States, Local Governments To Add 220,000 Jobs By End Of This Year, Report Says

States to add employees for first time in five years.

Whether the U.S. is in the midst of an economic and jobs creation comeback may be debatable.

But when it comes to public employees working for the 50 state governments themselves, the economy certainly is brightening, and if you're looking for a new job, you may want to consider government work. At least according to a new report from Bloomberg.

Over the past five years, state and local governments reduced their workforces by a combined total of roughly half a million. But in 2013, state and municipal agencies are poised to add employees, according to projections by Moody's Analytics, the credit ratings agency. In speaking to Bloomberg, Mark Zandi, the chief economist at Moody's, said that he expects state governments to add a total of 220,000 new employees by the end of the 2013 calendar year.

More: 7 States With The Most Jobs

Other economists are welcoming the report as a turning point.

"The bloodletting on the state- and local-government level has finally passed through," said Jim Diffley, chief U.S. regional economist for IHS Global Insight, the international economics consultancy. "They're no longer subtracting from growth."

Indeed, for some states, there is recovery. Texas, fueled by an oil and gas boom, is projected to have a surplus on par with the $8 billion record set in 2007, before the financial crisis hit, according to Bloomberg.

A Striking Turnaround

Only a few years ago, the situation appeared dire for state coffers. In a survey of recession-stricken America during the summer of 2010, Time magazine completed an analysis of local governments as a cover story, "The Broken States of America."

Nearly two-thirds of all states had been forced to order across-the-board budget cuts. There was so little money left toward paying public employees their salaries that 22 states instituted unpaid furloughs for their workers.

Even the most essential state workers, like teachers, firefighters and police, were at risk of being let go. Their employment status became so dire that President Barack Obama requested $50 billion in emergency aid from Congress in 2009 to avoid massive layoffs. The request came on top of that year's controversial stimulus package, the cost of which was pegged at $787 billion.

In a letter to congressional leaders regarding the emergency aid and stimulus package, Obama characterized the moves as enabling a new era after the worst financial crisis in 80 years.

"At this critical moment, we cannot afford to slide backwards just as our recovery is taking hold," Obama wrote back in 2010.

But despite Moody's optimism about public sector jobs, some states remain financially strapped.

According to a report from the Center on Budget and Policy Priorities, a nonprofit, left-of-center think tank based in Washington, D.C., most states are still struggling to fund themselves. A total of 31 states entered the fiscal year 2013, which began on July 1, 2012, facing a combined budget shortfall of $55 billion.

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Pension liabilities are destroying the states and they want to hire more people. 2.65 million Federal Employees means that we have over50,000 Federal Employees for every state of the Union. That does not count State Employees and we wonder why we are broke? Geez--who elects these people?

January 10 2013 at 10:40 AM Report abuse rate up rate down Reply

This is exactlly what we don't need. We must take back our country.

January 10 2013 at 9:32 AM Report abuse +2 rate up rate down Reply
rebecca jean

gee what a surprise

January 10 2013 at 6:14 AM Report abuse +1 rate up rate down Reply

what an embarassment! bigger goverment is not what we need. way to go, american voters!!

January 10 2013 at 4:28 AM Report abuse +4 rate up rate down Reply
Ed Invests

We obviously learn nothing and the idea of growing government is beyond my comprehension. We pay them too much, don't need more of them, actually need far fewer of them, pay for most of their health insurance, grant them better retirement than the vast majority of taxpayers, don't seem to know how to fire anyone, and have now accepted their right to strike if they don't like the benefits.

We as non government taxpayers need to make it known that budget cuts and hiring more workers is backwards. I know of no business of the size of goverenment at any level, that cannot reduce their workforce by 10 to 20 percent without a change in service.

Anyone, in any state, shouldt make this clear to local, county, state, and federal government that hiring is not an option, but that a reduction is the course to financial balance. Change the retirement system to social security. It makes no sense to me that taxpayer paid government workers get better retirement than the general population that pays them. It is the huge retirement fund that has most places in trouble.

A hiring freeze until they find a way to balance the budget without more taxes. There is only one answer to that. Let people go and don't hire more.

January 10 2013 at 3:33 AM Report abuse +4 rate up rate down Reply

Wondeful idea, the country is in deep do-do and more useless government "workers" is just what the chimp in the whitehouse is al;l about

January 09 2013 at 8:54 PM Report abuse +6 rate up rate down Reply

Exactly what OBama wants... people to be dependent on the government. When are you left wing people going to wake up and smell the roses... this is not good news at all. To those who have a brain and understand the consequences of this entire picture, this is another devastating blow to the America we know and love.

January 09 2013 at 7:00 PM Report abuse +8 rate up rate down Reply

Government jobs are a necessary drain on the GDP. They do NOT add to the economy. They produce no product and there are no investors for those jobs ... unless you consider the taxpayer as a hostage investor. Without companies that produce products and services that can be sold around the world as well as in your own country, there is no economy.

January 09 2013 at 6:53 PM Report abuse +6 rate up rate down Reply

thats great, and who is paying for these jobs. thats the obama way.

January 09 2013 at 5:43 PM Report abuse +9 rate up rate down Reply
1 reply to ohfatboy's comment

What part of state is hard for you to understand or are you stupid and think the federal goverment pays for the states employees?

January 09 2013 at 5:48 PM Report abuse -5 rate up rate down Reply
1 reply to mo524's comment

What part of whether it is federal or state, government workers are paid for with tax dollars and this country is broke!!!!!!!!!!!!!!!! Many states are broke!!!!!!!!!!!!!!!!!!!!!

January 09 2013 at 7:56 PM Report abuse +6 rate up rate down

The headline shown have read:

"States, Local Governments To Add 220,000 Jobs By End Of This Year.....If The Federal Government Provides The Money To Fund Them."

January 09 2013 at 1:42 PM Report abuse +9 rate up rate down Reply
1 reply to lesturgill's comment

Seriously you are so uneducated you believe the Federal government pays the wages of State and Local employees? Do some research before you post such asnine posts.

January 09 2013 at 4:08 PM Report abuse -5 rate up rate down Reply
2 replies to sksnyder25's comment

You are right! The state pays for the state government employees. But who pays the state? Oh yeah ... the taxpayer. And if private industry leaves the state because of over taxation and over regulation, who will the citizens of the state work for? Government employees ... no matter what level (Fed, State, Local, etc.) ... do not support the economy with their jobs. Products and services do. And you only get those with private companies investing in the state and local communities by hiring employees, paying wages, paying taxes, etc.

January 09 2013 at 6:58 PM Report abuse +5 rate up rate down

The Feds provide money to the local police, the state prison system and many other areas of the state but I won't go on, research it on your own before you call someone uneducated.

January 09 2013 at 9:04 PM Report abuse +2 rate up rate down

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