Soft wages hamper U.S. public sector jobs recovery, Morgan Stanley says

) (Bloomberg) – Jobs in U.S. state and local governments will require another three A basis 2020 Morgan Stanley (NYSE: 100MS) Economist. Although the labor market in the private sector has surpassed pre-pandemic levels in June, the recovery in local government employment has been sluggish, and these jobs will not fully recover until ten February2022, according to the bank’s Analysts Monday. despite saving almost $ billion in wage reductions over the past 2 1/2 years , except $000 With billions in pandemic-related relief from the federal government, state and local officials are having trouble luring workers. Additional funds will take longer to be allocated to public sector workers as wages are mostly in the annual budget definite. Meanwhile, employers in the private sector, especially in the services and transport sectors, have been rapidly raising wages to attract workers. Early retirement also hit the government sector the hardest, leaving an even bigger void. Local government jobs, including education, are still more than half a million below their pre-pandemic peak. Recruitment at the state level is more successful and total employment is more manageable , Below February