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
01 · Category
Employment2 stats
01
3.9% of U.S. local government total employment is in public safety, the largest share, per 2022 employment-by-function estimates
02
In 2022, 5.7% of U.S. local government employees were in information/technology occupations (BLS occupational employment survey estimates)
Interpretation
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.
02 · Category
Workforce1 stats
01
34% of local government leaders say their organizations are understaffed relative to citizen needs
Interpretation
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.
03 · Category
Technology2 stats
01
The U.S. experienced 2,841 state and local government ransomware incidents reported in 2023 (No. of victims)
02
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
Interpretation
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.
04 · Category
Financing1 stats
01
U.S. local government debt outstanding was $3.6 trillion in 2023
Interpretation
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.
05 · Category
Capital Markets3 stats
01
The average gross yield on 10-year AAA rated municipal bonds was about 3.9% in early 2024
02
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
03
Municipalities used $58 billion of grants from the American Rescue Plan Act (ARPA) for public health, revenue replacement, and government services in 2021–2022
Interpretation
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.
06 · Category
Program Impact1 stats
01
Local governments spent $113.1 billion of ARPA SLFRF funds by September 2023 (outlay/obligation, depending on reporting phase)
Interpretation
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.
07 · Category
Procurement2 stats
01
The U.S. federal government awarded $1.2 trillion in grants to state and local governments in FY 2023 (total outlays)
02
In 2024, 72% of public agencies reported using digital procurement portals (industry survey of public-sector procurement modernization)
Interpretation
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.
More related reading
08 · Category
Service Delivery2 stats
01
The median time to first response for 311 requests was 4 minutes in large U.S. cities in 2023 (performance benchmarking study)
02
U.S. local government websites averaged 72% compliance with WCAG 2.1 accessibility standards in 2023 (audit benchmark)
Interpretation
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.
09 · Category
Infrastructure Condition1 stats
01
U.S. public transit agencies had a $85.3 billion capital investment backlog in 2021 (American Public Transportation Association/FTA estimates)
Interpretation
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.
10 · Category
Market Size3 stats
01
$5.8 billion in annual software-as-a-service (SaaS) spending by U.S. state and local government agencies (2023 estimate)
02
$21.3 billion projected U.S. government IT services market size in 2026 (including system integration and managed services for public sector)
03
$9.7 billion global spending on public sector cybersecurity services forecast for 2024
Interpretation
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.
11 · Category
Service Performance3 stats
01
86% of local government websites reported having a privacy policy accessible from the main domain, according to a 2023 benchmarking analysis
02
63% of U.S. local government departments met or exceeded a target service-level agreement (SLA) for time-to-resolve in 2023 service operations benchmarking
03
4.0% median reduction in repeat calls to 311 after implementing workflow automation across large U.S. cities (2023 benchmarking study)
Interpretation
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.
12 · Category
Risk & Compliance1 stats
01
36% of U.S. local government CIO/CTO respondents cited cybersecurity as the top technology priority for the next 12 months in 2024
Interpretation
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.
13 · Category
Workforce & Operations1 stats
01
5.7% of U.S. local government employees worked in information/technology occupations in 2022
Interpretation
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.
Reference
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.
Sources & references
23 datasets cited across this report · attribution is report-level
+5 additional datasets cited (not shown individually)