided additional clarification.