States Will Return to Hiring; Federal Government Will Stop

A hallmark of the poor economy of the last few years has been a significant loss of government jobs. According to the Bureau of Labor Statistics, “Over the past 12

months, the sector has lost 276,000 jobs, with declines in local

government; state government, excluding education; and the U.S. Postal

Service.” Contrary to what many Republicans claim, government, including the federal, state, and local level, has shrunk considerably in the past few years. This has held back the economy, especially the labor market. However, that may be ending.

The main reason behind state and local government job losses has been declining tax revenues due to the poor economy. Because most states are required to balance their budgets every year, jobs have been lost to seemingly unending budget cuts. But that may be changing. Tax revenues have started to increase, even in states like Michigan, a picture of poor economic health for much of the last decade.

With the economy looking on track to recovery, budget cuts (and job losses) at the state and local level should end and employment is likely to grow. This is good for many students who will be looking for jobs in the next few years, as governments employ a diverse set of workers. The federal government is another story. The Bureau of Labor Statistics projects the federal government to shed more jobs than any other industry over the next decade. That makes sense considering the dire need to lower the federal budget deficit and keep the national debt from increasing too much.

Overall, government employment is good for the economy and for workers. It provides many with steady, benefitted jobs they may not be able to find in the private sector. The future picture is mixed, however. Those considering working for government should be aware of the future of the industry.


Landon J. Latham
Career Educator