Federal Workers Are Underpaid Compared To Their Private Sector Counterparts

[Listening]

The answer depends on who you ask. Each side of this debate trots out statistics showing that public sector workers get paid more or less than others, depending on who did the survey and the methodology. Finding accurate, unbiased data is not easy. That said, there are some surprises in this fight. Total compensation for government workers has actually risen more slowly in the two states seeing the biggest fight: Ohio and Wisconsin. By some measures, private workers may have done better the last decade — but few have those juicy pensions.

Public V. Private Sector: Who's Compensated More? : NPR

 

[Listening]

In an economy where private-sector workers have seen layoffs, furloughs and cuts to their pay and benefits, Colorado state employees' jobs have remained relatively stable and their benefits — especially their pensions — have stayed comparatively generous.

That's not to say state workers haven't taken hits in the recession. They have not gotten pay raises for the past three years, they were furloughed for eight days in fiscal year 2009-10 and the state has made them pay a greater share of their pension costs. And the state workforce has been diminished in some areas while workload has increased.

Pay and benefits of government workers are being scrutinized nationally amid the battle in Wisconsin and elsewhere over public workers' benefits.

"I think the broader story is that government workers have fared much better than their counterparts in the private sector," said House Speaker Frank McNulty, R-Highlands Ranch. "When you look at the sacrifices that the folks in the private sector have made — Coloradans that have had pay cuts, business owners that have gone without salaries to meet payroll — that same type of sacrifice has not been seen among government workers."

According to the U.S. Bureau of Labor Statistics, the private sector's cost per hour worked has climbed 5 percent compared with 6.8 percent for the public sector since the fourth quarter of 2007.

But looking back to 2004, data show the public sector kept a lid on wages and benefits more effectively than the private sector. The cost per hour worked in the private sector rose 19.1 percent from 2004 through 2010, while that measure for the public sector rose just 13.6 percent.

State workers say they are being scapegoated as governments deal with the fallout of the worst economic situation since the Great Depression​.



Read more: Public vs. private jobs: Stacking up pay and benefits - The Denver Post Public vs. private jobs: Stacking up pay and benefits - The Denver Post
Read The Denver Post's Terms of Use of its content: Terms of Use - The Denver Post

 

[Conservative]

What is the "source" of your chart? The OP references the Bureau of Labor Statistics and the Washington Post.

from the WP article...

The comparison of federal versus non-federal pay long has been a controversial topic, with other studies, using different sets of data and different methods, producing widely varying figures. The conservative Heritage Foundation, for example, concluded last year that federal employees are overpaid by 22 percent on average.

The methods BLS uses have been evolving, in part because funding is being cut off for a salary survey that it traditionally used in the federal pay comparison. BLS presented an alternative set of figures based on a different set of data that showed the pay gap to be still larger. However, the council voted to continue using numbers from the old method while it studies the reasons for the difference. In the meantime, it recommended restoring funding for the salary survey.

Once they all use the same data, then we'll see who is ******* with the numbers to get the results they want.

 

[Conservative]

according to the BEA (US Bureau of Economic Analysis)...
Overpaid Federal Workers | Downsizing the Federal Government

In 2009, federal civilian workers had an average wage of $81,258, according to data from the U.S. Bureau of Economic Analysis.5 By comparison, the average wage of the nation's 101 million private-sector workers was $50,462.

When benefits such as health care and pensions are included, the federal compensation advantage over private workers is even larger, according to the BEA data. In 2009, federal worker compensation averaged $123,049, or double the private-sector average of $61,051. Figure 2 shows that average federal compensation has grown rapidly over the last decade.

The government's Federal Salary Council releases an annual memo reporting on the size of the supposed pay gap, which in 2009 was 26 percent.11 The gap is supposed to be determined based on job-to-job comparisons, but the results rest on calculations that are non-transparent and subject to a large amount of statistical modeling.

