Public sector continued to shed jobs in June
The private sector continued to show solid job gains in June, while the public sector kept shedding workers.
The overall public sector lost 7,000 jobs last month, continuing a years-long decline, according to the Labor Department. In comparison, U.S. employers overall added 195,000 new jobs last month. The unemployment rate held steady at 7.6%.
Much of those cuts can be attributed to sequestration, or the $85 billion in across-the-board cuts that the government must implement by the end of its fiscal year in September. But fortunately, economists’ more dire predictions about the effects of budget cuts have not come to pass.
The government has been cutting a large number of jobs since 2009, during the last months of the Great Recession.
In the last year, the private sector has gained jobs at a 2% rate. But government employment has fallen by 0.2%. That means, over the last 12 months, the private sector added more than 190,000 jobs per month while the government shed 3,000 jobs a month.
Follow Shan Li on Twitter @ShanLi
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