| By Matt Cover, Staff Writer (CNSNews.com) – Federal
employees earn 30 to 40 percent more money than their private sector
counterparts on average, a study from the conservative Heritage
Foundation finds. These pay discrepancies persist despite the
recession, unlike the situation in the private sector, where
unemployment is 9.5 percent and wages have steadily declined.
The report comes on the heels of a new unemployment numbers showing
another month of anemic job growth in the midst of President Obama’s
“Recovery Summer” tour, where he is highlighting what he calls signs
of economic recovery.
Those still employed are better off working for the federal
government, the Heritage report found, where they could earn
salaries 22 percent higher than their privately employed peers and
benefits that are far more generous than those in the private
sector.
The report found that in the private sector, wages are closely tied
to productivity.
“Businesses that pay wages below the associated level of
productivity lose quality employees to competitors paying higher
wages,” the report stated. “Businesses that pay workers more than
their productivity lose customers to competitors with lower prices
because of lower costs.”
While the government portends to peg its pay rates to market wages,
in practice federal wages often bear little resemblance to private
sector wages in similar jobs.
The biggest culprit, according to the report, is the federal General
Schedule (GS) pay scale, which determines the salaries of 70 percent
of the federal workforce. Each of the 15 GS pay grades has 15
incremental steps, each earning slightly higher wages with wide
ranges in pay depending on the step. For example, a
college-educated, entry-level GS 7 position earns an average of
$42,209 at step one. By step 10, a GS 7 level employee would earn an
average of $54,875 per year, not counting benefits.
Advancement is achieved through seniority, with some positions
offering so-called career track advancement, where an employee is
promoted annually to the next pay grade until they reach the
maximum. Commonly, this is done over a three year period – from a GS
7 grade to a GS 9 grade, for example. Once the employee reaches the
maximum pay grade for their job, they can then advance through the
steps based on seniority, to a maximum of 10.
Federal employees can be promoted to the next step faster based on
good performance, the report noted, a metric that is not synonymous
with productivity.
On average, federal employees earn 60 percent more than the average
private sector employee – $79,000 vs. $50,000 respectively. Add in
retirement and health care benefits and that gap grows to 85
percent.
Some of that gap is due to the fact that some federal jobs, like IRS
agents and customs officials, are unique to the federal government,
the study notes, so there is no private sector equivalent to compare
them too.
Another factor that drives the raw average up is the fact that the
government employs a higher percentage of college-educated Americans
than the private sector does. Only 59 percent of private-sector
workers have high school diplomas compared to the 89 percent of
federal workers who do. Federal workers, the study noted, are also
an average of five years older than private sector ones.
“A more skilled workforce naturally earns more than a less skilled
one; education and experience increase workers’ productivity,” the
study notes.
When Heritage controlled for similar occupations and employee
characteristics, however, it still found a pay gap of 22 percent
between federal and private sector employees.
“The federal pay system gives the average federal employee hourly
cash earnings 22 percent above the average private worker’s,
controlling for observable skills and characteristics,” reads the
report.
“Including non-cash benefits adds to this disparity. The average
private-sector employer pays $9,882 per employee in annual benefits,
while the federal government pays an average of $32,115 per
employee,” the study found.
The Heritage report also found that government jobs – in addition to
being more lucrative – are almost impossible to lose. Despite a
national unemployment rate that remained at 9.5 percent, federal
employment has grown during the recession.
“Federal employees enjoy job security irrespective of the state of
the economy,” the study documented. “Since the recession began,
federal employment has risen by 240,000 – 12 percent. The
unemployment rate for federal employees has only slightly risen from
2.0 percent to 2.9 percent between 2007 and 2009.”
* * * * *
I was considering the idea of going
on a no-holds-barred nasty rant about useless, brain-dead, zombie,
aggravating government workers, but then I realized that I am not
the only person who has ever had to deal with them. Many of my
readers, (probably 3 or 4 of you) have found yourselves wrapped in
circular logic, "can't get there from here", "you don't have the
right paperwork" quagmires. In several jurisdictions the law used to
state that the victim had justified the homicide, but the liberal
lawyers have excised all of those laws.
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