As politicians in Washington, D.C., debate how to shrink the size of government, their counterparts in statehouses have actually been doing it. Public-sector jobs now account for the smallest share of the nation's employment since the 2008 financial crisis, according to new data released yesterday. In October, the public sector cut 24,000 jobs while private industry continued adding jobs at a steady clip, the Labor Department said yesterday. The nation's unemployment rate fell slightly to 9 percent, but it would have been 8.7 percent had state and local governments not contracted the past two years.
Amid lower tax revenue due to the recession, state and local governments have cut 455,000 jobs since the beginning of 2010.
Overall, the proportion of government jobs fell to 16.7 percent in October, its lowest level in three years. The cuts are a victory for those who argue for a leaner public sector, but they have also weighed down the overall job market.
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