Here's The Fundamental Reason Today's Jobs Report Was Way Better Than Expected

Public sector job lossesThey weren’t there this month.

In past months they’ve been crushing, sharply counteracting modest private sector job creation.


And you could have predicted that we’d have seen improvement based on this chart from Deutsche Bank:

State tax collections have been rebounding, and state tax collection growth is a leading indicator (obviously) of state employment levels

So watch this number, because one of the key question now is how local governments will hold up sans support form the Federal Government

87% of cities are Less Able to meet fiscal needs compared to last year

Cities that depend on property tax suffer the most

Western cities -- home to the largest property collapse -- are having the hardest time

Revenues have fallen for four straight years. Austerity really kicked in this year

Property tax revenues posted the largest decline this year and last

Here are the details on factors influencing the budget.

Here's the impact of those factors on the budget. ALMOST ALL NEGATIVE

And now the austerity measures: Personnel cuts, delayed projects and cuts in services lead the barrage

Forms of personnel cuts include hiring freezes, reduced expense accounts, and salary freezes -- and layoffs

Now here's how they're making up revenue: NEW TAXES AND FEES

Cities CANNOT run over the budget -- unlike the federal government -- but they're coming close

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