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State and Local Governments Not Flourishing
by CPPA Policy Team
Introduction
In
mid-October 2008, the U.S. Census Bureau released new data from its survey of state and local government employment.
The survey data alone may be misleading, suggesting that readers believe government is booming, wages are skyrocketing, and more and more people are on the payroll. What, in fact, is happening in Utah is a slight growth in the number of employees and state and local government wages growing at a slower rate than private sector wages.
Number of State and Local Government Employees in Utah
Utah sits right in the middle of the pack of the number of local and state government employees per capita. The Bureau of Labor Statistics figures show that while some states such as Wyoming have 103 state and local government employees per 1,000 population (2007), Utah has 60 state and local government employees per 1,000 in 2007 compared with 63 per 1,000 (average) in 2002. The state with the lowest number of state and local government employees is Pennsylvania, with 49 per 1,000. Tables showing these figures for all 50 states are appended to this
report.
Additionally, a breakdown of Utah employment by ownership sector shows that in 2002, private sector jobs accounted for 82.4% of employment, but by 2007 this had increased to 84.0%. This means that the percentage of state, local and federal government
jobs decreased from 17.6% to 16.0%.
Additionally,
of the 177,500 jobs that were added to Utah during this time period, 93.8% were in
the private sector (U.S. Bureau of Labor Statistics Quarterly
Census of Employment and Wages).
Population Growth and Government
Jobs
The U.S. Census Bureau Population Estimate Series shows that Utah added 308,000 new residents between 2002 and 2007, representing a 13.2% increase. This ranks Utah as third in the nation for population growth, just behind Nevada and Arizona.
So while government employment grew by 11,289 jobs in this period, representing a 7.6% increase, the population grew by 13.2%.
Education & Health Care Sector Jobs
This sector is the third largest employer for all Utahns—whether the institution they work for is private or public. It is also a rapidly growing sector—giving the double whammy of aging baby-boomers in need of health care and the state’s large
school age population. From 2002 to 2007, private companies that provide these services added almost 26,000 new jobs—a 25.9% increase. Meanwhile, government employment in these sectors grew much more slowly. There were 3,631 jobs added
to educational institutions run by local government entities (usually school districts) for an increase of 6.5%. The largest percent increase came from local government entities responsible for providing health care and social services—these jobs increased by 19.5% which is closer to the private sector’s growth. However, when the numbers are examined more closely this increase
represents only 455 jobs statewide (U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages).
Regarding the higher education figures contained within the Census report, comparing those figures with data provided by the Utah System of Higher Education and the data reported to the US Bureau of Labor Statistics, there are concerns with the
integrity of the Census Bureau figures. The Census report is clearly in error when it lists the growth in jobs for higher education instructors. The report notes that the state added 3,047 full-time equivalent professors (see Table 1).
This, if it were accurate, would be a 59 percent increase from 2002.
Table 1: Full Time
Equivalent Employment for Higher Education-Instructional, Utah
|
Year
|
Full-time Equivalent Employment
|
|
2002
|
5,126
|
|
2003
|
5,158
|
|
2004
|
5,393
|
|
2005
|
5,428
|
|
2006
|
5,699
|
|
2007
|
8,173*
|
Source: US Census Bureau, Public Employment Data, State and
Local Governments, Utah.
*In 2007, the Census listed three categories: full-time
employees, part-time employees, and full-time equivalent employment. The full time employee figure was 5,913; the
full time equivalent figure was 8,173.
In all previous years, the Census listed only full-time equivalent data.
Indeed, it
would be a significant increase, if true.
But, it simply isn’t accurate.
The Utah System of Higher Education reports annually on staffing within
higher education.[1] It reported that the full-time equivalent
count for faculty, adjunct faculty, and wage rate faculty was 4,910 employees
in 2002. The number of full-time
faculty increased to 5,339, an increase of only 429 FTEs (see Table 2). This is
an increase of 8.7% over the five-year period.
Table 2: USHE Employee
FTE Count for Faculty, Adjunct, and Wage Rate Faculty
|
Year
|
Full-time Equivalent Count
|
|
2001
|
4,783
|
|
2002
|
4,910
|
|
2003
|
4,682
|
|
2004
|
4,925
|
|
2005
|
4,587
|
|
2006
|
4,893
|
|
2007
|
5,339
|
Note: This count includes all FTE for Regular Faculty,
Adjunct, and Wage Rated Faculty in the USHE. This includes both appropriated
and non-appropriated FTEs. It does not include teaching assistants. The source
is the USHE Data Books.
