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Employment

The U.S. Bureau of Labor Statistics reported that aggregate state and local government employment declined by an estimated 16,000 jobs from July to August 2026. Over the last 12 months state governments have lost an estimated 13,000 jobs and local governments have lost an estimated 14,000 jobs. The aggregate level of state and local employment exceeds its previous February 2020 peak by 645,000 jobs.

The BLS identifies approximately 20.6 million employees of state and local government as of September 2026. Local governments, which include most school districts, account for nearly three-quarters of total state and local employment, with state governments accounting for around one-quarter of the total. Overall, state and local employment accounts for approximately 13 percent of the nation's workforce.

The private sector added 46,000 jobs in September 2026.

The charts below present the relative changes in state and local government and private sector employment since 2007.

Monthly changes in state and local government
and private sector employment, 2007-2026

Monthly changes in state and local government employment, 2007-2026

Compiled by NASRA based on data provided by the U.S. Bureau of Labor Statistics. Data is sourced from the BLS Current Employment Statistics program, which is a monthly survey of households, businesses, and governments measuring employment, hours, and earnings estimates. The CES survey reference period is the pay period that includes the 12th day of the month. Data are published on a preliminary basis and revised twice before being finalized. 

See more: https://www.bls.gov/ces/


Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.

What’s New at NASRA: Employee Contributions to Public Pension Plans

Employee contributions remain a central part of public pension financing, and the way those contributions are structured is subject to change depending each states' governance rules. . NASRA’s 2026 updated brief finds median employee contribution rates of 6.2 percent of pay for employees who participate in Social Security and 9.0 percent for those who do not. For employees who do not participate in Social Security, the public pension often plays a broader role in retirement security, effectively providing two of the traditional three legs of the retirement stool rather than one.

Since 2009, 41 states  increased employee contributions in at least one plan, while some states recently reduced rates for selected employees. Variable contributions are also becoming more common, with 26 plans in 17 states adjusting employee rates based on funding, plan costs, or other factors. The brief provides current trends and a state-by-state look at employee contribution requirements across public retirement systems.