One reason why the official pay gap results are suspicious is that they don't square with Bureau of Economic Analysis data on overall pay trends. The BEA data show that average federal wages have grown faster than average private wages for many years, yet the official pay gap has remained very large. The official pay gap was 22 percent in 2001 and 26 percent in 2009, thus supposedly indicating that federal workers became a bit worse off relative to private-sector workers during that period.12 Yet the BEA data show that average federal salaries rose 58 percent between 2000 and 2009, which was much faster than the 30 percent increase in the private sector. Since the BEA data are authoritative, there must be something wrong with the official pay gap methodology.

 

[Listening]

according to the BEA (US Bureau of Economic Analysis)...
Overpaid Federal Workers | Downsizing the Federal Government

In 2009, federal civilian workers had an average wage of $81,258, according to data from the U.S. Bureau of Economic Analysis.5 By comparison, the average wage of the nation's 101 million private-sector workers was $50,462.

When benefits such as health care and pensions are included, the federal compensation advantage over private workers is even larger, according to the BEA data. In 2009, federal worker compensation averaged $123,049, or double the private-sector average of $61,051. Figure 2 shows that average federal compensation has grown rapidly over the last decade.

The government's Federal Salary Council releases an annual memo reporting on the size of the supposed pay gap, which in 2009 was 26 percent.11 The gap is supposed to be determined based on job-to-job comparisons, but the results rest on calculations that are non-transparent and subject to a large amount of statistical modeling.

One reason why the official pay gap results are suspicious is that they don't square with Bureau of Economic Analysis data on overall pay trends. The BEA data show that average federal wages have grown faster than average private wages for many years, yet the official pay gap has remained very large. The official pay gap was 22 percent in 2001 and 26 percent in 2009, thus supposedly indicating that federal workers became a bit worse off relative to private-sector workers during that period.12 Yet the BEA data show that average federal salaries rose 58 percent between 2000 and 2009, which was much faster than the 30 percent increase in the private sector. Since the BEA data are authoritative, there must be something wrong with the official pay gap methodology.

Lakhota has gone missing.

To many facts for his liking.

Good job !

 

[Conservative]

according to the BEA (US Bureau of Economic Analysis)...
Overpaid Federal Workers | Downsizing the Federal Government

In 2009, federal civilian workers had an average wage of $81,258, according to data from the U.S. Bureau of Economic Analysis.5 By comparison, the average wage of the nation's 101 million private-sector workers was $50,462.

One reason why the official pay gap results are suspicious is that they don't square with Bureau of Economic Analysis data on overall pay trends. The BEA data show that average federal wages have grown faster than average private wages for many years, yet the official pay gap has remained very large. The official pay gap was 22 percent in 2001 and 26 percent in 2009, thus supposedly indicating that federal workers became a bit worse off relative to private-sector workers during that period.12 Yet the BEA data show that average federal salaries rose 58 percent between 2000 and 2009, which was much faster than the 30 percent increase in the private sector. Since the BEA data are authoritative, there must be something wrong with the official pay gap methodology.

Lakhota has gone missing.

To many facts for his liking.

Good job !

He tends to do that.

My point is that if different government agencies can't agree on the numbers. there's really no way to know who si 'right', unless they all use the same data and same methodology.

 

[Listening]

according to the BEA (US Bureau of Economic Analysis)...
Overpaid Federal Workers | Downsizing the Federal Government

Lakhota has gone missing.

To many facts for his liking.

Good job !

He tends to do that.

My point is that if different government agencies can't agree on the numbers. there's really no way to know who si 'right', unless they all use the same data and same methodology.

And I would agree with you. And there are different markets which would not always look the same.

 

[Listening]

Federal Workers Are Underpaid Compared To Their Private Sector Counterparts, Despite GOP’s Assertions

By Travis Waldron

To hear Republican presidential primary candidates tell it, the federal workforce under President Obama has experienced ballooning job growth and huge wage increases. Such claims are a staple of Rep. Michele Bachmann’s (R-MN) stump speeches, and for months, former Massachusetts Gov. Mitt Romney (R) has promised to bring the rest of the workers’ pay into line with comparable employees in the private sector.

