That’s because when the entire country is hurting and the private sector continues to lose jobs, bureaucrats are being hired.
The following chart makes that case. Since the beginning of the recession (roughly January 2008), some 7.9 million jobs were lost in the private sector while 590,000 jobs were gained in the public one. And since the passage of the stimulus bill (February 2009), over 2.6 million private jobs were lost, but the government workforce grew by 400,000.
Plus, as you know, according to the latest numbers from Bureau of Economic Analysis, the average federal civilian worker now earns double what private-sector workers earn when factoring in wages and benefits ($119,982 vs. $59,909). And the gap is increasing. According to Chris Edwards of the Cato Institute, in 2000, the average federal worker earned 66 percent more in total compensation than the average private-sector worker. By 2008, that ratio had risen to 100 percent. That’s serious money.
Peter Orszag, the soon to be leaving OMB director, has explained the differences in pay by saying that public employees have more diplomas (probably implying that they are smarter) than private employees:
But the truth is that a comparison of federal and private-sector pay, even by occupation, is misleading because the employees hired by the federal government often have higher levels of education than their counterparts in the private sector — even within the same occupations. When you factor in the education and experience of the federal workforce, there is no statistically significant difference in average pay levels.
Edwards, however, shows this is nonsense. He writes:
Some people argue that the federal government has a unique high-end workforce, which deserves to be paid handsomely. But let’s consider some ordinary and mundane offices in the U.S. Department of Agriculture. In 2010, the USDA’s Office of Communications employed 77 people and paid $9 million in wages and benefits. That works out to $117,000 each for these public relations workers, which is close to the overall federal compensation average. Or consider that the 62 employees of the USDA’s Office of Chief Economist earned an average $177,000 each in wages and benefits in 2010. It isn’t just rocket scientists that are earning high federal compensation, it is also workers in many run-of-the-mill bureaucratic jobs.
More importantly, the federal workforce has always had a heavy contingent of skilled professionals such as lawyers. So that is not new, and thus it cannot explain the dramatically faster growth in federal compensation compared to private compensation […].
Besides, if these diplomas are what gave is the health care reform, the financial bill making its way to Congress and the stimulus, then I would argue that we would be better off if high-school dropouts to run Congress.
That being said, if bureaucrats have job security, their workforce grows during recession, and they make increasingly more money, being a proud public sector employee should become your little ones’ dream. In this context, wanting to be a fireman or a princess is so yesterday.