Hiring leaps in public sector

USA Today reports:

Federal, state and local governments are hiring new workers at the fastest pace in six years, helping offset job losses in the private sector.

Governments added 76,800 jobs in the first three months of 2008, the Bureau of Labor Statistics reports.

That's the biggest jump in first-quarter hiring since a boom in 2002 that followed the 9/11 terrorist attacks. By contrast, private companies collectively shed 286,000 workers in the first three months of 2008. That job loss has led many economists to declare the country is in a recession.

Job numbers for April, out Friday, will show if the trend is continuing. Some economists say a government hiring binge could soften a recession in the short term.

"Government jobs are an important cushion for the economy when the private sector falters," says North Carolina State University economist Michael Walden.

But the job expansion could later cause financial problems for governments that are spending too much.

"More hiring has nothing to do with good government or economic policy," says economist Kenneth Brown, research director at the Rio Grande Foundation in Albuquerque. "It has everything to do with government being slow to react to economic change."

Government hiring began to boom last year around July 1, when most state and local governments started new fiscal years. Those budgets were based on forecasts established in a strong economy. In each quarter since, the total government workforce has been the most in at least six years.

State and local governments have run deficits for the last nine months, the Commerce Department reports. Tax collections went flat in the middle of 2007, but spending has continued to rise.

The USA has nearly 88,000 units of government, mostly local, that employ 22 million. Hiring has been strong at every level, from new CIA spies to preschool teachers. Some of what's happening:

•The federal government increased its workforce by 13,800 in the first three months of 2008. Local governments added 47,000 and states 16,000.

•The Rochester, N.Y., school system added 289 teachers while the school population shrank by 1,300 students. It's part of a state-funded effort to reduce class size. New York City is adding 1,300 teachers. Florida and Texas are also hiring to reduce class size.

•The Texas city of Weatherford (pop. 25,000) added an assistant city manager, nine firefighters, three police officers and extra crews for roads and parks. "We have serious infrastructure issues that we need to get a handle on," City Manager Jennifer Fadden says.

Some states may cut hiring to save money. Governors have announced hiring freezes in California, Delaware, Louisiana, Massachusetts, New Hampshire, New Jersey and New York, but the actions seldom trim total employment. Louisiana has hired 4,100 workers, mostly replacements, since a freeze began in January.