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State government jobs are dominated by jobs at state universities, which are huge employers. For example, the University of California system employs 267,000 faculty and staff (data via University of California), nearly half of the state government’s total employees of 551,000 (data via BLS).
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Oh, for some reason I expected those to be counted separately.
University admins got hammered by a change in how grant funds can be spent, plus a ton of grants got canceled.
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I think the big downstream hit will be in public universities, but I'm not sure how long that will take.