Don't Discount Public-Sector Jobs

With unemployment on the rise, job seekers might want to take another look at local schools, fire houses, police stations and court rooms.

State- and local-government jobs have higher wages and more comprehensive benefits than private-sector jobs, and are cutting back jobs at a much slower rate than the national level, according to independent research and government data.

A recent study by the Employee Benefit Research Institute found that state and local governments pay out $39.50 per hour in salary and benefits, on average. That's 51% more than the $26.09 per hour offered by the private sector.

The study also found that the government pays more than twice as much for health insurance, and more than three times as much for retirement savings plans, than private employers. Overall, salaries are 43% higher at $26.26 per hour and benefits are 73% higher at $13.24 per hour.

Ken McDonnell, a spokesman for the institute, says that the survey, conducted since 1991, consistently shows that government jobs pay better. The reason for the disparity is more unionization at the government level, as well as the nature of work.

For instance, teachers require high levels of education, while those in public-safety take on many more risks than the average office worker. Tenure also plays a part in the compensation disparity, since there is far less turnover in government jobs, McDonnell adds.

"The longer you are with your employer, the higher your compensation is going to be," he says.