(From an article by Josh Barro of the Mahattan Institute of Policy Research)
The problem: During the recession, public employees have continued to see strong wage growth, well ahead of the private sector. From the first quarter of 2007 through the last quarter of 2009, the average value of hourly compensation (wages plus benefits) rose by 9.8 percent for employees of state and local governments, compared to 6.9 percent in the private sector
After adjusting for inflation, public employees have seen a rise in real hourly income over this period, while private employees have not.
Over this period, public-employee compensation has risen nearly 50 percent faster than private-employee compensation. Governments are aggressively increasing public-employee compensation even though labor markets are loose and states face record budget deficits.
My point. And then we wonder why states have a budget problem.
You can read the whole article by clicking here
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest
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