State and local governments across the United States are still facing challenges in restoring employment levels to pre-pandemic numbers.
A report from Census.gov shows while private industry jobs have not only recovered but surpassed 2019 levels, government sectors remain below their earlier benchmarks as of the late 2023.
Employment Trends: State and Local vs. Private Industry
The economic fallout from the COVID-19 pandemic significantly affected employment in state and local governments.
Between March 2019 and March 2023, these governments saw a loss of 101,000 jobs, a 0.5% decline, according to US Census Bureau data.
Private Sector Recovery
- Private industry employment rebounded by March 2022, surpassing 2019 levels with 129.3 million jobs.
- This marked a 1.2% increase (1.6 million jobs) from pre-pandemic figures.
Public Sector Struggles
- By March 2023, state and local governments had not yet recovered their pre-pandemic workforce levels, despite some growth since the downturn.
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Sectors Hit Hardest by the Pandemic
Government services experienced widespread job losses during the pandemic, with education sectors bearing the brunt of the decline.
Key Losses (2020–2021)
- Elementary and Secondary Education: Lost 447,000 jobs (5.7%), accounting for nearly half of all government job cuts.
- Higher Education: Shed 282,000 positions (8.5%).
- Parks and Recreation: Declined by 59,000 jobs (13.9%).
Overall Decline
- Government employment dropped 4.8%, a total loss of 948,000 jobs from 2020 to 2021.
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Recovery in Public Sector Jobs
Despite ongoing challenges, state and local government employment has seen gradual recovery. Between 2021 and 2023, employment in these sectors increased by 4.1%, adding nearly 772,000 jobs.
However, they remain short by approximately 176,000 positions compared to pre-pandemic numbers.
Areas of Growth
- Elementary and Secondary Education: Added 452,000 jobs (6.1%), surpassing 2020 levels by about 6,000 positions.
- Higher Education: Increased employment by 147,000 jobs (4.8%).
- Parks and Recreation: Grew by 17%, adding 62,000 jobs.
Despite these gains, many areas have not fully recovered to their March 2019 levels.
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Expert comment
WhatJobs CEO Alex Paterson:
“The pandemic fundamentally reshaped the workforce landscape, and state and local governments are still feeling the ripple effects.
“While private sector jobs have largely rebounded, public sector roles face unique challenges, from budget constraints to changing employee expectations.
“At WhatJobs, we’re seeing a growing demand for innovative recruitment strategies in these sectors to attract and retain the talent they urgently need.”
The Road Ahead for State and Local Governments
State and local governments face persistent challenges in fully recovering their workforce. As the private sector continues to thrive, the gap highlights issues in funding, workforce retention, and evolving demands for public services.
Future recovery efforts may require innovative policies to attract talent, particularly in education and recreational services, while addressing systemic constraints exacerbated by the pandemic.
