May 2010, Volume 28, Issue 9

Largely because of fiscal assistance provided by the federal government, job losses in state government have been much lower than those in the private sector. As that federal aid comes to an end, the prospect for public sector job losses increases dramatically, unless a) federal aid is extended or b) there is a sudden and swift improvement in state tax collections. At the same time, a recent study questions whether state and local government employees have it so much better than their private sector counterparts.