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

-
Reports & ToolkitsAfter 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 entirely driven by eduLocal Governments Continue to Lose Non-Education Related Jobs, Despite Continued Recovery of Other Major Sectors
-
Document
Local Governments Continue to Lose Non-Education Related Jobs, Despite Continued Recovery of Other Major Sectors
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 entirely driven by education jobs in the local government sector. With schools beginning to reopen, local governments added 70,300 jobs in education.
Key Takeaways - Local governments have lost 1.2 million jobs in total since March 2020.
- For the third consecutive month, local governments lost non-education jobs, which included a loss of 344,100 jobs in April, 179,600 in May and 13,800 in June, bringing the total over 537,000 jobs lost since March.
- Other major jobs sectors continued the slow recovery process and added jobs, but the unemployment rate remains at 11.1 percent with a net loss of nearly 15 million jobs since February.
- The recovery process has been uneven across the nation: although temporary layoffs decreased, many of these temporary layoffs turned permanent in June, as demonstrated by the dramatic rise in permanent job losses, from 588,000 to 2.9 million in June alone.
- Less than 5 percent of counties were eligible to receive direct payments from the Coronavirus Relief Fund (CRF) or assistance from Municipal Liquidity Facility (MLF) to assist with fiscal impacts of COVID-19.
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. Non-education jobs in local government include healthcare practitioners, social workers, law enforcement officers, court clerks, sanitation workers, librarians, transit employees, utility workers, maintenance crews and construction workers, which collectively provide essential services and resources to communities.
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
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
Local Government Employment, 2020, Indexed (Jan. 2020 = 100)
Source: NACo Analysis of U.S. Bureau of Labor Statistics Jobs Report Published 07/02/2020
Meanwhile, other major jobs sectors continued the recovery process: 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.
The recovery process has been uneven across the nation. Although temporary layoffs decreased for the second consecutive month (by 4.8 million in June), permanent job losses continued to rise, even more substantially than in previous months, increasing from 588,000 to 2.9 million in June, and thus demonstrating that even as jobs are added back to the economy, many workers are finding themselves in a worse situation.
The unemployment rate declined for all major worker groups in June but remained uneven between them.
- White workers had the lowest unemployment rate (10.1 percent), followed by Asian workers (13.8 percent).
- Hispanic workers saw the largest decrease in the unemployment rate (3.1 percentage points), causing the unemployment rate for Hispanic workers (14.5 percent) to drop below that of Black or African American workers (15.4 percent).
UNEMPLOYMENT RATE FURTHER DECREASES AS SLOW, UNEVEN RECOVERY CONTINUES
U.S. Unemployment Rate, 2004-2020
Source: NACo Analysis of U.S. Bureau of Labor Statistics Jobs Report Published 07/02/2020
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).
This analysis was conducted by the National Association of Counties (NACo) on data provided by the Bureau of Labor Statistics’ (BLS) “Employment Situation – June 2020,” released July 2, 2020. If you have any questions or would like more information, please contact Research@NACo.org.
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 Ju2020-07-02Reports & Toolkits2022-08-31
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 entirely driven by education jobs in the local government sector. With schools beginning to reopen, local governments added 70,300 jobs in education.
|
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. Non-education jobs in local government include healthcare practitioners, social workers, law enforcement officers, court clerks, sanitation workers, librarians, transit employees, utility workers, maintenance crews and construction workers, which collectively provide essential services and resources to communities.
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
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
Local Government Employment, 2020, Indexed (Jan. 2020 = 100)
Source: NACo Analysis of U.S. Bureau of Labor Statistics Jobs Report Published 07/02/2020
Meanwhile, other major jobs sectors continued the recovery process: 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.
The recovery process has been uneven across the nation. Although temporary layoffs decreased for the second consecutive month (by 4.8 million in June), permanent job losses continued to rise, even more substantially than in previous months, increasing from 588,000 to 2.9 million in June, and thus demonstrating that even as jobs are added back to the economy, many workers are finding themselves in a worse situation.
The unemployment rate declined for all major worker groups in June but remained uneven between them.
- White workers had the lowest unemployment rate (10.1 percent), followed by Asian workers (13.8 percent).
- Hispanic workers saw the largest decrease in the unemployment rate (3.1 percentage points), causing the unemployment rate for Hispanic workers (14.5 percent) to drop below that of Black or African American workers (15.4 percent).
UNEMPLOYMENT RATE FURTHER DECREASES AS SLOW, UNEVEN RECOVERY CONTINUES
U.S. Unemployment Rate, 2004-2020
Source: NACo Analysis of U.S. Bureau of Labor Statistics Jobs Report Published 07/02/2020
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).
This analysis was conducted by the National Association of Counties (NACo) on data provided by the Bureau of Labor Statistics’ (BLS) “Employment Situation – June 2020,” released July 2, 2020. If you have any questions or would like more information, please contact Research@NACo.org.

