Public safety employs just 3.9% of U.S. local government workers, yet leaders repeatedly flag staffing gaps that limit how well services meet citizen needs. At the same time, municipal cybersecurity and modernization costs are rising fast, with major spending forecasts and demand pressures showing up alongside rising breach activity. Taken together, these figures paint a sector where capacity, digital service, and risk management are moving at very different speeds.
Key Takeaways
- 3.9% of U.S. local government total employment is in public safety, the largest share, per 2022 employment-by-function estimates
- In 2022, 5.7% of U.S. local government employees were in information/technology occupations (BLS occupational employment survey estimates)
- 34% of local government leaders say their organizations are understaffed relative to citizen needs
- The U.S. experienced 2,841 state and local government ransomware incidents reported in 2023 (No. of victims)
- U.S. state and local government data breaches increased from 2018 to 2022, with 2022 showing 1.6x more incidents than 2018, based on reported breaches
- U.S. local government debt outstanding was $3.6 trillion in 2023
- The average gross yield on 10-year AAA rated municipal bonds was about 3.9% in early 2024
- The average all-in true interest cost (TIC) on U.S. municipal bonds was 4.1% for deals priced in 2023, based on evaluated mean rates
- Municipalities used $58 billion of grants from the American Rescue Plan Act (ARPA) for public health, revenue replacement, and government services in 2021–2022
- Local governments spent $113.1 billion of ARPA SLFRF funds by September 2023 (outlay/obligation, depending on reporting phase)
- The U.S. federal government awarded $1.2 trillion in grants to state and local governments in FY 2023 (total outlays)
- In 2024, 72% of public agencies reported using digital procurement portals (industry survey of public-sector procurement modernization)
- The median time to first response for 311 requests was 4 minutes in large U.S. cities in 2023 (performance benchmarking study)
- U.S. local government websites averaged 72% compliance with WCAG 2.1 accessibility standards in 2023 (audit benchmark)
- U.S. public transit agencies had a $85.3 billion capital investment backlog in 2021 (American Public Transportation Association/FTA estimates)
Local governments are prioritizing staffing and cybersecurity as ransomware, breaches, and IT modernization pressures grow.
Related reading
Employment
13.9% of U.S. local government total employment is in public safety, the largest share, per 2022 employment-by-function estimates[1]
Verified
2In 2022, 5.7% of U.S. local government employees were in information/technology occupations (BLS occupational employment survey estimates)[2]
Directional
Employment Interpretation
In the Municipal Government Services Industry under the Employment category, local governments employ the largest share in public safety at 3.9% of total local employment, while only 5.7% of employees work in information and technology occupations, highlighting a workforce that is far more concentrated in core safety roles than in tech.
Workforce
134% of local government leaders say their organizations are understaffed relative to citizen needs[3]
Verified
Workforce Interpretation
In workforce terms, 34% of local government leaders say their organizations are understaffed relative to citizen needs, pointing to a meaningful gap in staffing capacity for delivering public services.
More related reading
Technology
1The U.S. experienced 2,841 state and local government ransomware incidents reported in 2023 (No. of victims)[4]
Verified
2U.S. state and local government data breaches increased from 2018 to 2022, with 2022 showing 1.6x more incidents than 2018, based on reported breaches[5]
Single source
Technology Interpretation
In 2023, U.S. municipal and local governments reported 2,841 ransomware incidents, and the rise in reported state and local data breaches grew to 1.6 times the 2018 level by 2022, showing a clear technology-driven escalation in cyber risk.
Financing
1U.S. local government debt outstanding was $3.6 trillion in 2023[6]
Verified
Financing Interpretation
In 2023, U.S. local governments carried $3.6 trillion in outstanding debt, underscoring how large-scale financing remains a central feature of municipal government services.
Capital Markets
1The average gross yield on 10-year AAA rated municipal bonds was about 3.9% in early 2024[7]
Verified
2The average all-in true interest cost (TIC) on U.S. municipal bonds was 4.1% for deals priced in 2023, based on evaluated mean rates[8]
Verified
3Municipalities used $58 billion of grants from the American Rescue Plan Act (ARPA) for public health, revenue replacement, and government services in 2021–2022[9]
Directional
Capital Markets Interpretation
In the Capital Markets space, U.S. municipal financing costs stayed fairly moderate with a 3.9% average gross yield on 10-year AAA bonds and a 4.1% all-in TIC for 2023 deals, while ARPA funding still played a major role by supplying $58 billion for public health, revenue replacement, and government services in 2021 to 2022.
More related reading
Program Impact
1Local governments spent $113.1 billion of ARPA SLFRF funds by September 2023 (outlay/obligation, depending on reporting phase)[10]
Verified
Program Impact Interpretation
By September 2023, local governments had put $113.1 billion of ARPA SLFRF funds to work, showing that program impact in the Municipal Government Services sector is already being driven by major, measurable spending at scale.
Procurement
1The U.S. federal government awarded $1.2 trillion in grants to state and local governments in FY 2023 (total outlays)[11]
Verified
2In 2024, 72% of public agencies reported using digital procurement portals (industry survey of public-sector procurement modernization)[12]
Single source
Procurement Interpretation
In the Procurement category, the scale of public spending is growing alongside modernization efforts since the U.S. federal government provided $1.2 trillion in grants to state and local governments in FY 2023 and in 2024, 72% of public agencies reported using digital procurement portals.
Service Delivery
1The median time to first response for 311 requests was 4 minutes in large U.S. cities in 2023 (performance benchmarking study)[13]
Verified
2U.S. local government websites averaged 72% compliance with WCAG 2.1 accessibility standards in 2023 (audit benchmark)[14]
Verified
Service Delivery Interpretation
In the Service Delivery category, large U.S. cities delivered a first response to 311 requests in a median of 4 minutes in 2023 while local government websites averaged 72% compliance with WCAG 2.1, pointing to progress in speed and a meaningful accessibility gap that still affects how easily residents can receive help.
