Skip to content Skip to search

Republish This Story

* Please read before republishing *

We’re happy to make this story available to republish for free under an Attribution-NonCommercial-NoDerivatives Creative Commons license as long as you follow our republishing guidelines, which require that you credit The 19th and retain our pixel. See our full guidelines for more information.

To republish, simply copy the HTML at right, which includes our tracking pixel, all paragraph styles and hyperlinks, the author byline and credit to The 19th. Have questions? Please email [email protected].

— The Editors

Loading...

Modal Gallery

/
Donate to our newsroom

Menu

Topics

  • Abortion
  • Politics
  • Education
  • LGBTQ+
  • Caregiving
  • Environment & Climate
  • Business & Economy
View all topics

The 19th News(letter)

News that represents you, in your inbox every weekday.

You have been subscribed!

Please complete the following CAPTCHA to be confirmed. If you have any difficulty, contact [email protected] for help.

Submitting...

Uh-oh! Something went wrong. Please email [email protected] to subscribe.

This email address might not be capable of receiving emails (according to Bouncer). You should try again with a different email address. If you have any questions, contact us at [email protected].

  • Latest Stories
  • Our Mission
  • Our Team
  • Ways to Give
  • Search
  • Contact
Donate
Home

We’re an independent, nonprofit newsroom reporting on gender, politics and policy. Read our story.

Topics

  • Abortion
  • Politics
  • Education
  • LGBTQ+
  • Caregiving
  • Environment & Climate
  • Business & Economy
View all topics

The 19th News(letter)

News that represents you, in your inbox every weekday.

You have been subscribed!

Please complete the following CAPTCHA to be confirmed. If you have any difficulty, contact [email protected] for help.

Submitting...

Uh-oh! Something went wrong. Please email [email protected] to subscribe.

This email address might not be capable of receiving emails (according to Bouncer). You should try again with a different email address. If you have any questions, contact us at [email protected].

  • Latest Stories
  • Our Mission
  • Our Team
  • Ways to Give
  • Search
  • Contact

We’re an independent, nonprofit newsroom reporting on gender, politics and policy. Read our story.

The 19th News(letter)

News that represents you, in your inbox every weekday.

You have been subscribed!

Please complete the following CAPTCHA to be confirmed. If you have any difficulty, contact [email protected] for help.

Submitting...

Uh-oh! Something went wrong. Please email [email protected] to subscribe.

This email address might not be capable of receiving emails (according to Bouncer). You should try again with a different email address. If you have any questions, contact us at [email protected].

Become a member

The 19th thanks our sponsors. Become one.

Business & Economy

Public sector job loss is coming. Women will be hit hardest

Women have already lost more than 800,000 public sector jobs. That number could grow as state and local governments face budget shortfalls.

Lara Center, dressed in a red hoodie and holding a sign that says HONK in all caps above her head, protests in Denver to protect public schools from budget cuts.
Protestors in Colorado call on state lawmakers to protect public schools from budget cuts that would affect their jobs. (AP Photo/David Zalubowski)

Chabeli Carrazana

Economy and Child Care Reporter

Published

2020-09-02 06:00
6:00
September 2, 2020
am

Republish this story

Share

  • Bluesky
  • Facebook
  • Email

Republish this story

Women continue to weather the worst of this coronavirus-induced economic storm, but out in the horizon, another disturbance is forming. 

Public sector jobs are expected to take a greater hit as plummeting tax revenues across the country slash local and state government budgets, setting off layoffs and furloughs. When the job losses come, it’ll be women who will be most at risk. 

Nearly 60 percent of public sector employees are women, many of them women of color — the same demographic groups that already experienced the highest rates of unemployment when COVID-19 ripped through the job market. (Unemployment for Latinas peaked at 20.2 percent this year, and unemployment for Black women hit 16.5 percent). The one-two punch of the depletion of child care options and the closure of service sector businesses, jobs dominated by women, set off the nation’s first female recession. About 54 percent of all the jobs lost since the pandemic began were held by women. 

The 19th thanks our sponsors. Become one.

