The challenge and importance of strengthening municipal workforces.

By Jacob Gottlieb and Julia Bauer

Research by the National League of Cities (NLC) highlights how cities, towns, and villages are leveraging American Rescue Plan Act’s (ARPA) State and Local Fiscal Recovery Fund (SLFRF) dollars to bolster their staff. The COVID-19 pandemic created significant labor loss across all sectors. After more than two years, some areas have experienced employment recovery, but local governments have struggled to retain workers.

From March 2020 to March 2022, local government employment (excluding education) declined by 4.48 percent—about 18 times more than nonfarm employment. During that same period, all government employment (excluding education) in Washington state declined by 3.20 percent. It is the hard work of municipal employees that truly makes cities operate. Without adequate staffing, vital services like trash collection and emergency response may be delayed.

Workforce challenges

Employees are leaving municipal jobs for a variety of reasons. For one, retirements accelerated during the pandemic more than in other sectors. As many retirement-age municipal workers begin transitioning out of the workforce, local governments will struggle to fill various mid-to-upper management roles with qualified candidates because of historical underinvestment in talent pipelines into local government roles. Other factors identified by municipal employers, such as non-competitive pay and a lack of advancement opportunities, have made it harder for local governments to attract and retain workers.

Local governments need to invest more in both the general public-sector workforce, and in youth and young professional development programs to combat leadership loss and improve service delivery.

The Biden administration has encouraged local governments to use their SLFRF allocations to rebuild their workforces. While some communities have made significant investments, others could be doing more. An NLC analysis of SLFRF spending data from large metropolitan governments found that of the nearly $8.68 billion in SLFRF funding allocated for use by December 2021, local governments invested about $1.25 billion (approximately 15 percent) into their workforces. Local governments designated most of those funds towards short-term hiring and pay bonuses.

These short-term investments are crucial to getting local government services back on track. However, they must consider developing long-term, sustainable talent pipelines. Local governments need to invest more in both the general public-sector workforce and youth and young professional development programs to combat leadership loss and improve service delivery.

A focus on youth

Some cities across the nation are already taking action. For example, St. Louis, Missouri, allocated $2.7 million in ARPA funds to the St. Louis Agency on Training and Employment (SLATE) “to support ongoing efforts to connect city youth with jobs in summer.” SLATE partners with the city’s youth jobs program to connect 16- to 24-year-olds with paid public and nonprofit positions, provides mentoring and networking opportunities, and helps them develop public speaking skills and complete job readiness and financial literacy training. There are currently hundreds of interested participants on the waitlist and the program needs additional staff.

Similar programs can be implemented for early or mid-level professionals who are interested in advancing their skillset or changing their career path. As municipalities continue bolstering their workforces, providing opportunities and resources for everyone interested in public-sector work is critical to improving local government service delivery, local and regional economic development, and resident outcomes.

Additionally, implementing programs that provide pathways for youth and nontraditional applicants can strengthen municipal retention and recruitment. Youth engagement programs have the added benefit of increasing diversity in the workforce to more closely match the community it serves, as younger generations are more diverse across the US than their older counterparts. Additionally, historically underserved communities are less likely to know how to get involved.

Looking forward, rebuilding public workforces after the pandemic will continue to impact municipal recovery and service delivery, especially as inflation rises and the potential for a recession looms. Local leaders should use the federal lifelines they have to innovatively address longstanding issues around their workforce and consider new ways to improve retention and recruitment strategies.

Julia Bauer and Jacob Gottlieb are research specialists within the NLC’s Center for City Solutions. To learn more about the strategies local governments are using to bolster their cities’ staff, check out NLC’s brief “The Municipal Workforce Through the Pandemic: Where Are We Now?” available online at nlc.org/resource.

For more information: nlc.org