States Cutting Jobs, Hurting Economic Recovery

Source: Center on Budget and Policy Priorities, February 7, 2011

Cuts in services at the state and local level continue to act as a drag on economic growth, and will continue to do so in the coming year – unless there is a significant course correction by policymakers.

Friday’s jobs report from the Bureau of Labor Statistic provides the latest evidence. BLS estimates that states, cities, counties, school districts, and other units of government cut another 12,000 jobs in December, bringing to 426,000 the number of jobs lost since August 2008. Here’s the breakdown:

* Local school districts have cut 154,000 education jobs since August 2008.
* Cities, counties, and other local governments have cut 202,000 jobs.
* State governments have cut 69,000 jobs.

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