But with more cuts likely to come, now the question is: How bad could it get? 

“We are already seeing it,” said Heidi Shierholz, senior economist and director of policy at the Economic Policy Institute (EPI). “But it’s just gonna get way, way worse.”

Already, 1.4 million local and state government jobs were lost between February and June, almost two-thirds of them jobs that employed women. Furloughs have already started at universities and in city and county governments.  

But like in past recessions, the steepest cuts typically come later. With the Great Recession, job loss in the United States began in 2008 and cratered in 2010. But the losses for the public sector didn’t register until three years later. In 2013, public sector jobs hit their lowest point since 2001, when the Bureau of Labor Statistics started tracking the figures.

The delay is informed by the crumbling of the tax base and the impact that has on government budgets in the years after a recession first hits. In an August report, the National League of Cities estimated that cities would see a year-over-year decline of 11 percent in sales tax receipts in their fiscal year 2020 budgets. The hit to property taxes is starting to crop up, too, with growth from 2019 to 2020 expected to be at just 1.9 percent. Both are key funding sources for public sector jobs.

This year, the first coronavirus stimulus bill, the CARES Act, has kept some of the losses at bay, allocating $150 billion to state and local governments to cover mostly coronavirus-related costs. An additional $600 weekly unemployment insurance payment helped families keep up with their rents and mortgages. The Paycheck Protection Program loan kept some businesses open and workers on their payrolls, helping those businesses continue to pay taxes and allowing workers to continue buying goods and services. Eviction moratoriums kept folks from falling over a financial precipice, allowing them to continue making other payments and buying necessities. 

But the $600 weekly payments and the moratoriums have ended. EPI found that if the federal government doesn’t do anything to address budget shortfalls estimated to hit nearly $1 trillion by the end of 2021, some 5.3 million jobs — many of them public — could disappear. 

And it’ll hurt not just those workers, but people who rely on social services — like unemployment — emergency responders and sanitation workers. 

“We’re going to start seeing stuff in September. People are going to start getting evicted in September. People are going to start relying on services like homelessness services, things like that,” said economist Olugbenga Ajilore with the Center for American Progress, a left-leaning think tank. 

And because those services will be harder to receive due to there being fewer workers, “we’ll see this cascading effect,” Ajilore said. 

A missed stepping stone

For many workers in the public sector, these jobs are viewed as a pathway to the middle class. 

“The public service, that’s been an avenue for women, specifically women of color, to have good wages and good benefits and to provide essential services to the communities in which they live. They are in jeopardy right now,” said Lee Saunders, president of the American Federation of State, County and Municipal Employees union.

The uncertainty is worrying Josette Jaramillo, a lead case worker in the foster care unit in Pueblo County, Colorado. During the Great Recession, she was furloughed and lost her house and her car. She filed for bankruptcy in 2008. 

So far, layoffs haven’t started yet, she said, but administrative dollars have already been cut.

“If things dip a little lower and property taxes dip a little lower, I think that’s a real possibility for us,” Jaramillo said. 

Workers in her region are looking with concern at nearby Denver County, where furloughs and layoffs have begun. If a major county like that can’t keep it’s employees, how will theirs? It’s the question most asked by her coworkers: “Have you heard about layoffs? Have you heard about furloughs?” 

“We think people right now are on the balls of their feet wondering if this is going to be something that affects us,” Jaramillo said. 

In Gatesville, Texas, home to half a dozen female state prisons, corrections officer and union president Tanisha Woods is hoping her job remains in its essential capacity, helping her escape any upcoming cuts. 

But when she looks around her, at a region dominated by public services that support the prisons, she worries about her union membership. (The public sector has higher-than-average union participation, with about 35 percent of workers under a contract compared to about 7 percent of private workers.)

“It’s a small town, a small community, and really I think it’s the prisons that really drive the business,” she said. “I haven’t heard anything about cuts. I don’t think it starts getting real until we actually see it happen.” 

A legislative stopgap

The decisions Congress makes in the coming months will shape how deep the cuts could be later. 

