Government Job Losses Hurting Economy?

State and local governments are shedding jobs which slows the economic recovery efforts nationwide.  The Associated Press  reports that states cut 49,000 jobs over the past year and localities 210,000, according to an analysis of Labor Department statistics. There are 30,000 fewer federal workers now than a year ago — including 5,300 Postal Service jobs canceled last month.

Of course this helps the drain on government budgets, but the unemployed do not generally participate in the economy, which slows retail sales, etc.  Ultimately economists say that the economy will recover, but when?

Rob Shapiro, a former undersecretary of commerce in the Clinton administration and now chairman of Sonecon, an economic consulting firm, tells AP that: Cuts in spending and regulation don’t encourage private job creation by making government more business friendly, as conservatives politicians contend, Shapiro said. They just mean more lost jobs upfront because government spending cuts almost always breed more layoffs.

About Todd Couvillon

Senior Paralegal and Office Manager at Purple Law Firm. Experienced in the legal field since 2003. Todd Couvillon also serves as Webmaster for all firm sites for 10 years. Previously, Todd Couvillon was an insurance agent and Insurance Agency Manager in Bowling Green, KY.