Statement from the Volcker Alliance on December Jobs Report
State, Local Jobs Steady Amid University Worker Strike, Recession Fears
New York, NY – The US Bureau of Labor Statistics (BLS) reported today that total nonfarm payroll employment rose by 223,000 in December as the unemployment rate fell slightly, to 3.5 percent. Government employment was little changed overall, although the BLS noted that state government education jobs dropped by 24,000 in the month, reflecting a strike by thousands of University of California teaching assistants, researchers, tutors and graduate student instructors. The walkout, which began in November, was settled December 23.
“Fears of another recession in 2023 may continue to limit further growth of government employment,” said William Glasgall, Volcker Alliance senior director, public finance. “And as policy priorities continue to shift away from pandemic response, any gains in state and local hiring will likely be focused on areas other than public health in 2023.”
State and local hiring trends may also hinge on the recovery of major cities from pandemic-related job losses and the impact on urban economies and tax revenues of private sector employees working from home. The Volcker Alliance’s monthly Special Briefing webinar on January 19 will address these issues as we focus on the future of the nation’s downtowns. The webcast is produced in partnership with the University of Pennsylvania Institute for Urban Research and is also available as a podcast on Apple Podcasts, Google Podcasts, Spotify, and other platforms.
The Volcker Alliance is continuing to provide research into the long-term impacts of national economic trends on state and local finances, along with its longstanding work empowering and inspiring the next generation of public servants to fill these jobs.
The Volcker Alliance is continuing to provide research into the long-term impacts of national economic trends on state and local finances, along with its longstanding work empowering and inspiring the next generation of public servants to fill these jobs.
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