Our Public Employee Problem
Federal workers are drastically overpaid, a new CBO analysis shows, and state workers pose their own set of problems.
Congress declined to provide across-the-board salary increases for federal workers in 2011, 2012, and 2013. As a result, between 2010 and 2015, these workers’ pay grew just 2 percent while private-sector pay grew 10 percent thanks to the recovery. And yet federal employees still came out ahead—by a wide margin—when it came to compensation.
An eye-popping new report from the Congressional Budget Office reveals that on average, including both wages and benefits, federal workers receive compensation about 17 percent higher than comparable private-sector employees. Indeed, aside from those with the very highest degrees, Americans across the educational spectrum earn more if they work for the federal government than otherwise: