Skip to comments.Public Sector Pay Overshadows the Private Sector
Posted on 08/03/2011 11:08:21 AM PDT by MichCapCon
Average annual pay for Michigan public-sector workers has grown substantially over the last decade in relation to private-sector pay. In 2001, public and private wages were comparable, with the average public-sector worker taking home about $1,400 per year less than his private-sector counterpart. However, in 2005, average public-sector pay overtook the private sector, and the gap in pay has since expanded to over $5,000 per year in favor of government workers. Over this time, wages for workers at all levels of government local, state and federal have grown more quickly than private-sector wages. This difference in pay does not include benefits like retirement plans and health insurance, which are also typically more generous for public-sector employees in Michigan.
The 2009 data best shows the clear disconnect between public- and private-sector pay. After the recession hit in 2008, average private pay actually declined by $1,000 per year, but public payrolls kept rising despite the economic downturn. Federal, state and local government average salaries all posted four-figure increases from 2008 to 2009.
Michigans leaders must ensure that all state employees are compensated fairly and in a manner that the states taxpayers can afford. Michigans private sector, already weakened by the recession, is being forced to bear the burden of a large government payroll. Trimming this payroll to better match the private sector would greatly ease the pressure on Michigans budget. With over half a million state and local government workers employed in Michigan, even modest changes in overall compensation could save the state billions.
While these high wages for government workers may be justified, they certainly must be tightly watched to ensure that Michigan taxpayers money is being well spent. If Michiganders want their economy to become competitive and vibrant, they must ensure all employees public and private receive competitive wages.
Since there are no private sector jobs, can it be that ALL states are paying for Michigan's job numbers via 0bamanomics?
We will all be long gone before those big government types ever get it and let freedom truly ring!
Michigan? Its a Obama America.
The leeches need to learn the private sector made America starting with the farmers.
It’s happening in at least many of the states, and it’s going to get far worse. It was also apparently one of the goals of the globalism in business and anti-family practices (approval of immoralities) of the Californian Ideology (libertarianism or whatever).
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