US States and Cities Add Jobs as Private-Sector Growth Cools (1)

US states and cities added about 65,000 jobs last month, pushing their combined payrolls far above pre-pandemic levels in a trend that contrasts with a slowing private-sector market.

Buoyed in part by remaining federal pandemic aid, the hiring drove almost a third of total US non-farm payroll growth in June, according to federaldata released Friday. The municipalities have increased personnel in every month but one since early 2022.

States and localities now employ almost 20.4 million people, more than 300,000 above the level on the eve of the pandemic. The outbreak triggered an abrupt shutdown of schools and ...