Sunday, June 3, 2012

Government is the Problem

When politically seeking causalities
For our tepid employment realities,
It seldom is heard
How shrinkage occurred
At states and municipalities.

Friday's Non-Farm Payroll report of 69,000 jobs added was shockingly lower than the consensus expectation of +150,000. The disappointment dominated stock markets, news programs and weekend punditry. Many repeated the question: what will it take to get companies hiring again? Seemingly lost in the discussion was the fact that, while private employment rose slowly, government employment actually continues to fall. The Calculated Risk blog schools us:
So far in 2012 - through May - state and local government have lost 7,000 jobs (8,000 jobs were lost in May alone though). In the first five months of 2011, state and local governments lost 126,000 payroll jobs - and 230,000 for the year. This graph shows total state and government payroll employment since January 2007. State and local governments lost 129,000 jobs in 2009, 262,000 in 2010, and 230,000 in 2011.
Remember folks, jobs in the public sector are just as important for the economy as those in the private sector.

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