The U.S. Bureau of Labor Statistics puts out
quarterly unadjusted data on private sector pay and benefits and state and
local pay and benefits. It has just
released the data for June 2012. The
release contains the following cautionary note:
Comparing
private and public sector data
Compensation
cost levels in state and local government should not be directly compared with
levels in private industry. Differences between these sectors stem from factors
such as variation in work activities and occupational structures. Manufacturing
and sales, for example, make up a large part of private industry work
activities but are rare in state and local government. Professional and
administrative support occupations (including teachers) account for two-thirds
of the state and local government workforce, compared with one-half of private
industry.
One simple partially adjusted
contrast is to look at larger private employers and compare with state and
local (since govt. agencies tend to be larger entities). That contrast omits an adjustment for
occupation as per above. In the latest U.S.
Bureau of Labor Statistics release, hourly pay is about the same when state and
local workers are compared with larger private employers. Pensions (especially defined benefit) and
health care are more prominent in the public sector. Note that defined benefit
pension costs can be understated if employers are underfunding their systems. Legally required payments in the public sector
are lower since some public workers are not under Social Security. Below are data from the latest BLS release. [View in Courier font if the table looks
funny.]
June 2012 Private |Private |State &
Employer Total
|500 or more |Local
Costs/Hour |Employees |
= = = = = = = = = = = = = = = =
= = = = = = = =
Total
Compensation $28.80
$42.39 $41.10
Wages &
Salaries 20.70 27.79
26.70
Retirement
*Defined
Benefit .43 1.00 3.21
*Defined
Contribution .59
1.10 .31
Health 2.21 3.78 4.82
Legally
Required 2.37 3.03 2.53
= = = = = = = = = = = = = = = =
= = = = = = = =
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