U.S. cities are employing workers at the fastest pace since the Great Recession as increased property taxes and economic growth boosts spending for the second consecutive year.
A third of cities and towns boosted their payrolls in 2014, compared with job cuts in 18 percent, reported the National League of Cities. This marks the first year since 2008 that job growth has exceeded losses. 80 percent of the cities surveyed reported that their financial position has improved from a year ago, the strongest level in over 29 years.
“Growth in those jobs is a good sign for the economy,” Christiana McFarland, a research director at National League of Cities, was quoted by Bloomberg News. “Things are going in a positive direction.”
Whilst local administrations have employed 113,000 workers since March 2013, they are still 482,000 less workers than in July 2008, reported the U.S. Labor Department.
As home prices increase and the economy improves, tax collections have risen. When inflation is adjusted, property taxes increased 1.6 percent this year, a study of 354 cities that was carried out from April to June showed.
Sales taxes increased 3.6 percent in 2014, compared with a growth of 4.6 percent last year. Income taxes have risen 0.6 percent, down from an increase of 4.3 percent last year.
Cities are struggling to raise revenues in order to keep pace with surging costs. When inflation is factored in, total revenue growth fell 0.5 percent this year. On the other hand, expenditure increased by 1 percent, compared with an increase of 2 percent in 2013. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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