Speaking at the Koch brothers-backed Americans for Prosperity annual summit Friday, Romney repeated this pledge, saying the pay gap between public and private workers “must be corrected.” “Public servants shouldn’t get a better deal than the taxpayers they work for,” Romney added.

But if Romney truly wants to match the pay of public employees to that of private workers, he would have to give the federal workers a raise, according to a new report from the Bureau of Labor Statistics. And such a raise wouldn’t be a small one — according to the report, federal workers are underpaid compared to their private sector counterparts by an average of 26.3 percent, and that gap is widening, the Washington Post reports:

More: Federal Workers Are Underpaid Compared To Their Private Sector Counterparts, Despite GOP's Assertions | ThinkProgress

Think Progress !!!

How about just "Think" !

 

[oreo]

Federal Workers Are Underpaid Compared To Their Private Sector Counterparts, Despite GOP’s Assertions

By Travis Waldron

To hear Republican presidential primary candidates tell it, the federal workforce under President Obama has experienced ballooning job growth and huge wage increases. Such claims are a staple of Rep. Michele Bachmann’s (R-MN) stump speeches, and for months, former Massachusetts Gov. Mitt Romney (R) has promised to bring the rest of the workers’ pay into line with comparable employees in the private sector.

Speaking at the Koch brothers-backed Americans for Prosperity annual summit Friday, Romney repeated this pledge, saying the pay gap between public and private workers “must be corrected.” “Public servants shouldn’t get a better deal than the taxpayers they work for,” Romney added.

But if Romney truly wants to match the pay of public employees to that of private workers, he would have to give the federal workers a raise, according to a new report from the Bureau of Labor Statistics. And such a raise wouldn’t be a small one — according to the report, federal workers are underpaid compared to their private sector counterparts by an average of 26.3 percent, and that gap is widening, the Washington Post reports:

More: Federal Workers Are Underpaid Compared To Their Private Sector Counterparts, Despite GOP's Assertions | ThinkProgress

Yeah--RIGHT--- Another one of your left wing sites I see--well how about a real report with real statistics?

Several analyses of average wages and benefits in the public and private sectors reveal that state and local government workers earn more than private sector workers. According to the most recent Employer Costs for Employee Compensation survey from the U.S. Bureau of Labor Statistics, as of December 2009, state and local government employees earned total compensation of $39.60 an hour, compared to $27.42 an hour for private industry workers-a difference of over 44 percent. This includes 35 percent higher wages and nearly 69 percent greater benefits.

Data from the U.S. Census Bureau similarly show that in 2007 the average annual salary of a California state government employee was $53,958, nearly 32 percent greater than the average private sector worker ($40,991). In addition, as noted by reporter and Calpensions.com blogger Ed Mendel, in 2006 the state conducted a comparison of state and private sector compensation for the first time in two decades. While the Department of Personnel Administration survey did not include all job classifications, the analysis determined a number of benchmark job classifications and found that state compensation was greater than private sector compensation for clerical jobs, accountants, custodians, electricians, stationary engineers, and analysts, but lagged in medical occupations.

Moreover, data from the Bureau of Economic Analysis illustrate that average state and local government compensation has been increasing at a faster rate than average private sector compensation over the past 30 years.

Reason Foundation - Comparing Private Sector and Government Worker Salaries

The below chart is the amount of government jobs that have increased compared to growth in private sector jobs.

 

[Againsheila]

What is the "source" of your chart? The OP references the Bureau of Labor Statistics and the Washington Post.

first POGO has its own issues. so its dueling sources.


I AM a Federal employee, trust me, we're fat.


You do know thsat the BLS like their Inflation stats do not encompass a great del that heritage and others have factored in, like retiree health coverage, job security, defined pension plans vs. 401K etc…..when you combine salaries, fringe benefits and job security, trust me we do very well, better than I did at my last corporate job, which very much surprised me too.

What level are you? Because believe me, above GS 9 you make great money, below GS 9 you make crappy money. The fed gov is very top heavy.

When I worked for the gov, I was making slightly more than $6.00 an hour and over $100 was coming out each month to pay for my health insurance. They ended the federal pensions and forced us to pay into medicaid and social security....Unless you started before the 1980's, you do not have those great pension benefits....*unless of course, the government changed things again since I left.

