Editorial Staff

Report Contrasts State Government and Private Sector Employment Changes During Pandemic

/in , , , , , , /by Editorial Staff
Share on Facebook
Share on Twitter
Share on
LinkedIn
+

Read coverage of this report in Patch: “MA State Workers Had More Job Security In Pandemic: Study.”

BOSTON – Massachusetts state government employment has been virtually flat during COVID-19 even as employment in the state’s private sector workforce remains nearly 10 percent below pre-pandemic levels, according to a new study published by Pioneer Institute. The study, “Public vs. Private Employment in Massachusetts: A Tale of Two Pandemics,” questions whether it makes sense to shield public agencies from last year’s recession at the expense of taxpayers.

“Compared to restaurants, retailers and other businesses, there was very little pressure on state government to cut costs associated with COVID’s economic fallout,” said Serena Hajjar, who authored the study. “The private sector has felt the bulk of the pain of this contraction.”

At one point in April 2020, total employment in Massachusetts was 23 percent below pre-pandemic levels, while at the same time state-level government employment was higher than it was in February 2020.

Using Pioneer Institute’s state employee tracker in MassOpenBooks, researchers highlight employment changes among particular state agencies. As might be expected during a pandemic, the Department of Children and Families and the Department of Public Health have higher employment levels than before the pandemic. Perhaps more surprisingly, the MBTA, whose ridership stands at a third of February 2020 levels, has also gained employees.

Some large educational, law enforcement, and judicial institutions have lost employment. The University of Massachusetts system and the Department of Corrections experienced 4 and 3 percent year-over-year employment declines, respectively.

In the private sector, employment in the leisure and hospitality sector — which includes bars, restaurants, and hotels — hasn’t surpassed 70 percent of pre-pandemic levels since last spring. As of February 25, 2021, in-store retailers still face a 50 percent occupancy cap due to ongoing virus concerns. Over the 12-month period ended January 31, 2021, the number of small businesses open in Massachusetts declined by nearly 38 percent.

“During the pandemic the private sector took it on the chin while public sector employees, for the most part, were treated as a protected class,” said Pioneer Institute Executive Director Jim Stergios. “To turn around now and raise taxes to placate public sector unions’ desire to bolster their ranks is willful blindness to reality. State employees represent 3 percent of all employees in the Commonwealth. Coming out of the pandemic, the legislature needs to focus on growing private sector jobs, not taxing them.”

About the Author

Serena Hajjar is an independent contractor at Pioneer Institute, focusing on transparency around the state’s reporting of coronavirus figures and the effects of the coronavirus response on the state economy. Ms. Hajjar is a recipient of the Fulbright English Teaching Assistant Grant to Russia for the 2020–21 cycle. She has a B.A. in international relations and Russian and Eastern European studies from the University of Pennsylvania.

About Pioneer

Pioneer’s mission is to develop and communicate dynamic ideas that advance prosperity and a vibrant civic life in Massachusetts and beyond.

Pioneer’s vision of success is a state and nation where our people can prosper and our society thrive because we enjoy world-class options in education, healthcare, transportation, and economic opportunity, and where our government is limited, accountable and transparent.

Pioneer values an America where our citizenry is well-educated and willing to test our beliefs based on facts and the free exchange of ideas, and committed to liberty, personal responsibility, and free enterprise.

Get Updates on Our Economic Opportunity Research

Related Content:

Anuradha Sajjanhar, PhD on Immigrants’ Role in Pandemic Recovery

This week on JobMakers, host Denzil Mohammed talks with Dr. Anuradha Sajjanhar, lead researcher for the report Immigrant Essential Workers During the COVID-19 Pandemic published by The Immigrant Learning Center, co-producer of this podcast. She found that immigrants, despite playing an outsized role in industries deemed essential such as healthcare, food and agriculture, and the supply chain, were largely left out of federal and state support during the pandemic, which negatively affected their safety and their efforts to help Americans weather this crisis. The report offers a path forward, as you’ll learn in this week’s JobMakers.

Fair Share Flimflam: Misleading Ballot Summary Could Distort Voter Choice

Joe Selvaggi talks with Attorney Kevin Martin, appellate litigator at Goodwin Proctor, about the complaint filed with the Massachusetts Supreme Judicial Court regarding the summary language on the 2022 "Fair Share Tax” ballot initiative. Kevin explains how the language misleads the public about the impact of their vote on revenue, spending, and our state’s constitution.

