Government employment has not recovered from pandemic – Fed

Low wages could be responsible from 450,000 missing state and local government workers in US


“Anaemic wage growth” and early retirements have kept state and local government payrolls in the US below their pre-pandemic trend.

Research from the Federal Reserve Board finds despite “strong budget positions and the waning of social distancing, the level of [state and local] payrolls has not returned to its pre-pandemic peak let alone its pre-Covid trend”.

Researchers estimate 90% of the shortfall in state and local government payrolls can be attributed to excess retirements and low wage

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