State Employees Really Paid More
State Employees Really Paid More – In a recent article, USA Today reported on the national trend of public employees getting higher salaries and benefits than private workers. It seems as though the influx of public union protests from last year (2011) may not have been reflective of the status of the workers.
The report shows that state and local government workers make similar salaries to their private sector counterparts. The big difference, however, is how generous the public worker’s benefits are.
State Employees Really Paid More
The big disparity between public and private workers began to become more evident in 2000. This is an excerpt from the USA Today report:
“The analysis of government data found that public employees’ compensation has grown faster than the earnings of private workers since 2000. Primary cause: the rising value of benefits.
Wisconsin is typical. State, city and school district workers earned an average of $50,774 in wages and benefits in 2009, about $1,800 more than in the private sector. The state ranked 33rd in public employee compensation among the states and Washington, D.C. It had ranked 20th in 2000.”
It’s amazing just how valuable benefits really are. As Americans I think it’s fair to say that good health insurance provided by your employer is worth its weight in gold. And some people have ‘great’ health insurance! Can you imagine? I can’t and that’s kind of sad.
Anyway, if you look at the data from the USA Today report (organized in the chart below) you can see the disparity between public and private workers. Essentially you’re looking at the public workers compensation (salary + value of benefits) and the difference in what the average of that particular state’s private workers receive. If the difference has a + they are making more and a – means they are making less.
| Rank | State | Compensation | Difference |
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| 1 | District of Columbia | $82,607 | +$457 |
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| 2 | Connecticut | $77,697 | +$7,687 |
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| 3 | New Jersey | $72,007 | +$6,681 |
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| 4 | California | $71,385 | +$7,977 |
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| 5 | New York | $71,282 | +$1,699 |
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| 6 | Rhode Island | $69,284 | +$17,603 |
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| 7 | Nevada | $68,785 | +$17,815 |
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| 8 | Maryland | $65,947 | +$6,931 |
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| 9 | Massachusetts | $62,562 | —$4,688 |
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| 10 | Alaska | $60,882 | +$2,764 |
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| 11 | Illinois | $60,274 | +$485 |
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| 12 | Delaware | $60,077 | +$2,911 |
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| 13 | Hawaii | $59,595 | +$12,243 |
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| 14 | Washington | $59,288 | +$532 |
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| 15 | Michigan | $58,801 | +$6,436 |
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| 16 | Florida | $58,749 | +$9,099 |
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| 17 | Arizona | $56,321 | +$4,310 |
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| 18 | Minnesota | $55,826 | +$1,259 |
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| 19 | Virginia | $55,705 | —$2,328 |
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| 20 | Oregon | $55,682 | +$5,607 |
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| 21 | Pennsylvania | $55,137 | +$1,567 |
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| 22 | Colorado | $54,184 | —$3,391 |
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| 23 | Wyoming | $53,460 | +$3,116 |
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| 24 | South Carolina | $52,591 | +$7,590 |
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| 25 | Ohio | $52,473 | +$2,392 |
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| 26 | Louisiana | $52,412 | +$2,473 |
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| 27 | New Hampshire | $52,181 | —$1,876 |
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| 28 | Vermont | $51,503 | +$5,811 |
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| 29 | New Mexico | $51,428 | +$5,715 |
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| 30 | Texas | $51,310 | —$3,580 |
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| 31 | Alabama | $50,999 | +$5,001 |
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| 32 | North Carolina | $50,902 | +$1,857 |
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| 33 | Wisconsin | $50,774 | +$1,802 |
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| 34 | Iowa | $50,394 | +$6,178 |
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| 35 | Utah | $50,149 | +$2,611 |
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| 36 | Maine | $49,850 | +$4,912 |
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| 37 | Georgia | $49,600 | —$3,875 |
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| 38 | Indiana | $49,157 | +$1,183 |
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| 39 | Missouri | $49,092 | —$1,075 |
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| 40 | Nebraska | $48,953 | +$3,130 |
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| 41 | Kentucky | $48,046 | +$2,313 |
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| 42 | Arkansas | $48,033 | +$4,196 |
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| 43 | West Virginia | $47,899 | +$3,655 |
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| 44 | Tennessee | $47,891 | —$756 |
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| 45 | Montana | $47,596 | +$7,396 |
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| 46 | Oklahoma | $47,258 | +$1,667 |
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| 47 | Mississippi | $46,375 | +$4,713 |
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| 48 | Idaho | $45,280 | +$2,855 |
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| 49 | Kansas | $44,803 | —$3,229 |
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| 50 | North Dakota | $43,619 | +$389 |
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| 51 | South Dakota | $41,684 | +$1,909 |
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| Total United States | $57,775 | +$2,511 | |
State Employees Really Paid More
Public workers, as you can see, do much better than private workers. It’s interesting to me to see how benefits have risen so much in value since 2000– but I think it makes sense. It’ll be interesting to see whether or not this trend continues in the next ten years.
