State and Local Sector Wage Growth Outpaced By Private Sector

An article in the magazine Governing details “wage stagnation” in the public sector, showing that in recent months (and the time since the “great recession”) private sector employment has lagged other segments of the economy.

From the article:

At its peak in 2008, these governments had 19,748,000 employees. In the six years after that, states and localities shed an estimated 565,000 jobs, according to the Bureau of Labor Statistics (BLS).

With a smaller workforce, one might expect wages to go up as the national economy improves. But because state and local revenues have not returned to their 2007 levels, wage increases have been modest at best. State and local government wages and salaries increased by 1.6 percent in the 12-month period ending last December, compared with a private-sector increase of 2.2 percent over the same period, according to the BLS.

Read the full article on the Governing website.

Michael Sanderson

Executive Director Maryland Association of Counties