Washington An injection of $26 billion in federal aid won’t be enough to save the jobs of more than a half million people who work for state and local governments or for companies that do business with them.
Economists say state and local budget gaps are so vast that up to 30,000 public jobs will be cut each month at least through year’s end. And private companies that contract with states and localities are likely to cut even more deeply.
All told, 600,000 to 700,000 jobs will likely vanish over the next 12 months at states, localities, private contractors and other businesses that depend on government business, according to the Center on Budget and Policy Priorities, a Washington think tank.
The July unemployment report, released Friday, showed state and local governments cut 48,000 jobs last month — the most in a year.