Renewed State and Local Government Job Pain, More Expected
Overall nonfarm payroll data slightly surprised to the upside last week, marking the sixth consecutive month of job gains.
State and local governments have only added back jobs in three of the last six months. In the last two months (September/October), state and local governments have shed a total of 317k positions.
We expect that additional state and local government job losses will mount without a very clear indication from the federal government that relief is on the way.