Can the U.S. replace the surge of retiring Baby Boomers or will more jobs in government be outsourced to corporations?

2009 is expected to be the peak year for Baby Boomer retirements from jobs in government, says the federal Office of Personnel Management. No less than 61,000 workers are expected to leave that year.

Big Rewards for Jobs in Government

Consequently, agencies like the Defense Department, Social Security Administration, and the Commerce Department are offering attractive incentives for new hires. New college grads are being offered signing bonuses of up to $5,000 or subsidized advanced college degrees. Long time workers are also cashing in on student loan forgiveness opportunities if they've served for 10 years or more.

But the agencies' efforts aren't expected to recruit or retain as many workers as the number that are expected to leave, reports a recent Business Week article. Jobs in government pay less and require personal sacrifice. The succeeding generation may be less likely to be attracted to a life of public service than the Baby Boomers were.