“If Congress comes and steps in and fills in budget shortfalls, there don’t have to be any state and local job losses,” said EPI’s Shierholz. “It’s like a complete unforced error on the part of the federal government.”  

But the House and the Senate have been in a deadlock for weeks about what to do in the next round of relief. The issue of how much to give cities and states is one of the points of contention. 

Democrats have pushed for nearly $1 trillion in additional state and local aid through the HEROES Act, while Republicans say the figure should stay at the $150 billion allotted in the initial CARES Act, but with some added flexibility on how state and local governments can use the money to cover gaps in fiscal years 2020 and 2021. (Earlier in the year, the funds were only to be used to cover coronavirus-related expenses incurred beginning in March.) 

President Donald Trump signed an executive order in August to give $300 in weekly payments of federal unemployment insurance to laid-off or furloughed workers — half the previous amount — while states are expected to chip in an extra $100. So far, few checks have gone out.

The issue of public service aid has some bipartisan support. In early August, New York’s Democratic Gov. Andrew Cuomo and Arkansas’ Republican Gov. Asa Hutchinson — the chair and vice chair, respectively, of the National Governors Association — issued a joint letter calling for $500 billion in aid to states. 

“NGA continues to urge Congress and the White House to reach a quick resolution to provide immediate assistance to unemployed Americans. This resolution should avoid new administrative and fiscal burdens on states,” they wrote.

Republican Sen. Bill Cassidy has been a vocal supporter of additional aid to state and local governments, signing onto a bipartisan bill that would offer the $500 billion the NGA is looking for. But other GOP leaders are torn on the subject, saying some of the proposals are too costly and noting that some of the budget shortfalls predate coronavirus. 

If the two sides can’t decide, “a lot of people are going to get hurt,” said Saunders of the public service workers’ union.  “A lot of people are gonna be unemployed. A lot of people are going to rely upon services that are going to be reduced because of the fact that there’s no money available.”

Saunders, who has been with the union for 42 years, said this moment is an inflection point unlike any he’s experienced in his career. 

“This country is facing a challenge we’ve never faced before,” he said. “The question is how we adapt.” 

Republish this story

Share

  • Bluesky
  • Facebook
  • Email

Recommended for you

A woman with a child carries a box of food.
Unemployment continues to be highest for women of color, while it drops for White women
Women wearing protective masks wait in a queue to receive food assistance provided by the Second Harvest Food Bank of Central Florida at a food distribution event staffed by volunteers at the Calvario City Church. Food banks across the United States are being overwhelmed due to the thousands of people who have lost their jobs due to the coronavirus (COVID-19) pandemic.
The 19th Explains: How do Trump and Biden plan to handle an economic recovery?
A woman sits on the floor with an infant.
Jobs are coming back in hospitality and child care. Women are benefiting
A woman walks past the the DC Department of Employment Services American Job Center.
Black women’s unemployment is up as hospitality and retail stopped adding jobs in August

The 19th News(letter)

News that represents you, in your inbox every weekday.

You have been subscribed!

Please complete the following CAPTCHA to be confirmed. If you have any difficulty, contact [email protected] for help.

Submitting...

Uh-oh! Something went wrong. Please email [email protected] to subscribe.

This email address might not be capable of receiving emails (according to Bouncer). You should try again with a different email address. If you have any questions, contact us at [email protected].

Become a member

Explore more coverage from The 19th
Abortion Politics Education LGBTQ+ Caregiving
View all topics

Our newsroom's Spring Member Drive is here!

Learn more about membership.

  • Transparency
    • About
    • Team
    • Contact
    • Privacy Policy
    • Community Guidelines
  • Newsroom
    • Latest Stories
    • 19th News Network
    • Podcast
    • Events
    • Careers
    • Fellowships
  • Newsletters
    • Daily
    • Weekly
    • The Amendment
    • Event Invites
  • Support
    • Ways to Give
    • Sponsorship
    • Republishing
    • Volunteer

The 19th is a reader-supported nonprofit news organization. Our stories are free to republish with these guidelines.