State and local government employment more than doubled between 1957 and 1977. Changes in public employment could adversely affect nonmetropolitan areas if governments provide an important source of work and earnings opportunities. The government sector: had more employment and earnings than private sectors in more nonmetro than metro counties; was either the first or second most important employer in 40 percent of nonmetro counties; had as much as 25 percent of total employment in less than seven percent of nonmetro counties; employment was more important than government earnings; was more important in counties adjacent to than in counties not adjacent to SMSAs.