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Will Workers Survive State Budget Belt-Tightening?

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Publisher(s): Center for Economic and Policy Research

Author(s): Matthew Sherman

Topic: Labor (Employment and labor supply)

Keywords: Recession; State funds; Unemployment rate

Type: Brief

Coverage: United States


As state governments face budget gaps of tens of billions of dollars in FY2009 and FY2010, this issue brief calculates the potential detrimental effects of state budget cuts on unemployment. While Congress considers a national economic recovery package, this issue brief highlights the fact that aid to state and local governments could help avoid spending cuts and ensuing job losses.