According to the Department of Labor, public servants’ compensation rose at a faster pace than private sector workers in 2023 Said Wednesday.
The employment cost index for state and local government employees rose 4.6% last year. This was slightly lower than the 4.8% rise from the previous year.
The rate of increase in the index showing employment costs in the private sector was modest at 4.1%.
These numbers are not adjusted for inflation. After adjusting for inflation, government employment costs rose 1.3%, while private sector employment costs rose 0.9%.
Wages in the government sector increased by 4.7%. Private sector wage costs rose by 4.3%.
The bigger difference was in the cost of the benefits package. Government benefits increased by 4.6%, while private sector benefits increased by 3.6%.
This is a change from last year, when private compensation increased by 5.1% in nominal terms (down 1.3% after adjusting for inflation), while government compensation increased by 4.8% (down 1.5% after inflation).
The employment cost index measures the change in compensation for each hour worked by an employee.