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State Employees Really Paid More
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29 Responses to “State Employees Really Paid More”
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sally
13. Feb, 2012
The benefits may come to more on paper because the cost for them are higher…aka insurance companies in the private sector! charge more. But since i get the benefits that I have to pay for…oh yes I pay for them.
I pay insurance premiums and my own money goes into my retirement.
I also get about 2/3 the pay than someon inthe private sector that does the same job as I do.
a computer programmer may earn 50,0000.00 to 60,000.00 to start and I only get paid 32,000.00 and we both have to pay for benefits the only thing that I get that the private sector doesn’t is leave time. Somehow in my book that doesn’t add up!
signed a state employee
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Forest
21. Feb, 2012
Hey Sally, thanks for the input from an actual State Employee. I think State Employees should get good benefits personally.
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Dennis
22. Feb, 2012
The reason the disparity in compensation packages has reversed is that the private sector has CUT BACK on all forms of benefits. It’s not that the public sector has surged ahead it’s that the horribly run corpserations (sic) have eviscerated non-executive recompense.
The MSM has once again vilified the people that keep this nation in one piece.
Let’s visit the golden parachutes and other forms of biased payments for the economy killing elites like R-money. I’m certain that it would be more of an exceptional portrayal of income disparity.
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Forest
22. Feb, 2012
Thanks for the interesting comment Dennis. I think State Employees deserve a great employee package and don’t understand why that is ever seen as a bad thing. Like you said it isn’t necc that great anyway!
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Don
22. Feb, 2012
Just as I thought. This is due to the state unions and the Democrat party. Time to decertify the unions and change the retirement funds to 401K type investments as the private employee’s have been forced to do the last 20 years. Also state employee’s need to pay 200 to $300 per month for health insurance as the private employee’s do. Get some guts and our taxes will go down, don’t I will will go bankrupt and the state employee’s will get nothing.
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Forest
22. Feb, 2012
Hey Don, what is wrong with gov sector jobs being competitive? Would it really save enough money to fix the broken economy?
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kay smith
25. Feb, 2012
I agree with you, about Gov getting some guts!
It’s not just the state employees it’s ALL government
for the past 4 years. Listening to them complain about the small wage increases, when there are so many with out a job, and those that have a job have NO increases, in stead some having to take less wages to keep companies a float, and keep a job, for what to hear why they just got a cost of living increase and nothing more.
It’s just frustrating to me to many with NO BENEFITS, NO paid vacation, and no employer adding to their 401k. Reviewing the average wages one would think that a college educated person should be making at least that. But that is not the case anymore and no improvement in site.
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c
25. Feb, 2012
I am a state employee making about $7.00 per hour less than someone in the private sector makes doing the same type of work. I pay over $230.00 per month for health insurance and my retirement will be forced into a 401K after 2010 ends.
