State and Local Governments May Shed Up To 450,000 Jobs in FY 2012
According to a new report out by UBS Investment Research, as many as 450,000 state and local government employees could be laid off in the upcoming fiscal year. This is a significant increase compared to last fiscal year’s layoffs, which totaled about 300,000 positions.
The report goes on to say that the increase is largely due to the ending of ARRA funds, including enhanced Medicaid matching rates and the education jobs fund. Maury Harris, a UBS economist, told Reuters that state and local governments are facing a $155 billion deficit for fiscal year 2012, compared to around $108 billion last year.