Government Wages
State and
local government payrolls accounted for $5.6 billion in wages in 2007 or 12.4%
of total payrolls in Utah. Since 2002, state government wages grew 26.1% and
local government grew by 23.3%. Meanwhile, the private sector increased its
wages 45.9% during the same time period. This growth in private sector wages
also translated into a higher percentage of total wages being generated by
private employers, as shown below.
Another comparison that can be done, with caution, is to
divide total wages by total employment to get an approximate wage per employee
that can be used to compare the different sectors. This is a figure that should
be used with caution because neither figure accounts for differences in wages
earned by full-time, part-time or seasonal employees. Given that retail,
hospitality and personal service jobs comprise a relatively large portion of
Utah private sector employment and these industries have large numbers of
employees who work part-time, this is of concern.
For the private sector in Utah during 2002, total wages
divided by total employees equaled an annual “wage” of $30,011. By 2007, that
had grown to $36,664. This was a growth of 22.1% over the five-year period.
Meanwhile state government had figures of $36,069 and $43,011, slightly higher
than the private sector. However, the growth rate was lower, 19.2%. Local
government had wage equivalents lower than the private sector—$27,294 in 2002
and $30,985. Its growth rate was also the lowest of all sectors, at 13.5%.
When inflation is factored in, the growth in wages per
employee in all sectors slows down considerably. Earnings in the private sector
grow by only 6.0% over the five-year period. State government saw a 3.5%
increase in wages after factoring in inflation while local government actually
saw a decrease in wages per employee—down 1.5%. This means in real terms local
government employees were earning more in 2002 than they are now.
Conclusion
Trying to
measure and compare employment and wage figures between sectors, across
political and economic boundaries is notoriously tricky and no one statistic
can tell the full story. To look at the growth in Utah’s state and local
government sectors without comparing it to what is happening in the overall
Utah economy is irresponsible at best. To then take those figures and compare
Utah to other states that may not have been experiencing the same kind of
economic or demographic growth is cause for great concern. This is especially
when it appears the entire US economy is sliding into a recession. Recessions
usually mean that private sector employers will cut payrolls at the same time
there will be an increased demand for public sector services. This increase in
demand is usually accompanied by an increase in public sector payrolls. Thus, depending on how difficult economic
conditions become in the near future, all states may expect the proportion of
private sector jobs to decline while government will become a larger share of