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losconinhum
25. Feb, 2012
It is no secret that public workers do not work as hard as private workers. There is a lot deadhead public workers playing the system and the states are feeling the pinch. Up until now public workers were not affected by a recession. Public workers that are slackers need to be culled out , along with sleazy unions
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K
25. Feb, 2012
This study doesn’t compare the same types of jobs, it is just an average of all employees. On Average most state employee jobs require more education than private sector, therefore more higher paying jobs will bring up the average. When you compare jobs of same skill level, state employees generally make 10% or less than equal private sector. Although for my state of GA, which is one of the exceptions, shows that state employees have a significant lower salary than private sector !
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Marney
25. Feb, 2012
As a State employee I have seen my insurance cost, (yes I pay them) continue to go up every year for the past four. Been forced into unpaid days with higher work loads to balance the budget and not gotten a raise in 4 years, so I have been at my starting pay for an entire four yeas. Having your States financial woes balanced on your backand listinging to everyone complain about how good you got it. What I stay for is the fact that I do enjoy my job, and given where I live and the unemployment rate I am lucky to have the one that I do!
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Tony Vega
25. Feb, 2012
Seems like the entry level employees get paid more than they would ever make in private sector while the higher level jobs are paid less than private sector. I would say the benefits aren’t necessarily better than private sector.
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Former Fed
25. Feb, 2012
Having worked in both the Fed Gov and Private Sector I can say this. If you want security in your job…faith that it will take an act of treason or Congress/House/Senat to lose that job…then by all means…become a Public Employee. A lot of States are finding that they cant pay the Pensions they promised which were excessive in comparison to 401KS. If you want to see out of control State Employee Policies….look at DC! That is one of the most corrupt Governments in the Nation! But as long as the employee resigns before being convicted…they get their pension WHILE IN JAIL! Now try getting ANY of that in the “At Will” work environment of the Private sector…where you can be “let go” at ANY tim for ANY reason. Where you pay for your own Retirement and you pay a portion or all your own Benefits. Add to that … the private sector PRODUCES product and makes a profit. Government has does not make a profit. Government only Spends every $$$ it gets… it never Saves. So Government employment in itself is a HUGE benefit. Lets face it…most Government employees couldn’t hack it in the REAL world….that is why they stay in Government. They should be happy the get as much as they do.
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Emily
27. Feb, 2012
Hi “Former Fed”–
I really appreciate your input, especially as you’ve had experience in both sectors. I think you can shine a light on the issue that most people can’t. Thanks so much for your comment!
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Lee
25. Feb, 2012
I’m a state employee who works in one that is listed as making LESS than the private sector; currently paying slightly under 400/month for a health insurance plan with coverage less than that in most private sectors and is slated to rise about 5% in the fall; was very fortunate and pleased to receive a long awaited (many years) pay raise of 1.6% last fall; hoping legistation passes for the proposed 2.5% pay raise this fall –which if you do the math both raises will not cover the rise of insurance premiums. Much like the private sector our workforce has been reduced to the bare bones minimum w/possiblity of more layoffs. My co-workers and I work very long hours with diligence to process the vast volume of unemployment claims coming in on a daily basis…and we do it with pride, sincerity, and compassion; EVEN when we are assisting those who –during stable economic times — think of us as “lazy, incompetent, overpaid, got-it-made” state employees (we hear that often); but are even more challenging to deal with when you add their understandable stress of being jobless. I would venture to say that the one thing that state and private sector employees have in common these days is….many of us have thankless jobs; but we still do them with pride.
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Emily
27. Feb, 2012
Hi Lee,
I think your comment is eloquently put. It’s true– this isn’t a great time for anyone these days, both for employed and unemployed people. Thanks so much for sharing your story!
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CK
25. Feb, 2012
The above analysis is probably statistically in ERROR. You cannot just add up all the benefits of the states and divide by 50 and say anything. The analysis does not seem to take into account the actual NUMBER of employees in each state. Obviously there are probably many more government employees in some states than in others and unless this is taken into account the analysis is worthless. Also it is not exactly clear how they come up with these numbers at all so I don’t put much credence in this analysis.
