Government jobs: Bloated pay, benefits cost us all
Feel like you’re not paid enough? Worry about losing your job? Wish you had better benefits? Ever think about quitting?
If you answered “yes” to these questions, one thing is certain: You don’t work for Uncle Sam.
That’s because federal workers are much better off than private-sector workers in all the major markers of job satisfaction — salary, job security, benefits and job desirability. And it’s costing taxpayers a bundle.
Start with the money. The average federal employee earns an annual salary almost 60% higher than the average private-sector employee — $79,000 vs. $50,000. Federal employees do have more education (on average) than private-sector workers. Their unions argue that this justifies their higher pay. But it doesn’t. Even after controlling for education and experience, federal employees get paid significantly better — 22% more per hour, on average — than private-sector workers.
Overall, though, government workers earn well above what their private-sector counterparts make, even before you consider benefits.
Once you add up benefits, the gap in total compensation rises even higher — 30% to 40% above comparable private-sector workers.
Federal civil servants enjoy another perk: near-absolute job security. Private businesses cut hiring and increase layoffs when sales drops. From 2007 through 2009, the adult unemployment rate in the private sector more than doubled, from 4.2% to 9.4%. Not in government. The percentage of federal employees who lost jobs barely budged, going from 2.0% to 2.9%.
This is largely because of civil service rules. It’s virtually impossible to fire federal employees for bad performance once they’ve passed a one-year probationary period.
