The Obama Diary

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Paul Davidson: Local Government Hiring Picks Up

After laying off workers through most of the recovery, city and county governments are adding jobs at the fastest pace in five years, providing support for the economy’s overall payroll gains. Stronger economic growth is driving higher municipal revenue, allowing local governments to add police officers and firefighters, reopen shuttered parks and make long-deferred street repairs. “We’re beginning to see cities and towns coming out of the Great Recession,” says Neil Bomberg, a program director for the National League of Cities. Mark Zandi, chief economist of Moody’s Analytics, notes that total U.S. payroll gains have topped 200,000 each of the past four months.

Our businesses have added: 9.4 million jobs over 51 months ✔ More than 1 million this year ✔ 216,000 in May ✔ → http://t.co/xrxny1RSEc

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The White House (@WhiteHouse) June 06, 2025

Counties, cities, see hiring spike. Jobs growing at fastest pace in 5 years... usatoday.com/story/money/bu… http://t.co/MbDtCscYVn

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Arapaho415 (@arapaho415) June 24, 2025

Local governments are on more solid financial footing in part because of a gradual rise in home values that have boosted property tax collections, says Michael Pagano, dean of the college of urban planning and public affairs at the University of Illinois-Chicago. Earlier this year, Columbus, Ohio, passed an $807 million operating budget, its largest ever, that restores six recreation centers that had been open part-time to full-time status. The city’s finances have been stable since it raised its income tax to 2.5% from 2% in 2009, says Dan Williamson, spokesman for Mayor Michael Coleman.

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