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How many more jobs would we have if the public sector hadn’t been shedding jobs for the last three years?

The most glaring weakness in the current recovery relative to previous ones is the unprecedented public-sector job loss seen over the last three years. The figure below shows that private sector job growth in the current recovery is close to that of the recovery following the early 1990s recession and is substantially stronger than the recovery following the early 2000s recession.

Yet, as the figure below shows, the public sector has seen massive job loss in the current recovery—largely due to budget cuts at the state and local level — which represents a serious drag that was not weighing on earlier recoveries.

How many more jobs would we have if the public sector hadn’t been shedding jobs for the last three years?  The simplest answer is that the public sector has shed 627,000 jobs since June 2009.  However, this raw job-loss figure understates the drag of public-sector employment relative to how the economy functions normally…

via Three years into recovery, just how much has state and local austerity hurt job growth? | Economic Policy Institute.


12 thoughts on “How many more jobs would we have if the public sector hadn’t been shedding jobs for the last three years?

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