Local government payrolls shrunk by 6,000 nationwide last month after declining 1,000 in December, with education positions accounting for most of the workforce reductions. State governments saw a slight uptick in employment, adding an estimated 2,000 jobs last month.
Employment has remained mostly unchanged at both the state and local level since October, when governments cut a combined 54,000 positions, according to Labor Department estimates.
Friday's jobs report signaled economic growth remains slow, with the national unemployment rate increasing from 7.8 to 7.9 percent. The economy added 157,000 jobs in January, according to preliminary figures, down from 195,000 in December.
The Labor Department also benchmarked last year’s monthly employment estimates using the Quarterly Census of Employment and Wages. The revised monthly figures show that while states and localities continued to make cuts last year, public sector jobs losses were less severe than in 2010 and 2011.
View updated seasonally-adjusted figures in our chart:
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