About Teryn Zmuda (Full Bio)
Chief Research Officer & Chief Economist
Teryn Zmuda is the chief research officer and chief economist at the National Association of Counties (NACo), overseeing the Programs and Practices Division and the Research and Data Analytics Division.More from Teryn Zmuda
-
Blog
The State of the Nation's Workforce: January County Explorer Update
County governments employ more than 3.6 million public servants.1 As one of the largest collective employers in the country, county leaders understand the importance of a thriving labor market. -
Policy Brief
Support Local Development and Infrastructure Projects: The Community Development Block Grant (CDBG) Program
Urge your members of Congress to fund the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program at no less than $4.2 billion in FY 2024. CDBG, funded through the Transportation, Housing and Urban Development (T-HUD) appropriations bill, has been drastically reduced since FY 2010, having been cut by over half a billion dollars. -
Policy Brief
U.S. Economic Development Administration (EDA): Support Essential Seed Capital/Gap Financing for Local Job Creation
Urge your members of Congress to support at least $1.6 billion in funding for the U.S. Department of Commerce’s Economic Development Administration (EDA) as Congress begins considering funding for FY 2024. EDA funding is important to counties because it helps local communities achieve long-term economic growth based on local and regional priorities. -
Policy Brief
Restore Funding for HUD's Home Investment Partnerships (HOME) Program
Urge your Members of Congress to restore funding for the U.S. Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships (HOME) program to at least $2.1 billion as Congress begins to consider funding for FY 2024. The HOME program, funded through the Transportation, Housing and Urban Development (T-HUD) appropriations bill, was cut by 50 percent between FY 2010 and FY 2016. Although the HOME program has received annual increases or level funding since 2016, funding levels remain short of the $1.8 billion FY 2010 level. -
Press Release
Longtime Insurance Executive Joins NACo’s Public Promise Insurance Agency
NACo today announced that veteran insurance executive Tim Brown will join NACo as managing director of the newly created Public Promise Insurance Agency -
Policy Brief
Support Workforce and Local Business Development: the Workforce Innovation and Opportunity Act (WIOA)
Urge your members of Congress to support at least level or increased funding for Title I programs under the U.S. Department of labor (DOL) Workforce Innovation and Opportunity Act (WIOA) as Congress begins to consider funding for FY 2023. Funded through the Labor, Health and Human Services (Labor-HHS) appropriations bill, WIOA programs provide essential financial and other resources to support a demand-driven workforce development system.
-
Reports & Toolkits
State and Local Fiscal Recovery Fund Resource Hub
Explore NACo's resource hub for the ARPA State and Local Fiscal Recovery Fund.Reports & Toolkitsdocument010512:15 pmReports & Toolkits<table border="1" cellpadding="1" cellspacing="1" style="width:100%" summary="call-out transparent">
<tbody>
<tr>
<td> -
Basic page
Economic Mobility Leadership Network
The Economic Mobility Leadership Network (EMLN) is a NACo cohort of county leaders that facilitates and incubates county-specific discussion and problem-solving on issues of economic mobility and helps county leaders identify and assess their current barriers to mobility and share scalable and transferable programs across the country.pagepagepage<p>Economic mobility refers to changes in an individual’s economic status over a lifetime and across generations—usually measured in income.
-
Basic page
NACo High Performance Leadership Academy
The NACo High Performance Leadership Academy is an online 12-week program that will empower frontline county government professionals with the most fundamental leadership skills to deliver results for counties and communities.pagepagepage<table border="1" cellpadding="1" cellspacing="1" style="width:100%" summary="medium-call-out transparent">
<tbody>
<tr>
<td> -
Basic page
cashvest
cashvest® by three+one is a cash management platform that provides new and unparalleled level of liquidity analysis and data services for local, county, school district and college governing bodiespagepagepage<table border="1" cellpadding="1" cellspacing="1" style="width:100%" summary="call-out">
<tbody>
<tr> -
Basic page
Community, Economic & Workforce Development Steering Committee
Responsible for all matters pertaining to housing, community and economic development, public works, and workforce development including the creation of affordable housing and housing options for different populations, residential, commercial, and industrial development, and building and housing codes. Policy Platform & Resolutions 2022-2023 2022 NACo Legislative Prioritiespagepagepage<p>Responsible for all matters pertaining to housing, community and economic development, public works, and workforce development including the creation of affordable housing and housing options for different populations, residential,
Contact
-
Chief Research Officer & Chief Economist(202) 661-8821
-
Associate Director, Research(202) 942-4247
Related News
Related Resources
-
Policy BriefRestore Funding for HUD's Home Investment Partnerships (HOME) ProgramFeb. 1, 2023
-
Policy BriefU.S. Economic Development Administration (EDA): Support Essential Seed Capital/Gap Financing for Local Job CreationFeb. 1, 2023
-
Policy BriefSupport Local Development and Infrastructure Projects: The Community Development Block Grant (CDBG) ProgramFeb. 1, 2023
Upcoming Events
-
8Feb2023Webinar
Local Strategies for Reaching Families and Young Children Experiencing Homelessness
Feb. 8, 2023 , 2:00 pm – 3:00 pm -
11Feb2023
-
22Feb2023Webinar
Executive Perspectives on Preparing for an ERP Replacement Project
Feb. 22, 2023 , 3:00 pm – 4:00 pm
More From
-
Legislative Analysis for Counties: The Consolidated Appropriations Act of 2023
This analysis includes funding highlights for key programs impacting counties.
Learn More