States that cut their public-sector workforce had deeper job losses overall and in the private sector: Change in state and local government, total nonfarm, and private employment, July 2008–July 2013

Preserved S&L public sector Cut S&L public sector
Average change in S&L jobs (average of individual states) 3.3% -4.1%
Average change total nonfarm employment 0.6% -1.7%
Average change private sector 0.1% -1.3%

Notes: Excludes values for North Dakota, where the oil and gas boom caused abnormally large job growth. North Dakota grew its state and local public sector workforce during this period. Including it raises the average change in total nonfarm for states that preserved their state and local public sector to 1.7% and the average change in private employment to 1.5%.

Source: Economic Policy Institute analysis of Local Area Unemployment Statistics (LAUS) form the Bureau of Labor Statistics.

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