the total employment pie. In addition, the unique demographics of Utah
guarantee there will always be a demand for public school teachers and public
health and social service workers, which make up a considerable portion of
public sector employment in Utah.
State and Local Government Employees
per 1,000 Residents 2002 and 2007
States in Alphabetical Order
|
State
|
Government Employees per 1,000
Residents 2002
|
Government Employees per 1,000
Residents 2007
|
|
State Government
|
Local Government
|
Total
|
2002 Rank
|
State Government
|
Local Government
|
Total
|
2007 Rank
|
AK
|
34
|
57
|
91
|
2
|
33
|
54
|
87
|
2
|
AL
|
19
|
45
|
64
|
25
|
20
|
46
|
67
|
19
|
AR
|
21
|
38
|
60
|
37
|
23
|
40
|
62
|
32
|
AZ
|
13
|
45
|
58
|
43
|
12
|
43
|
55
|
46
|
CA
|
12
|
48
|
61
|
34
|
12
|
47
|
60
|
39
|
CO
|
15
|
48
|
64
|
26
|
15
|
48
|
63
|
28
|
CT
|
19
|
45
|
63
|
29
|
20
|
45
|
65
|
24
|
DE
|
33
|
27
|
61
|
35
|
33
|
28
|
62
|
34
|
FL
|
13
|
41
|
54
|
47
|
10
|
42
|
52
|
48
|
GA
|
17
|
44
|
61
|
33
|
16
|
44
|
60
|
35
|
HI
|
54
|
14
|
68
|
17
|
54
|
14
|
68
|
15
|
IA
|
16
|
55
|
71
|
11
|
17
|
55
|
72
|
12
|
ID
|
18
|
51
|
69
|
15
|
17
|
49
|
66
|
21
|
IL
|
11
|
47
|
58
|
44
|
10
|
47
|
56
|
43
|
IN
|
15
|
43
|
57
|
45
|
14
|
44
|
58
|
42
|
KS
|
15
|
63
|
78
|
4
|
15
|
64
|
79
|
4
|
KY
|
21
|
42
|
62
|
32
|
20
|
42
|
62
|
33
|
LA
|
23
|
49
|
73
|
8
|
24
|
48
|
72
|
11
|
MA
|
16
|
40
|
56
|
46
|
16
|
40
|
56
|
44
|
MD
|
18
|
41
|
59
|
38
|
18
|
42
|
60
|
37
|
ME
|
19
|
46
|
65
|
22
|
19
|
46
|
65
|
23
|
MI
|
14
|
44
|
59
|
41
|
14
|
42
|
56
|
45
|
MN
|
14
|
54
|
67
|
18
|
14
|
51
|
65
|
22
|
MO
|
16
|
47
|
63
|
31
|
16
|
47
|
63
|
29
|
MS
|
20
|
51
|
71
|
9
|
20
|
53
|
72
|
10
|
MT
|
22
|
48
|
70
|
12
|
23
|
47
|
69
|
13
|
NC
|
19
|
48
|
67
|
20
|
20
|
48
|
67
|
18
|
ND
|
27
|
55
|
82
|
3
|
28
|
57
|
85
|
3
|
NE
|
19
|
59
|
78
|
5
|
18
|
60
|
78
|
5
|
NH
|
16
|
42
|
58
|
42
|
16
|
44
|
60
|
38
|
NJ
|
15
|
45
|
60
|
36
|
16
|
47
|
63
|
27
|
NM
|
25
|
51
|
77
|
6
|
26
|
53
|
78
|
6
|
NV
|
13
|
38
|
52
|
48
|
13
|
40
|
53
|
47
|
NY
|
13
|
55
|
67
|
19
|
12
|
55
|
68
|
17
|
OH
|
11
|
48
|
59
|
39
|
12
|
47
|
59
|
40
|
OK
|
23
|
48
|
71
|
10
|
23
|
52
|
75
|
7
|
OR
|
14
|
49
|
63
|
27
|
17
|
48
|
65
|
25
|
PA
|
11
|
38
|
49
|
50
|
11
|
38
|
49
|
50
|
RI
|
17
|
34
|
51
|
49
|
16
|
34
|
50
|
49
|
SC
|
22
|
47
|
69
|
16
|
21
|
47
|
68
|
16
|
SD
|
18
|
57
|
75
|
7
|
18
|
56
|
73
|
9
|
TN
|
14
|
44
|
59
|
40
|
15
|
44
|
59
|
41
|
TX
|
15
|
50
|
65
|
21
|
14
|
49
|
63
|
26
|
UT
|
22
|
42
|
63
|
28
|
20
|
40
|
60
|
36
|
VA
|
19
|
46
|
65
|
23
|
19
|
48
|
67
|
20
|
VT
|
24
|
45
|
70
|
13
|
27
|
47
|
74
|
8
|
WA
|
20
|
49
|
69
|
14
|
20
|
48
|
68
|
14
|
WI
|
14
|
51
|
64
|
24
|
14
|
49
|
63
|
31
|
WV
|
23
|
40
|
63
|
30
|
22
|
41
|
63
|
30
|
WY
|
25
|
76
|
101
|
1
|
24
|
79
|
103
|
1
|
Total
|
15
|
47
|
62
|
NA
|
15
|
47
|
62
|
NA
|
Source: US Bureau of Labor Statistics Quarterly Census of Employment
& Wages (Employment data) and US Census Bureau Population Estimates Series
