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Federal pay ahead of private industry

Federal pay ahead of private industry

According to an analysis by USATODAY, the typical federal worker is paid 20% more than a private-sector worker in the same occupation.

Dennis Cauchon | USA TODAY via YellowBrix

Federal employees earn higher average salaries than private-sector workers in more than eight out of 10 occupations, a USA TODAY analysis of federal data finds.

Accountants, nurses, chemists, surveyors, cooks, clerks and janitors are among the wide range of jobs that get paid more on average in the federal government than in the private sector.

Overall, federal workers earned an average salary of $67,691 in 2008 for occupations that exist both in government and the private sector, according to Bureau of Labor Statistics data. The average pay for the same mix of jobs in the private sector was $60,046 in 2008, the most recent data available.

These salary figures do not include the value of health, pension and other benefits, which averaged $40,785 per federal employee in 2008 vs. $9,882 per private worker, according to the Bureau of Economic Analysis.

Federal pay has become a hot political issue in recent months because of concerns over the federal budget deficit and recession-battered wages in the private sector.

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Sen. Scott Brown, R-Mass., made federal pay an issue in his successful campaign to fill Edward Kennedy’s seat and is fighting for a pay freeze.

The federal government spends about $125 billion annually on compensation for about 2 million civilian employees.

“The data flip the conventional wisdom on its head,” says Cato Institute budget analyst Chris Edwards, a critic of federal pay policy. “Federal workers make substantially more than private workers, not less, in addition to having a large advantage in benefits.”

But National Treasury Employees Union President Colleen Kelley says the comparison is faulty because it “compares apples and oranges.” Federal accountants, for example, perform work that has more complexity and requires more skill than accounting work in the private sector, she says.

“When you look at the actual duties, you see that very few federal jobs align with those in the private sector,” she says. She says federal employees are paid an average of 26% less than non-federal workers doing comparable work.

Office of Personnel Management spokeswoman Sedelta Verble, says higher pay also reflects the longevity and older age of federal workers.

USA TODAY used Bureau of Labor Statistics data to compare salaries in every federal job that had a private-sector equivalent. For example, the federal government’s 57,000 registered nurses working for the Veterans Administration and elsewhere were paid an average of $74,460 a year, $10,680 more than the average for private-sector nurses.

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