Metropolitan Transit Authority workers arrive to clean a New York subway station. Photo: Eduardo Munoz Alvarez/Getty Images

State and local governments across the country — which together employ nearly 20 million workers — are bracing for layoffs as they deal with the economic ramifications of the coronavirus.

The big picture: Stay-at-home orders have forced businesses to close and cut jobs, tanking state revenue from sales, personal income taxes and fees. Meanwhile, states have paid steep costs for emergency relief and for increases in social safety net programs like unemployment insurance on top of their usual services like police, mass transit and water.

  • The nonpartisan Center on Budget and Policy Priorities (CBPP) estimates that states could rack up more than $765 billion in budget deficits over the next three years.
  • 88% of local leaders say they're preparing for painful reductions in revenue this year because of the pandemic, according to a National League of Cities survey.
  • Nearly a third of them anticipate furloughing employees, while a quarter expects layoffs.

Why it matters: Nearly two-thirds of state spending goes to education, health care and transportation, per the CBPP.

  • Localities and states shed 3% of their workforce as a result of the 2008 financial crisis, according to census data. Half of them were teachers.
  • Those public sector jobs returned slowly and still haven't rebounded to the levels they were before the recession.
  • "[W]e should expect, among other effects, to see fewer teachers in classrooms, higher tuition at public colleges and universities, stingier coverage for Medicaid enrollees and forgone infrastructure improvements," wrote former Obama administration economic adviser Matthew Fiedler in a New York Times op-ed.

The state of play: Dayton, Ohio, has already furloughed nearly 25% of its workforce, and the city is planning to cut more.

Go deeper: States face economic death spiral from coronavirus

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The 53 countries supporting China's crackdown on Hong Kong

Saudi Crown Prince Mohammed bin Salman with Chinese President Xi Jinping. Photo: Rolex/Pool/Getty Images

China's foreign ministry and state media have declared victory after 53 countries joined a statement at the UN Human Rights Council supporting Beijing's new national security law for Hong Kong — compared to 27 who criticized the law.

The big picture: The list of 53 countries was not initially published along with the statement, but has been obtained by Axios. It is made up primarily of autocratic states, including North Korea, Saudi Arabia, Syria and Zimbabwe.

CO2 emissions may have peaked, but that's not enough

Reproduced from DNV GL; Chart: Axios Visuals

More analysts are making the case that COVID-19 could be an inflection point for oil use and carbon emissions, but it's hardly one that puts the world on a sustainable ecological path.

Driving the news: The risk advisory firm DNV GL, citing the pandemic's long-term effects on energy consumption, projects in a new analysis that global CO2 emissions "most likely" peaked in 2019.

U.S. economy added 4.8 million jobs in June

Data: Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. economy added 4.8 million jobs last month, while the unemployment rate dropped to 11.1% from 13.3% in May, according to government data released Thursday.

The state of play: While the labor market showed more signs of recovery when the government’s survey period ended in early June, the lag means that more recent developments, like the surge in coronavirus cases and resultant closures in some states, aren't captured in this data.