The effects of firing 600,000 public sector workers is definitely taking it's toll. This month, public sector job losses completely wiped out private sector job gains.
From US News and World Report
The latest national employment report shows that, while service-industry job creation remains positive, goods-producing industries continue to struggle. However, one particular sector has reliably shed significant numbers of workers every month this year. It's not construction, and it's not manufacturing; rather, government jobs are being shed by the tens of thousands almost every month, hindering an already weak recovery.
Since the end of the recession, government employment--including federal, state, and local jobs--has fallen by roughly 600,000.
Those job losses are taking their toll on the national economic scene, and are in their own way creating more job losses in the private sector. "If we're losing [20,000 to 25,000] in the public sector, that's income and spending that doesn't occur. It's more like [35,000 to 40,000] jobs as a result of that," says Joel Naroff, president of Naroff Economic Advisors, an economic consulting firm based in Holland, Pennsylvania. "So one job isn't just one job; it's more than one job. And so the private sector gets affected,"
, Americans can expect more of the same—more public-sector job cuts, which will continue to drag the economy down. "The federal government's not going to be hiring, and state and local governments are going to be laying off. So you have a situation where you're likely to see this at least for the next six to nine months," he says. Whether the public sector will finally pull job creation into negative territory remains to be seen.