Generous Benefit Plans Leading Government Employees to Be Nearly 40 Percent More Expensive than Private Sector

Office Work

State and local government workers were roughly 40% more expensive to employ than private sector employees in the second quarter of 2024, largely due to generous benefit plans, according to data from the Bureau of Labor Statistics (BLS) released Tuesday.

Total compensation costs, including wages, salaries and benefits, averaged $43.94 per hour for private sector employees, approximately 40% less than the $61.37 average hourly compensation cost for state and local government workers, according to the BLS data. The disparity was primarily driven by pricey government benefit plans, with costs averaging $13.04 per hour for private industry workers, over 80% less than the $23.57 per hour in benefit costs for their state and local government counterparts.

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Arizona Supreme Court Unanimously Rules Against Unions in Labor Suit

Teamster Protest

The Arizona Supreme Court ruled that allowing government employees to take paid time to take care of union-related activities is against the constitution’s gift clause.

In Gilmore v. Gallego determined that “release time” as part of a Memorandum of Understanding between the American Federation of State, County, and Municipal Employees and the city is an incorrect use of taxpayer dollars.

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