Local Govts Continue to Lose Non-Education Jobs, Despite Continued Recovery of Other Major Sectors

Non-education local government jobs continued to decline for the third consecutive month, decreasing by 13,800 in June and bringing the total number of non-education jobs lost to local government over 537,000.

After a loss of 1.3 million local government jobs in April and May, the number of local government jobs remained largely unchanged in June, increasing only by a nominal amount of 0.4 percent (57,000 jobs) – according to the newly released June jobs report from the Bureau of Labor Statistics (BLS).

This nominal increase was driven entirely by education jobs in the local government sector. With schools beginning to reopen, local governments added 70,300 jobs in education.

According to the Maryland Department of Labor, local governments across the state lost more than 17,000 jobs between March and May (June’s numbers are due later this month).

Local Governments Continue to Lose Non-Education Jobs, Despite Recovery of Other Major Sectors

Change in the number of jobs by selected industries, April through June 2020

Screen Shot 2020-07-14 at 10.41.50 AM
Source: NACo Analysis of U.S. Bureau of Labor Statistics Jobs Report Published 07/02/2020

Non-Education Local Government Jobs Decrease for Third Consecutive Month, Education Jobs Rise Slightly

Screen Shot 2020-07-14 at 10.46.04 AM
Source: NACo Analysis of U.S. Bureau of Labor Statistics Jobs Report Published 07/02/2020

Meanwhile, other major jobs sectors continued to recover: 4.8 million jobs were added in June and the unemployment rate decreased by 2.2 percentage points to 11.1 percent.

  • Leisure and hospitality added 2.1 million jobs.
  • Retail trade added 740,000 jobs.
  • Education and health services added 568,000 jobs.
  • Manufacturing added 356,000 jobs.
  • Professional and business services added 306,000 jobs
  • Construction, transportation, and every other major sector also added jobs in June, with the exception of mining, which lost another 10,000 jobs.

According to the National Association of Counties (NACo):

Overall, the June jobs report from BLS discloses a national workforce in the beginning phases of a slow, uneven recovery process, and still far from pre-pandemic levels.

  • The increase of 4.8 million jobs in June leaves the U.S. economy with nearly 15 million jobs less than in February 2020.
  • And June’s unemployment rate of 11.1 percent remains 7.6 percentage points higher than February’s unemployment rate of 3.5 percent.

The landscape of the nation: The Bureau of Labor Statistics (BLS) collected its data for the June jobs report during the week beginning June 7. During that time, COVID-19 cases in the U.S. topped 2 million and the number of COVID-19 related deaths rose above 110,000. Over 2,900 counties had at least one COVID-19 case, and nearly 1,800 counties had at least one COVID-19 related death.

By this time, the U.S. Treasury had distributed aid to states and local governments from the Coronavirus Relief Fund (CRF), but less than 5 percent of all counties were eligible for a direct payment. The U.S. Small Business Administration (SBA) had also approved nearly 4.6 million loans through the Paycheck Protection Program (PPP), amounting to over $500 billion (but leaving $130 billion available).

Stay tuned to Conduit Street for more information.

Useful Links

Previous Conduit Street Coverage: Local Government Jobs Decline for Second Consecutive Month

U.S. Bureau of Labor Statistics: The Employment Situation — June 2020

Maryland Department of Labor: Current Employment Statistics (CES) – Workforce Information & Performance

Conduit Street Podcast: Unemployment, From Every Angle

Previous Conduit Street Coverage: Report: Absent Federal Aid to State and Local Govts, 5.3M More Jobs Will Be Lost By 2021

Previous Conduit Street Coverage: Fiscal Leaders: State Revenue Shortfall Could Hit $4 Billion by FY 2022