 

[Charles_Main]

Federal Workers Are Underpaid Compared To Their Private Sector Counterparts, Despite GOP’s Assertions

By Travis Waldron

To hear Republican presidential primary candidates tell it, the federal workforce under President Obama has experienced ballooning job growth and huge wage increases. Such claims are a staple of Rep. Michele Bachmann’s (R-MN) stump speeches, and for months, former Massachusetts Gov. Mitt Romney (R) has promised to bring the rest of the workers’ pay into line with comparable employees in the private sector.

Speaking at the Koch brothers-backed Americans for Prosperity annual summit Friday, Romney repeated this pledge, saying the pay gap between public and private workers “must be corrected.” “Public servants shouldn’t get a better deal than the taxpayers they work for,” Romney added.

But if Romney truly wants to match the pay of public employees to that of private workers, he would have to give the federal workers a raise, according to a new report from the Bureau of Labor Statistics. And such a raise wouldn’t be a small one — according to the report, federal workers are underpaid compared to their private sector counterparts by an average of 26.3 percent, and that gap is widening, the Washington Post reports:

More: Federal Workers Are Underpaid Compared To Their Private Sector Counterparts, Despite GOP's Assertions | ThinkProgress

Those figures completely Ignore Benefits, and Retirement contributions. Which is often more than Half someones total Income. Federal Employees make more than their Civilian Peers when Pay and Benefits are Added together.

 

[MeBelle]

What wonderful benefits do you imagine Federal workers get? They pay over $2 k per year for health insurance, pay the same Social Security and Medicare and have a 401k type retirement plan

How do you reach 50%. ???

Personal experience.

My response stated MANY. Your $2k per year for HI are pre-tax dollars. SS and Medicare were not/are not part of SALARY, which was what the OP had linked too.
Also, there are many layers of Fed employees. Not each layer has a defined benefit plan.
Just take a look at congressional pay/benefits and see what you find.
MANY are given a nice retirement salary, for few years on the job, at the expense of the taxpayer.

All Federal Employees receive the same benefits package and that includes Congress. No one receives a nice retirement package for a few years on the job. You get one percent of your salary for every year worked starting at age 62 for Congressmen.

A Senator who served two terms would get 12% of $172,000 or $21,000 a year once he reached the age of 62

Have you googled the benefits a President gets after one term?
CIA, FBI, ICE, HLS?
I am not referring to the worker bees.

But back to federal salaries.
Here is a list of WH staff salaries. It does not include benefits.
2011 Annual Report to Congress on White House Staff | The White House
The 'Assistant to the President (fill in the blanks)' are commonly known as Czars.

 

[Chris]

A large number of federal workers are military.

So you guys want to cut military salaries and pensions.

 

[Chris]

A Senator only makes 172K?

That's peanuts.

 

[editec]

The best starting salary for a young unskilled worker in the USA is currently the MILITARY.

So FEDERAL workers really might be better paid (now) than their private Sector counterparts.

I still insist that at the upper levels of skill sets, FEDERAL workers aren't as well paid, but certainly on the lower levels of skill sets, FEDERAL workers are probably MUCH better paid than folks with similar jobs in the private sector.

 

[Conservative]

A large number of federal workers are military.

So you guys want to cut military salaries and pensions.

I do not believe the Op deals in military workers, so your point is stupid.

 

[Conservative]

A Senator only makes 172K?

That's peanuts.

I do not believe the OP is talking about Senators or Congressmen, so your point is still stupid.

 

[Toro]

http://www.usmessageboard.com/economy/184091-government-employment-has-declined-by-1-million.html

 

[Toro]

A Senator only makes 172K?

That's peanuts.

My guess - and I'm just guessing - is that $172k is among the highest salaries for legislators in the world.

 

[Harry Dresden]

A large number of federal workers are military.

So you guys want to cut military salaries and pensions.

why would you care if they do?.....you despise the Military......you are all for gutting them....