State and local governments continued expanding payrolls in June, adding about 59,000 jobs as the strength of the US economy bolsters tax collections and they draw on aid from Washington.
The figures, included in the Labor Department’s monthly employment report, show that states and local governments have nearly replaced all of the 1.5 million jobs cut in the early days of the pandemic, when schools closed and many elements of government ground to a halt as the nation went into a lockdown.
The hiring spree has been supported by an influx of tax revenue as rounds of stimulus from Washington triggered an economic rebound, though that revenue has started to ebb as the Federal Reserve raises interest rates to cool growth. Legislation enacted under the Biden administration also provided an unprecedented $350 billion of aid to governments.
“State and local jobs have shown a steady comeback from losses during the COVID-19 pandemic, reflecting generally flush budgets pumped up by a strong economy and record amounts of federal pandemic aid,” said William Glasgall, senior director at the Volcker Alliance, in an emailed statement.
Still, overall state and local payrolls remain about 220,000 jobs below where they stood before Covid hit. Governments have been struggling with stubborn vacancies amid a labor-market shortage and have tried to use signing bonuses and raises to lure workers.
Job openings at the state and local level were close to record highs as of May, according to Bureau of Labor Statistics data from May.
--With assistance from Amanda Albright.
