Employers added 3.1 million jobs in May, giving an unexpected boost to the labor market battered by the Covid-19 pandemic. But state and local governments are still cutting jobs, and it is expected to get worse very quickly. And with the end of most state fiscal years only weeks away, many more job cuts are likely unless Congress and the administration agree to some kind of relief package. Revenue sources for state and local governments have been decimated by the crisis. The sectors are responsible for jobs in every corner and community of the country, many of them good-paying, middle income professional jobs. About 30% of state employees are unionized, as are 40% of local government employees. That compares to only 6% of private sector workers.
https://www.hartfordbusiness.com/article/state-and-local-governments-could-kill-a-recovery-in-the-labor-market