Someone once said; There are LIES, Damn LIES, and Statistics.
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Emily
27. Feb, 2012
Hi CK, it’s very possible that there is an error in the data. I was reporting on an analysis report done by USA TODAY. Many people seem to disagree with the report which makes me wonder whether or not it was conducted properly. Thanks for your comment!
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stephanie
25. Feb, 2012
My husband has been a state employee for almost 8 years. As a salaried employee his hours are subject to how ever long it takes him to get his work done (as an attorney that is almost never,) however since our state is struggling with the biggest state budget shortfall (Nevada,) he has to take furlough days every month. I wonder if the numbers above reflect what his salary is on paper? or what he actually takes home after furlogh? He has been taking furlough for almost three years. I know Nevada is not the only state with mandatory unpaid time off. It would be interesting to see how those numbers would come out now.
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Emily
27. Feb, 2012
Hi Stephanie, I’ve never heard of furlough before that’s really interesting. Unfortunately I don’t know enough to answer your question, but I’m sure if it became national it would definitely have affects. Thanks for your comment!
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fred
25. Feb, 2012
I think you could go into any government building at
any level, fire half the people, put the rest to work, and
you wouldn’t see an iota of difference.
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Emily
27. Feb, 2012
Hey Fred, I have family members who work for the government who probably wouldn’t agree, but I respect your opinion. Thanks for your comment.
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sandy
25. Feb, 2012
I am a state employee for Otegon. When I went to work for the state I left a job making $55,000 in the private sector, plus bonuses. My state position pays me $30,000 If you can do the math that is about 35% LESS than what I was making. The pay off is my retirement 10 years from now. Dont think all state employees are swimming n money and dont have to work for it. I put in so much free time because we cant do overtime but there isnt enough time in the day to deal with all the people needing help in this state, so I stay and work several hours at no pay. My only pay off is when I retire I will get about 50% of my income. So the way I see it I am investing in my future now instead of later. I took the cut in one place just to better another.
If you dont know what you are talking about you should reseach before you speak up. Most state workers in Oregon have not had a raise in 5 years and we take 14 days with no pay, where is the getting rich off that??? your tax dollars are spent well in my department we work very hard and all I ever hear is how we do nothing but get paid alot of money when that just isnt so.
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Emily
27. Feb, 2012
Hi Sandy, thanks for your comment. I agree that state workers aren’t swimming in money. The report that was conducted was by USA Today about the disparity between the public and private sector in 50 states since 2000. I was just reporting on the article and am sure that it isn’t necessarily the reality for many people. Thanks again!
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Tom
25. Feb, 2012
Your article is crap, I know many state and federal employees and they make way less than private industry. My best friend works for the State of Tennessee and makes 20,000 less than those in the private sector in similar jobs. I have another friend who works for the State of New Mexico and makes 30% less than those in private industry do.
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Emily
27. Feb, 2012
I’m sure that it depends a lot on where you live and case to case. The data I provided was from a nationwide study, although I think a lot of people disagree with the results. Thanks for your comment, Tom.
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Nancy Gamroth
26. Feb, 2012
How many are members of unions? I know in Texas they are not…what about other states & DC?
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David
26. Feb, 2012
The pay higher pay and health care benefits that public sector employees make doesn’t tell don’t the entire story. My brother is a public school teacher in Illinois and will be retiring in 2 years. His pay is around $80,000 per year, and pension will be somewhere around $42,000-$45,000 per year. I am in the private sector and my 401K has tanked in the last few years. I will get around $17,000 per year from Social security, and put in more to SS than he did his pension. So those of us in the private sector are supposed to guarantee the benefits of those in the public sector? NO wonder Illinois is broke.
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Emily
27. Feb, 2012
Wow, that’s a huge disparity between the two sectors. Thanks for your comment David!
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