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State And Local Gov’ts Face Record Layoffs

From CNN’s sobbing Money.Com:

Recovery at Risk – State, local layoffs to hit record levels

By Tami Luhby, June 6, 2011

NEW YORK (CNNMoney) — 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.

Because the flow of Obama’s stimulus money is now stopping on June 30th. The rest of that money will go more directly to the Obama re-election campaign.

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."

And never mind that probably the bulk of these jobs are teachers and school administrators, who are "laid off" until next September. (Sometimes so that they can collect unemployment benefits from the state while they are on vacation.)

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.

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.

So states are planning to slash funds for education, social services and local governments, as well as downsize their payrolls even more, in the coming fiscal year

Which is why we are now going to be treated to a plethora of sob stories about how the public sector is suffering, and how we need a new stimulus. We can’t cut education!

Caught in a fiscal bind, local governments will have to reduce personnel expenses since it is the costliest part of their budgets and they’ve already slashed their programs and services

You mean up to now they have cut services but have not cut any personnel? That is brilliant!

Teachers and school staff will bear the brunt of the layoffs this summer, as hundreds of thousands will likely be laid off around the nation. The national job numbers should reflect the hit in July and September…

Again, this happens every year. But it’s a great way to panic people into thinking we need yet another stimulus.

After all, those Democrat votes aren’t going to buy themselves.

This article was posted by Steve on Tuesday, June 7th, 2011. Comments are currently closed.

5 Responses to “State And Local Gov’ts Face Record Layoffs”

  1. Right of the People says:

    I know it’s a dream that will never come true but wouldn’t it be great if we could get a list of the actual “jobs” being cut?


    I believe you are 1000% correct that most of these will be summer layoffs for the teachers and in late August, early September there will be a miraculous surge of hiring and we will have “created” 100,000 new jobs that Barry the Bungler can crow about.

  2. Liberals Demise says:

    They could always get a job working for Obama Care. Two millions jobs are suppose to come with it.
    “Working for Obama Care when Obama Care don’t work”, you say?
    Hows about a “Shovel Ready Job”? Naw…..that didn’t work either.
    I hear there are openings to be a White House Economist but from the way things look, it’s not steady work.
    What about flipping hamburgers for MacDonalds? It’s only part time but you get a free ride away from mandate
    Obama Care if only for a year.
    Lets’ be like our gutless leader and play the blame game.
    Japan, BUSH, Global Warming, BUSH, China, BUSH, bedwetting, BUSH, Rightwing Media, BUSH, War on Terror, BUSH!!
    It is 12:00pm now…….I need a drink!

    • Rusty Shackleford says:

      Anthony Weiner didn’t seem to have any problem with bush. Or, did he?

      (rubbing chin)

      Well, I guess when it comes down to it, Wiener will blame bush for his problems too.

  3. Mae says:

    Pare ’em down to essential state entities/services, which are…… OK, fire departments, police departments, local jailers, teachers who produce students who can read, write and do arithmetic…. Think, now…. Those involved in checking restaurants re e coli, goims, bacteria, cleanliness…. Maybe building inspectors…. Hall of records clerks so we all have our birth certificates recorded correctly, especially in our islands…. Xerox repairmen…. Come on, now…think….

  4. Rusty Shackleford says:

    “Poor and minorities hardest hit” in 3….2…..1

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