The Hiring Crisis at America’s Largest Employer

The Hiring Crisis at America’s Largest Employer

  • The US government, especially at the local and state levels, is the country’s largest employer, forming an important part of communities and local economies. Since 2022, state and local government job postings have surged, outpacing the growth in private sector opportunities.
  • State and local governments take about twice as long to interview candidates on average and offer lower base salaries, thereby hindering governments’ ability to attract talent.
  • While government salaries lag behind the private sector, government jobs offer stronger job security, pensions, and benefits. As a result, as the economy softens and economic uncertainty increases, government work becomes more appealing to many more people.

State and local governments form the backbone of our communities and local economies, providing critical public services, including local administration, infrastructure maintenance, education, and emergency response. In recent years, especially following the pandemic and the “Great Resignation,” local governments have experienced a major exodus of talent, creating an urgent need to quickly fill critical positions.

Reflecting this trend, Revelio Labs’ workforce data shows that the number of state and local government job postings has increased dramatically since 2022. Despite the increase in open roles, governments’ ability to fill those roles has not kept pace. This has created a talent shortfall, with serious implications for public services and governance.


This week, with insights from Work for America, who spoke to government talent leaders across the country for their recent report From the Frontlines, we explore some of the factors leading to staffing shortages in cities and states across the country.

While the number of job postings in state and local government has grown dramatically over the past two years compared to the private sector, workforce growth has not kept pace. The struggle to fill these roles is driven by several factors, including lengthy hiring processes and lower-than-market salaries for some roles.

One key obstacle to securing talent for local governments jobs is the lengthy recruitment process, something that is frequently cited by local and state government leaders who informed Work for America’s report. Local and state governments are often slower than the private sector in filling roles, with interview processes that last about twice as long as the private sector on average and extended decision timelines. Not only does this leave agencies short-staffed for longer periods, but it also discourages potential applicants, who may accept private sector offers before the government hiring process is completed.


Read the full story here.

Happy Thursday

Dean Boerner & Lisa K. Simon


This is a fascinating topic to explore! The balance between job satisfaction and compensation is so crucial. What insights did you gather from your research on government jobs?

回复
Soumitra Shukla

Yale-trained economist thinking about labor, organizational, and personnel economics

6 个月

Very interesting! Did not know that the interview process is nearly 2x(!) longer in government. I wonder how much additional diagnostic value prolonged screening processes provide to employers; if anything they seem to be losing out on talented candidates by dragging things too long. Another thing that struck me as interesting was that the attrition rates across private and government roles seemed quite comparable (8-11%). My prior was that these disparities would be much larger in favor of govt roles.

Christos Makridis

Digital Finance | Labor Economics | Data-Driven Solutions for Financial Ecosystems | Fine Arts & Technology

6 个月

Compensating differentials are a huge issue - take a look at my paper below on this point https://www.sciencedirect.com/science/article/pii/S2667319321000021

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