Please take a look at this post from Mike Mandel on job growth over the last decade:
I divide the economy into two parts. On the one side are the combined public and quasi-public sectors, and on the other side is the rest of the economy. Public, of course, refers to government employees. ‘Quasi-public’, a term I just invented, includes the nominal private-sector education, healthcare, and social assistance industries. I call them ’quasi-public’ because these industries depend very heavily on government funding. For example, social assistance includes ‘child and youth services’ and ‘services for the elderly and disabled’, which are often provided under government contract.
As should surprise no one public and quasi-public employment has grown enormously over the past decade while fully private employment has dwindled. The attendant graph highlights my concerns.
The key problem here is that public and quasi-public jobs are funded by the fully private sector and by borrowing. The quasi-public sector is largely financed through payroll taxes. As fully private sector employment contracts less money will be available to fund the quasi-public sector and, in the absence of the will to change the formula by which these expenses are funded and a lack of will to reducing their funding, the only alternative is more borrowing.