Public Sector Job Losses Affect Unemployment Rate

As reported by the Washington Post, public sector job losses have affected the country’s unemployment rate.  The unemployment rate, which is currently at 9 percent, would have dropped to 8.7 percent, had state and local governments not continued to cut jobs.

Amid lower tax revenue due to the recession, state and local governments have cut 455,000 jobs since the beginning of 2010, almost half of them in education.

Overall, the proportion of government jobs fell to 16.7 percent in October, its lowest level in three years.

The cuts are a victory for those who argue for a leaner public sector, but they have also weighed down the overall job market.

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