Pioneer Supports Legal Challenge to Misleading Tax Ballot Language, Releases Video

Pioneer Institute supports the diverse and bipartisan group that filed a complaint with the Massachusetts Supreme Judicial Court (SJC) challenging the summary language meant to provide an accurate description of the tax hike amendment to voters. The language was approved by the Attorney General and Secretary of the Commonwealth when a similar amendment was proposed in 2018, and unless the lawsuit is successful, will likely appear on the Massachusetts ballot in November.

Rodrigo Souza Cooks Up Success

This week on JobMakers, host Denzil Mohammed talks with Rodrigo Souza, immigrant from Brazil and owner of Comeketo Brazilian Steakhouse in Leominster, Massachusetts. Drawing on the resourcefulness and doggedness of his Brazilian culture, Rodrigo built a successful business here in the United States, creating around 400 jobs since his restaurant opened in 2009.

Gaetan Kashala Gives Immigrants a Leg Up

This week on JobMakers, host Denzil Mohammed talks with Gaetan Kashala, immigrant from the Democratic Republic of Congo, co-founder of Globex Corporate, a consulting firm connecting the U.S. to Central and Western African businesses and governments, and also the engagement director for AIM, the Associated Industries of Massachusetts.

Study Raises Concern That Annual T Fare Evasion Costs Could Rise By More Than $30 Million Under AFC 2.0

According to the Federal Transit Administration (FTA), the MBTA’s $935.4 million fare collection system (AFC 2.0) that is scheduled to be implemented in 2023 will reduce fare evasion by $35 million over a decade. But the T announced in 2021 that evasion could actually increase by up to $30 million under AFC 2.0, and now a Pioneer Institute study warns that insufficient fare enforcement could drive that figure even higher under the new system.

Study: Tax Up For A Vote In November Would Ensnare Over Three Times More Taxpayers Than Previously Estimated

Analyses from the Massachusetts Department of Revenue (MADOR, 2016) and Tufts University’s Center for State Policy Analysis (2022) dramatically underestimated the number of households and businesses impacted by the constitutionally-imposed tax hike that the legislature is putting before voters in November 2022, according to a new study from Pioneer Institute.

David Keane On How Taking Risks On Immigrants Pays Off

This week on JobMakers, host Denzil Mohammed talks with David Keane, immigrant from Australia and founder of Bigtincan, an artificial-intelligence-powered sales enablement platform for leading companies worldwide. David believes that what makes the U.S. special is its culture both of welcoming immigrants and being willing to try new things, to take risks.

Johan Norberg on How Diversity Drives Progress

This week on JobMakers, host Denzil Mohammed talks with Johan Norberg, senior fellow at the Cato Institute and author of Open: The Story of Human Progress. They discuss the many ways in which America is better off because it has been open to the exchange of ideas and skills that created cures, machinery, and technology.

Jeff Farrah on Why We Need a Start-Up Visa

This week on JobMakers, host Denzil Mohammed talks with Jeff Farrah, General Counsel at the National Venture Capital Association, a D.C.-based group that advocates for public policy supportive of American entrepreneurship.

Carlos Castro: From Crossing the Border to Owning a Business

This week on JobMakers, host Denzil Mohammed talks with Carlos Castro, president and CEO of Todos Supermarket in Woodbridge, Virginia, a successful business employing more than 200 people. He describes the perilous conditions in his native El Salvador, why he crossed the border to America, and why immigrant business owners tend to hire people like them, in this week’s JobMakers.

Alex Nowrasteh on How Immigration Is a Boon to the U.S.

This week on JobMakers, host Denzil Mohammed talks with Alex Nowrasteh, the Cato Institute’s director of immigration studies and author of “The Most Common Arguments Against Immigration and Why They’re Wrong.” This week, Alex hones in on a fact that research has consistently found: that immigrants benefit Americans. And, based on his many years of speaking on this topic to anti-immigrant audiences, he provides insight on where anti-immigrant arguments really come from, as you’ll find out in this week’s JobMakers.