Government Workers Cost 45% More Than Private Sector

The United States Bureau of Labor Statistics (BLS) announced on March 12th that the total cost of employing a state or local government worker is 45% more than an equivalent worker in the private sector.  For the month of December 2013, employers in private industry spent an average of $29.63 per employee hour worked. But the equivalent cost for a government worker averaged $42.89 per hour. Not only does a government employee average 33% higher pay than in the private sector, their pension and retirement benefit cost is now an incredible 254% higher also. Given that compensation formulas for federal, state and local government are comparable, it should not be a surprise that this year spending by the U.S. government will exceed revenue by an all-time high of $744.2 billion and our gross national debt is a stunning $18.5 trillion. The BLS reported that private employers spent $20.76 on average for wages and salaries, plus $8.87 for benefits per hour worked.  State and...(Read Full Post)