Job Losses Are Shifting to States, Cities After Business Rebound
- States, cities will likely keep cutting jobs on budget squeeze
- ‘Next big economic shock’ looms absent a boost in federal aid
In Plymouth, Massachusetts, 2020 was supposed to be a big year. A summer-long series of events had been planned to mark the 400th anniversary of its settlement by English Puritans. The Mayflower II, a replica of the legendary ship that carried them to America, was ready for a relaunch after an extensive facelift.
That’s all off, thanks to Covid-19. Instead of splashing out on celebrations, the town of about 60,000 –- like communities of all sizes across the country -- is getting ready for some painful budget austerity instead.
As the U.S. tries to lift its economy out of the worst slump in modern history, a looming round of spending and job cuts at state and local governments threatens to drag it back in. That happened after the last recession, too. Now the numbers look even worse.