The most recent state employment data from the U. S. Bureau of Labor Statistics shows that government continues to expand in Kansas while the private sector is shedding jobs.

Over the 12-month period ending in March, government jobs increased by 3,600, while Kansas lost 25,300 private sector jobs. Local government employment increased by 2,300 and federal jobs grew by 1,300; state employment was unchanged.

Private sector job losses do not reflect all of the recently announced layoffs, primarily in aviation manufacturing, tracked by Workforce Alliance of South Central Kansas.

Government jobs also expanded across the nation as private sector employment shrank, although not at the same pace as in Kansas.

Private sector losses are not as severe as the national trend (2.3 percent decline vs. 4.4 percent), but government employment growth in Kansas is outpacing the nation (1.4 percent vs. 0.4 percent).

The inverse relationship between government and private sector employment does not bode well for the economy.

“Economic research has consistently shown that the larger the government is relative to the economy, the slower the economy grows,” said Dr. Art Hall, executive director of the Center for Applied Economics at the University of Kansas School of Business. “We’ve known about that empirical data internationally and now it’s showing up at the local level.”

Americans for Prosperity released a recent study by Arduin, Laffer & Moore Econometrics showing the historical negative impact of increased government spending on the private sector. According to the study, the cost of accepting federal dollars from the American Recovery and Reinvestment Act of 2009 will reduce real net business output by 2.5 percent, which translates to a reduction of 1.7 million jobs annually — of which between 17,200 and 22,200 will be lost in Kansas.

Hall said adding some government jobs can help but others just cause more problems.

“The more we do this in the name of trying to help, the more we’re causing damage," Hall said. "It’s very much like overhead in business. Some overhead adds value, too much sinks the business.”

- Paul Soutar

Paul Soutar is an Investigative Reporter for Flint Hills Center for Public Policy. This article was edited for publication by Kansas Liberty.

To learn more about the Flint Hills Center, please visit www.flinthills.org.

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