I assume that you are asking about the graph of this name from the AP US Government and Politics exam from 2003.
The two most important trends in this graph are A) the increase in the size of state and local government and B) the lack of change in the number of civilian employees of the federal government. What these trends show us is that state and local governments have been becoming more and more important. Of course, some of this is because federal money is sent back to the states in the form of block grants. In addition, federal mandates have required the states to do various things for which the states must hire employees.
Thus, the graph shows a major increase in the size of the state and local governments relative to the federal government. However, this does not necessarily mean that the federal government has become less important in our system of federalism.