“Don’t look to state and local governments to prop up the job market.
To the contrary, this cash-strapped sector is set to go on a record-breaking layoff binge when the new fiscal year starts on July 1.
State and local governments are forecast to shed up to 110,000 jobs in the third quarter, the first time the blood-letting has risen into the triple digits, according to IHS Global Insight.
“We’re on a downward path,” said Greg Daco, principal U.S. economist at IHS. “It’s not looking good.”
State and local government employment has been a drag on the economy all year, averaging a loss of 23,000 jobs a month over the past three months. Meanwhile, the private sector has created an average of 180,000 a month during the same period.
In May, public employment shrunk by 29,000 jobs, mostly at the state and local level, while businesses created 83,000 jobs, the Labor Department reported Friday. All told, the sector has lost 510,000 positions since its peak in August 2008.
States still cutting
Though tax revenue is starting to rise, states are still wrestling with multi-billion-dollar budget gaps. Federal stimulus funds helped minimize job cuts until now, but that money essentially runs out on June 30.”
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just yesterday, gov, no backbone Quinn just halted all road contruction…… very odd especially for being the “hub” of tranny#@! confusing. something about to be unleashed, and or in the making, seems like stealthy ness going on,
well that sucks for those who were working….