Deep Cuts Remain; State and Local Govt. Jobs Down Over 1.3 Million

  • State and local government employment is still down by 1.3 million jobs compared to the pre-pandemic level. The last time state and local employment was this low was 2002.

  • Government employment results differ widely, regionally and state-by-state. This is likely a leading reason it has been difficult for lawmakers to build a widely-accepted consensus for direct state and city aid.

  • Now that there is the potential for direct, unencumbered aid for state and local governments, we may see employment recover, but this depends upon the timing and messaging.

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