Granted, the stability gap between private sector and government employment is smaller, but there is still a gap favoring government employment. Also, those folks knew they would be called back; it was just a matter of when. Layoffs in the private sector tend to be permanent - or at least of longer duration. And those folks knew there was a possibility of back pay - non-existent for laid-off employees in the private sector.

For most folks, I doubt that the pros/cons of government employment will change significantly, once the dust settles and they consider the alternatives - especially in areas where the government is the only or major employer.