A complete and bald-faced lie.
Yes, this is so evident when one goes to the DMV, or stand in line at TSA security at the airport, or deal with personnel at many VA hospitals, etc., etc.
It isn't where I work, a the Yuma Proving Ground for the US Army. 20 years ago we were nearly all Government workers, my Team had 20 people, and there were few contractors. Now, we are down to 9 people, we produce four times as much product (mostly because of automation), and more than half the workers on post are contractors.
Also, the trend in Government employees is for people with scientific and engineering degrees.
So, as far as I see, there is some truth to this assertion.
Are the government workers overpaid... I often think so. We do get generous benefits, but they are nowhere as generous as those paid to General Motors employees, which I think are outrageous.