(Population data) Neighboring states to Utah are in Italics
State and Local Government Employees
per 1,000 Residents 2002 and 2007
States Ranked by 2007 Total
Employees
|
State
|
Government Employees per 1,000
Residents 2002
|
Government Employees per 1,000
Residents 2007
|
|
State Government
|
Local Government
|
Total
|
Rank of 2002 Total
|
State Government
|
Local Government
|
Total
|
Rank of 2007 Total
|
|
WY
|
25
|
76
|
101
|
1
|
24
|
79
|
103
|
1
|
|
AK
|
34
|
57
|
91
|
2
|
33
|
54
|
87
|
2
|
|
ND
|
27
|
55
|
82
|
3
|
28
|
57
|
85
|
3
|
|
KS
|
15
|
63
|
78
|
4
|
15
|
64
|
79
|
4
|
|
NE
|
19
|
59
|
78
|
5
|
18
|
60
|
78
|
5
|
|
NM
|
25
|
51
|
77
|
6
|
26
|
53
|
78
|
6
|
|
OK
|
23
|
48
|
71
|
10
|
23
|
52
|
75
|
7
|
|
VT
|
24
|
45
|
70
|
13
|
27
|
47
|
74
|
8
|
|
SD
|
18
|
57
|
75
|
7
|
18
|
56
|
73
|
9
|
|
MS
|
20
|
51
|
71
|
9
|
20
|
53
|
72
|
10
|
|
LA
|
23
|
49
|
73
|
8
|
24
|
48
|
72
|
11
|
|
IA
|
16
|
55
|
71
|
11
|
17
|
55
|
72
|
12
|
|
MT
|
22
|
48
|
70
|
12
|
23
|
47
|
69
|
13
|
|
WA
|
20
|
49
|
69
|
14
|
20
|
48
|
68
|
14
|
|
HI
|
54
|
14
|
68
|
17
|
54
|
14
|
68
|
15
|
|
SC
|
22
|
47
|
69
|
16
|
21
|
47
|
68
|
16
|
|
NY
|
13
|
55
|
67
|
19
|
12
|
55
|
68
|
17
|
|
NC
|
19
|
48
|
67
|
20
|
20
|
48
|
67
|
18
|
|
AL
|
19
|
45
|
64
|
25
|
20
|
46
|
67
|
19
|
|
VA
|
19
|
46
|
65
|
23
|
19
|
48
|
67
|
20
|
|
ID
|
18
|
51
|
69
|
15
|
17
|
49
|
66
|
21
|
|
MN
|
14
|
54
|
67
|
18
|
14
|
51
|
65
|
22
|
|
ME
|
19
|
46
|
65
|
22
|
19
|
46
|
65
|
23
|
|
CT
|
19
|
45
|
63
|
29
|
20
|
45
|
65
|
24
|
|
OR
|
14
|
49
|
63
|
27
|
17
|
48
|
65
|
25
|
|
TX
|
15
|
50
|
65
|
21
|
14
|
49
|
63
|
26
|
|
NJ
|
15
|
45
|
60
|
36
|
16
|
47
|
63
|
27
|
|
CO
|
15
|
48
|
64
|
26
|
15
|
48
|
63
|
28
|
|
MO
|
16
|
47
|
63
|
31
|
16
|
47
|
63
|
29
|
|
WV
|
23
|
40
|
63
|
30
|
22
|
41
|
63
|
30
|
|
WI
|
14
|
51
|
64
|
24
|
14
|
49
|
63
|
31
|
|
AR
|
21
|
38
|
60
|
37
|
23
|
40
|
62
|
32
|
|
KY
|
21
|
42
|
62
|
32
|
20
|
42
|
62
|
33
|
|
DE
|
33
|
27
|
61
|
35
|
33
|
28
|
62
|
34
|
|
GA
|
17
|
44
|
61
|
33
|
16
|
44
|
60
|
35
|
|
UT
|
22
|
42
|
63
|
28
|
20
|
40
|
60
|
36
|
|
MD
|
18
|
41
|
59
|
38
|
18
|
42
|
60
|
37
|
|
NH
|
16
|
42
|
58
|
42
|
16
|
44
|
60
|
38
|
|
CA
|
12
|
48
|
61
|
34
|
12
|
47
|
60
|
39
|
|
OH
|
11
|
48
|
59
|
39
|
12
|
47
|
59
|
40
|
|
TN
|
14
|
44
|
59
|
40
|
15
|
44
|
59
|
41
|
|
IN
|
15
|
43
|
57
|
45
|
14
|
44
|
58
|
42
|
|
IL
|
11
|
47
|
58
|
44
|
10
|
47
|
56
|
43
|
|
MA
|
16
|
40
|
56
|
46
|
16
|
40
|
56
|
44
|
|
MI
|
14
|
44
|
59
|
41
|
14
|
42
|
56
|
45
|
|
AZ
|
13
|
45
|
58
|
43
|
12
|
43
|
55
|
46
|
|
NV
|
13
|
38
|
52
|
48
|
13
|
40
|
53
|
47
|
|
FL
|
13
|
41
|
54
|
47
|
10
|
42
|
52
|
48
|
|
RI
|
17
|
34
|
51
|
49
|
16
|
34
|
50
|
49
|
|
PA
|
11
|
38
|
49
|
50
|
11
|
38
|
49
|
50
|
|
Total
|
15
|
47
|
62
|
NA
|
15
|
47
|
62
|
NA
|
Source: US Bureau of Labor Statistics Quarterly Census of Employment
& Wages (Employment data) and US Census Bureau Population Estimates Series
(Population data) Neighboring states to Utah are in Italics
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