TLP: What Do You Punch When You Can't Punch The Clock?
Cash-strapped governments already have cut services and imposed new or higher taxes and fees to try to close budget gaps. Now, the cost-cutting target is the payroll and the job security many public employees have gotten accustomed to is at risk, or worse.
AP via The Huffington Post:
Those government layoffs make it harder to reduce the national unemployment rate, now 9.5 percent. The rate did fall slightly in June because more than a half-million out-of-work Americans gave up their job searches. Once people stop seeking work, they're no longer counted as unemployed.We've already seen what government work can do to jobs numbers. This won't help that charade any.
The economy is already under pressure from weak consumer spending, sinking stock prices, a European debt crisis and a teetering real estate market.
"It's certainly a drag on economic growth in our outlook," Mark Vitner, an economist at Wells Fargo, said of the loss of public-sector jobs.