Where the Recession Continues: Local Government

While glimmers of a recovery can be seen in the eyes of private business, local governments continue to see red, shedding hundreds of thousands of jobs.

2 minute read

June 21, 2012, 1:00 PM PDT

By Andrew Gorden


Private firms have added hundreds of thousands of new jobs over the last two years, and even the federal government has grown somewhat since the recession. But as Shaila Dewan and Motoko Rich of The New York Times report, the last two years have seen government workforces especially hard hit. "Government payrolls grew in the early part of the recovery, largely because of federal stimulus measures. But since its postrecession peak in April 2009 (not counting temporary Census hiring), the public sector has shrunk by 706,000 jobs." Of those loses, over 400,000 were from local governments.

According to Dewan and Rich, "The losses appeared to be tapering off earlier this year, but have accelerated for the last three months, creating the single biggest drag on the recovery in many areas. "

"Although state tax revenues have started to recover and are estimated to exceed prerecession levels next year," governments have continued to see increases in the cost of the social services they provide, namely healthcare, pensions and education, and "more than a quarter of municipal governments are planning layoffs this year, according to a survey by the Center for State and Local Government Excellence."

"Even if the overall economy improves, local governments are likely to lag behind. Property tax receipts, which are projected to fall slightly in 2012, ‘will be weak through at least fiscal 2014,' wrote Daniel White, an economist at Moody's Analytics, in a report this month. ‘As a result, local government fiscal conditions will remain under pressure.'"

Tuesday, June 19, 2012 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight