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June Jobs Report: This Silver Lining Has a Cloud 

http://www.aflcio.org/Blog/Economy/June-Jobs-Report-This-Silver-Lining-Has-a-Cloud 

Every indication is that the Bureau of Labor Statistics report for the June labor market will show large gains in the private sector. We have already surpassed the previous highs of non-farm employment and private-sector employment set in 2008. But this silver lining has a cloud. We remain lagging in public-sector employment. Most importantly, local education employment is still below its June 2009 level. Though it fluctuates slightly month to month, it remains near where it was in 2012, about 320,000 below its peak. While other local government jobs appear to have recovered, local public education has not. State government employment also remains lower than its January 2009 high, languishing about 140,000 below its peak.

This is the first post-World War II expansion in which public-sector employment has not recovered quickly. And it is the first expansion in which the public sector has been such a drag on the growth of gross domestic product (the measure of all goods and services produced in the United States). This drop in public-sector spending and public-sector employment gives the appearance of the often-discussed "structural change" in the labor market. Typically, structural change describes a shift away from jobs requiring fewer skills and less education toward high-skill occupations requiring higher levels of education, resulting in workers being displaced and unemployed with too few skills for the new economy. But this is a structural change in reverse because public-sector services tend to require a higher skill set and employ workers with higher levels of education than the types of services that have been growing during this recovery, such as retail, business services, accommodations and food services...