Wednesday, July 14, 2010

here comes those state/local govt layoffs

More turmoil for the national and state/local macro-economies-- more of what we've already seen as the tip of a big iceberg. But this is not a big surprise; in fact, it's something I've been predicting for some time...

From Paul Davidson in USAToday (hat tip:

Here's another headwind for a sputtering job market: State and local governments plan many more layoffs to close wide budget gaps.

Up to 400,000 workers could lose jobs in the next year as states, counties and cities grapple with lower revenue and less federal funding, says Mark Zandi, chief economist for Moody's

Layoffs by state and local governments moderated in June, with 10,000 jobs trimmed. That was down from 85,000 job losses the first five months of the year and about 190,000 since June 2009.

But the pain is likely to worsen. States face a cumulative $140 billion budget gap in fiscal 2011, which began July 1 for most, says the Center on Budget and Policy Priorities....


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