State and Local Governments Are Poised for IT Workforce Gains

State and Local Workforces Can Still Gain From Federal Cuts

Finance, procurement and IT are the most chronically vacant roles across the country, both at the state and local level, says Caitlin Lewis, executive director at Work for America. This isn’t new, but the surge of available talent in these areas is novel.

Work for America launched Civic Match in November 2024 to help place skilled workers in state and local government jobs. State and local hiring managers can use the platform directly, with a unique login, to promote opportunities.

“We never could have imagined or anticipated the volume of need that was going to occur post January 20,” Lewis says. “As of today, Civic Match has over 8,600 job seekers using the platform, living in all 50 states with a wide range of skill sets and experience.”

Most of those job seekers have more than 10 years of experience, according to Lewis. Upwards of 10% have tech and engineering experience, and nearly 10% have procurement and contract management experience.

“These are really talented, senior folks who want to be in communities across the country, and who desperately want to continue serving in government,” Lewis says.

More than 700 hiring managers in state and local governments across the country actively use Civic Match to find matches for open positions.

RELATED: States are employing a variety of tactics to close workforce gaps.

Procurement and Finance Will Benefit From AI-Centric Hirings

In April, Civic Match partnered with NASPO to help raise awareness for the importance of public procurement careers and to help newly out-of-work feds find opportunities to contribute their expertise to state and local agencies.

Procurement has been one of the earlier use cases for generative AI. Former North Carolina CIO Jim Weaver told StateTech that it was the state’s very first foray into GenAI.

But folding AI into procurement isn’t as simple as automating human roles. To the contrary, procurement and finance offices — along with most other departments at the state and local levels — require skilled people to help realize AI’s potential in achieving efficiencies at a time when funding cuts necessitate them.

“AI is not taking your job,” May said. “I would argue that we need the people and process changes to really embrace and understand what’s happening around AI systems.”

Like May, Lewis says that any changes AI makes to how procurement offices function will require human input.

“My favorite line I've ever heard about AI implementation is that AI is going to make IQ free and EQ priceless,” she says. “Because it does take humans to apply EQ, especially to massive process change in government.”

Some of the types of AI-specific roles that Lewis commonly sees demand for at the state and local levels include data and analytics experts, chief innovation officers, digital service leads, chief data officers and some AI policy analysts and technology transformation managers.

“There were a lot of folks in the federal government who were focused on this, and I think a lot of those roles and teams have been eliminated,” Lewis says. “But the knowledge that the folks who are in those roles have is going to be critical for helping to future-proof state and local governments.”

Government’s Secret Weapon: The Human Element

Competing with the private sector has historically been an issue for public-sector employers. But Civic Match survey data suggests that money isn’t everything.

“32% are open to taking a pay cut to be able to stay in government because of the recognition that these jobs provide wraparound stability,” Lewis says. “The percent of folks who are open to a pay cut leaps upward to 62% when paired with a lower cost of living.” Additionally, 54% of all candidates said they’re open to relocating for the right role.

Other benefits, such as flexible work options — which have been replaced by in-office mandates for many federal agencies — can be used as incentives, May says. What’s more, employees who aim to retire within the next five to 10 years may find the prospect of a pension more immediately appealing than a bigger paycheck.

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But there’s an even simpler appeal for working at the state and local level.

“It’s purpose-driven work,” May says. “It is about the impact to our citizens, and that applies to the tech sector as well.”

This is particularly true for procurement, which has historically been viewed as a back-office function. In reality, May says, procurement is a pillar of public service and must be marketed as such to prospective job seekers.

“How are we purchasing appropriate foster care services at a state level, or designing and building parks at the local level? How are we supplying schools with needed equipment?” May asks. “These are critical public services, and the end user is everyone in the community.”