From the same report:

The job losses don't tell the full picture of the pain the labor market either. The average hourly work week fell to 33 hours from 33.1 hours in May, a record low in readings that go back to 1964. Average hourly wages were unchanged, so the shorter week shaved $1.85, or 0.3%, off of the average weekly paycheck.

The so-called underemployment rate, which counts those who are working part-time jobs because they couldn't find a full-time position as well as discouraged job seekers who have stopped looking for work, rose to a record high 16.5%.

It seems like many people are being affected at least a little. Even if they have a job, they are earning less.

Government jobs have long been considered "safe" jobs. The ones that kept the economy going during recessions, though they paid less in good times. But even they aren't unaffected. States like NY and Hawaii have forced 3 unpaid furlough days a month - equivalent to a 14% pay cut. In Hawaii's case, for two years.

The SacBee had an interview with a lawyer who had planned a career working for state. He ended up leaving for private industry, because the pay was 50% higher, and he needed to pay off his student loans. He's now working for his former union, suing the state to prevent furloughs.

Pennsylvania has no budget yet, and their state workers will receive partial payments the next couple of weeks, then not be paid at all if the budget isn't settled.

California has no budget either, and we're set to start issuing IOUs today as the state runs out of cash.

http://www.latimes.com/news/local/la-me-california-budget2-2009jul02,0,4...

"States like NY and Hawaii have forced 3 unpaid furlough days a month"

Not so in the case of New York. We haven't had any furlough days for state employees.

Sorry, I mean California, not NY.

Also in WI, at least for UW State employees. so far, 4/yr but expecting more.

OH, too. I think five furlough days per year in the new state employee contract.

In a fiat world, all the state has to do is declare "this is money to settle debts with the state", then issue said "money".