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Discussion Paper
The Restrained Recovery of State and Local Government Payrolls from the Pandemic Recession
On the eve of the outbreak of the COVID-19 pandemic, state and local government (S&L) employment in the U.S. stood at 20 million. In the first three months of the pandemic, S&L payrolls plunged 1.5 million as social distancing reduced the need for many government services, such as in-person schooling, and S&L governments feared sharp revenue declines.