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Governments Shed More Workers
WSJ ^ | September 6, 2009 | SUDEEP REDDY and CONOR DOUGHERTY

Posted on 09/06/2009 7:23:33 PM PDT by Brilliant

State and local governments stood out as safe havens for workers during the recession's early stages. Now even they are laying off employees as officials rush to cut costs and balance budgets.

August marked the third straight month that state and local governments shed jobs, reflecting cutbacks prompted by declining income and property taxes. They accounted for the bulk of the 18,000 government jobs lost in August -- the U.S. Postal Service cut about 8,500 jobs as well -- and analysts expect the reductions to continue through much of the year.

The widening unemployment rate has a gender gap and men are feeling the brunt of it. WSJ's Jon Hilsenrath says thanks to the struggling manufacturing, finance and construction industries, unemployment for men is the highest its been in 27 years.

Despite billions of dollars in aid from federal stimulus programs, budget cuts across the nation are forcing employers that depend on those funds, such as local nonprofits, to scale back as well. The reductions are forcing more Americans into the ranks of the jobless at a time when private employers are doing little to absorb the 14.9 million people searching for work.

Government employment at the federal level is holding up better because the U.S. can borrow more easily while states and municipalities are often required to balance their budgets. Some of the cost-cutting at the state level is due to temporary shortfalls as receipts from income taxes and sales taxes dip. But a longer-lasting shift is also underway given severe declines in property values...

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy
KEYWORDS: economy; obama; stimulus; unemployment
State governments are cutting back precisely because the federal government is sucking up all the taxable income.
1 posted on 09/06/2009 7:23:34 PM PDT by Brilliant
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To: Brilliant

“Health care is one of the few sectors consistently growing nationwide, adding almost 28,000 jobs in August...”

Obama will fix that.


2 posted on 09/06/2009 7:28:01 PM PDT by Brilliant
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To: Brilliant
If you look at the graph at the web site - ALL LEVELS of government are still ADDING government jobs in this rescission.
3 posted on 09/06/2009 7:28:24 PM PDT by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: Brilliant

California is still hiring state workers.


4 posted on 09/06/2009 7:28:52 PM PDT by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: 2banana
True, soon we will all have government jobs, the paid informant kind.
5 posted on 09/06/2009 7:30:16 PM PDT by org.whodat (Vote: Chuck De Vore in 2012.)
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To: org.whodat
soon we will all have government jobs, the paid informant kind.

Which you'll happily be one of, no doubt.

6 posted on 09/06/2009 7:31:29 PM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Lurker
Government is the only growth industry in America. We have more government than we will ever need. Be happy!

"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus

7 posted on 09/06/2009 7:32:42 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Lurker

Every time I put cracker head in the search block you turn up. But then it happens when I look for BS as well.


8 posted on 09/06/2009 7:39:52 PM PDT by org.whodat (Vote: Chuck De Vore in 2012.)
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To: Brilliant
So what is the federal gov't doing? I bet it is growing.

States can grow or shrink their governments all they want--the 10th amendment guarantees that...but the federal government is what needs to be limited.

9 posted on 09/06/2009 7:40:15 PM PDT by Recovering_Democrat
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To: Brilliant

No matter what the reason, this is great. About time these leeches found out what a real job was like.


10 posted on 09/06/2009 7:41:01 PM PDT by AUH2O Repub (Palin/Hunter 2012)
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To: Brilliant

If you want smaller government, become more self-sufficient and spend less.


11 posted on 09/06/2009 8:00:23 PM PDT by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote)
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To: org.whodat
Every time I put "boot licking Statist" in my search bar you show up.
12 posted on 09/06/2009 8:12:41 PM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Lurker
Haven't had an original thought in your entire life.
13 posted on 09/06/2009 8:13:25 PM PDT by org.whodat (Vote: Chuck De Vore in 2012.)
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To: Brilliant

Health care can’t defy gravity forever.


14 posted on 09/06/2009 8:23:41 PM PDT by rbg81 (DRAIN THE SWAMP!!)
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To: Brilliant

Wait till the states and locals try to raise the property taxes. Tea bags will fly!


15 posted on 09/06/2009 8:47:59 PM PDT by Don Corleone ("Oil the gun..eat the cannolis. Take it to the Mattress.")
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To: Don Corleone

Or the sales tax? How about 8.25% in the Great State of Mecklenburg, North Carolina? (We’re trying to make the NYC transplants feel at home.)


16 posted on 09/06/2009 8:59:35 PM PDT by DeFault User
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To: Brilliant
But..but...Slow Joe says the economy is doing fine now, thanks to the PorkStimulus Bill.
The Obama's are vacationing again, Kennedy's are yachting again, WeHo is partying again.
See? Everything's back to normal.
17 posted on 09/06/2009 9:17:45 PM PDT by Nevermore (...just a typical cracker, clinging to my Constitutional rights...)
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To: Brilliant

The story mentions that a family of a laid off police officer did not sign his boys up for baseball in order to save money.

If you come across a kid not playing ball on your kids’ team, or know of someone on the financial ropes with children who play sports and can not afford to enroll them, spring for the season’s fee for the kids and if you are taking your kid to the game offer or arrange rides to save the out of work family gas money.

When I coached young kids, I used to tell them the team had a small fund for kids who wanted to play but could not afford the fees for the season. As the coach, I took them with me to the games.


18 posted on 09/06/2009 10:11:37 PM PDT by SaraJohnson
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To: Drango

So is SC.


19 posted on 09/07/2009 5:16:27 AM PDT by wally_bert (It's sheer elegance in its simplicity! - The Middleman)
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To: Brilliant

It’s about time. Local government has been a bloated gravy train for way too long. Now we need cuts in another out of control boondoggle — public school staffing.


20 posted on 09/07/2009 5:21:48 AM PDT by AdaGray (uw)
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