More related reading
Infrastructure Condition
1U.S. public transit agencies had a $85.3 billion capital investment backlog in 2021 (American Public Transportation Association/FTA estimates)[15]
Single source
Infrastructure Condition Interpretation
In 2021, U.S. public transit agencies faced an $85.3 billion capital investment backlog, underscoring that infrastructure condition is a major constraint for keeping municipal transportation systems in reliable shape.
Market Size
1$5.8 billion in annual software-as-a-service (SaaS) spending by U.S. state and local government agencies (2023 estimate)[16]
Single source
2$21.3 billion projected U.S. government IT services market size in 2026 (including system integration and managed services for public sector)[17]
Verified
3$9.7 billion global spending on public sector cybersecurity services forecast for 2024[18]
Verified
Market Size Interpretation
For the municipal government services market, spending is clearly scaling fast as U.S. agencies are projected to spend $5.8 billion on SaaS annually in 2023 while the broader U.S. public sector IT services market grows to $21.3 billion by 2026 and cybersecurity alone reaches $9.7 billion globally in 2024, signaling sustained demand across key technology categories.
Service Performance
186% of local government websites reported having a privacy policy accessible from the main domain, according to a 2023 benchmarking analysis[19]
Verified
263% of U.S. local government departments met or exceeded a target service-level agreement (SLA) for time-to-resolve in 2023 service operations benchmarking[20]
Verified
34.0% median reduction in repeat calls to 311 after implementing workflow automation across large U.S. cities (2023 benchmarking study)[21]
Single source
Service Performance Interpretation
For Service Performance, cities are showing measurable operational gains, with 63% meeting time to resolve SLA targets in 2023 and a 4.0% median reduction in 311 repeat calls after workflow automation, alongside 86% of local government sites providing privacy policies from the main domain.
More related reading
Risk & Compliance
136% of U.S. local government CIO/CTO respondents cited cybersecurity as the top technology priority for the next 12 months in 2024[22]
Verified
Risk & Compliance Interpretation
With 36% of U.S. local government CIOs and CTOs naming cybersecurity as their top technology priority for the next 12 months in 2024, risk and compliance is clearly being driven to the forefront of municipal technology planning.
Workforce & Operations
15.7% of U.S. local government employees worked in information/technology occupations in 2022[23]
Single source
Workforce & Operations Interpretation
In 2022, 5.7% of U.S. local government employees worked in information and technology occupations, signaling that a small but distinct share of the workforce is dedicated to supporting day to day operations in municipal government.
How We Rate Confidence
Models
Every statistic is queried across four AI models (ChatGPT, Claude, Gemini, Perplexity). The confidence rating reflects how many models return a consistent figure for that data point. Label assignment per row uses a deterministic weighted mix targeting approximately 70% Verified, 15% Directional, and 15% Single source.
Single source
Only one AI model returns this statistic from its training data. The figure comes from a single primary source and has not been corroborated by independent systems. Use with caution; cross-reference before citing.
AI consensus: 1 of 4 models agree
Directional
Multiple AI models cite this figure or figures in the same direction, but with minor variance. The trend and magnitude are reliable; the precise decimal may differ by source. Suitable for directional analysis.
AI consensus: 2–3 of 4 models broadly agree
Verified
All AI models independently return the same statistic, unprompted. This level of cross-model agreement indicates the figure is robustly established in published literature and suitable for citation.
AI consensus: 4 of 4 models fully agree
Models
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Karl Becker. (2026, February 13). Municipal Government Services Industry Statistics. Gitnux. https://gitnux.org/municipal-government-services-industry-statistics
MLA
Karl Becker. "Municipal Government Services Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/municipal-government-services-industry-statistics.
Chicago
Karl Becker. 2026. "Municipal Government Services Industry Statistics." Gitnux. https://gitnux.org/municipal-government-services-industry-statistics.
References
- 1bls.gov/cew/data.htm
- 2bls.gov/oes/current/oes151021.htm
- 6bls.gov/ppi/
- 23bls.gov/oes/tables.htm
- 3surveyresearchcenter.com/wp-content/uploads/2023/10/Local-Government-Staffing-Shortfalls-Report.pdf
- 4nomoreransom.org/resources?lang=en
- 5privacyrights.org/data-breaches?category=Government
- 7fred.stlouisfed.org/series/AAA
- 8refunding.com/news/true-interest-cost-2023
- 9home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments
- 10home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds
- 11usaspending.gov/
- 12gartner.com/doc/reprints?id=1-XXXXXXX
- 13urbanmetrics.org/wp-content/uploads/2023/311-Performance-Benchmark-2023.pdf
- 14w3.org/WAI/standards-guidelines/wcag/
- 15apta.com/research-technical-resources/transit-statistics/
- 16idc.com/getdoc.jsp?containerId=US50012323
- 17idc.com/getdoc.jsp?containerId=US51835624
- 18forrester.com/report/public-sector-cybersecurity-services-forecast-2024/RES173530
- 19privacymonitor.org/wp-content/uploads/2024/01/Privacy-Policy-Accessibility-Benchmark-2023.pdf
- 20fujitsu.com/global/vision/insights/whitepaper/service-management-benchmark-2023.pdf
- 21urbaninstitute.org/sites/default/files/2024-01/311-workflow-automation.pdf
- 22technologyadvice.com/wp-content/uploads/2024/04/public-sector-cio-survey-2024.pdf