An issue for Congress and state and local governments is whether the pay and benefits of public workers are comparable to those of workers in the private sector. The effect of the recession that officially began in December 2007 and ended in June 2009 on government budgets increased the interest of policy makers in the compensation of public sector employees. Among the ways to reduce budget deficits, policy makers are considering the pay and benefits of public sector employees. The number of people employed in both the private and public sectors has increased steadily as the U.S. economy has grown. Conversely, from 2010 to 2013, private sector employment grew by approximately 6.7 million jobs, while public sector employment fell by an estimated 626,000 jobs. This percentage increased to 19.2% in 1975, and then fell to 15.7% in 1999. Reflecting the effects of the 2007-2009 recession on the budgets of state and local governments, from 2010 to 2013 public sector employment fell from 17.3% to 16.0% of total employment. In 2009, for the first time, a majority of workers covered by a collective bargaining agreement were employed in the public sector (8.7 million workers in the public sector, compared to 8.2 million private sector workers). By 2013, the situation had reversed; a slight majority of workers covered by a collective bargaining agreement were employed in the private sector (8.1 million private sector workers, compared to 7.9 million public sector workers). The number of workers covered by a collective bargaining agreement is greater in the private sector than in the public sector. Nevertheless, since 1983, the percentage of workers represented by a union has fallen in both the private and public sectors. In the federal government, most employees do not bargain over wages. Age

Reflecting the aging of the U.S. labor force, workers in both the private and public sectors have become older. Nevertheless, employees in the public sector are older than private sector workers. In 2013, 51.7% of full-time public sector workers were between the ages of 45 and 64, compared to 42.4% of full-time private sector workers. Federal workers are older than employees of state and local governments. In 2013, 56.7% of federal workers were between the ages of 45 and 64, compared to 49.7% of state employees and 52.1% of employees of local governments. Employees with more work experience generally earn more than workers with less experience. Thus, the age difference between private and public sector workers may indicate that public sector workers have more years of experience than private sector workers. Gender

Reflecting the increased participation of women in the labor force, the share of jobs held by women has increased in both the private and public sectors. In 2013, women held almost three-fifths of full-time jobs in state and local governments (57.7% for both state and local governments). By contrast, women held approximately two-fifths of full-time jobs in the federal government and in the private sector (42.2% and 41.7%, respectively). Education

On average, public sector employees have more years of education than private sector workers. In 2013, 53.6% of workers in the public sector had a bachelor's, advanced, or professional degree, compared to 34.9% of private sector workers. Workers with more education generally earn more than workers with less education. (The analysis in the first part of this report of the number of workers covered by a collective bargaining agreement was for all full-time and part-time wage and salary workers ages 16 and over.) However, in 2013, a larger share of public sector than private sector workers were employed in "management, professional, and related occupations" (56.2% of public sector workers, compared to 37.8% of private sector workers). In part, more public sector workers were employed in these occupations because 25.7% of all public sector workers were employed in "education, training, and library" occupations, compared to 2.3% of all private sector workers. Similarly, more workers in the private sector were employed in "production" occupations (7.9% in the private sector and 1.2% in the public sector). Detailed Occupations

Broad occupational categories may not fully distinguish between detailed occupations that are concentrated in either the private or public sectors. Many detailed occupations may require similar skills, however. However, private sector workers were more likely than federal workers to live in areas with 5 million or more people. The tables show the total number of persons employed, the number of workers employed in the private and public sectors, the percentage of total employment that was in the private sector, and the percentage of workers in the private and public sectors who were covered by a collective bargaining agreement.
An issue for Congress and state and local governments is whether the pay and benefits of public workers are comparable to those of workers in the private sector. In addition, among the ways to reduce budget deficits, policy makers are considering the pay and benefits of public sector employees.
The number of people employed in both the private and public sectors has increased steadily as the U.S. economy has grown. However, after increasing to 19.2% of total employment in 1975, the percentage of all jobs that are in the public sector fell to 15.7% in 1999. In 2013, public sector jobs accounted for 16.0% of total employment.
The recession that officially began in December 2007 and ended in June 2009 affected employment in both the private and public sectors. From 2007 to 2010, the number of jobs in the private sector fell by an estimated 7.9 million, while the number of jobs in the public sector increased by almost 272,000. Conversely, from 2010 to 2013, private sector employment grew by approximately 6.7 million jobs, while public sector employment fell by about 626,000 jobs. Reflecting the effects of the 2007-2009 recession on the budgets of state and local governments, from 2010 to 2013, public sector employment as a share of total employment fell from 17.3% to 16.0%.
Among all full-time and part-time workers ages 16 and over, the number of workers covered by a collective bargaining agreement has fallen in both the private and public sectors. The decline has been greater in the private sector. In 2009, for the first time, a majority of workers who were covered by a collective bargaining agreement were employed in the public sector (8.7 million workers in the public sector, compared to 8.2 million private sector workers). By 2013, the situation had reversed; a slight majority of workers covered by a collective bargaining agreement were employed in the private sector (8.1 million private sector workers, compared to 7.9 million public sector workers). In the federal government, except for the Postal Service and some smaller agencies, employees do not bargain over wages.
Among workers ages 18 to 64 who work full-time, differences in characteristics that may affect the relative pay and benefits of private and public sector workers include the following:
Age. Reflecting the aging of the U.S. labor force, workers in both the private and public sectors have become older. Nevertheless, employees in the public sector are older than private sector workers. In 2013, 51.7% of public sector workers were between the ages of 45 and 64, compared to 42.4% of full-time private sector workers. Federal workers are older than employees of state and local governments. In 2013, 56.7% of federal workers were between the ages of 45 and 64, compared to 49.7% of state employees and 52.1% of employees of local governments. Workers who have more years of work experience generally earn more than workers with less experience. Gender. Reflecting the increased participation of women in the labor force, the share of jobs held by women has increased in both the private and public sectors. In 2013, women held almost three-fifths (57.7%) of full-time jobs in state and local governments. By contrast, women held approximately two-fifths of full-time jobs in the federal government and in the private sector (42.2% and 41.7%, respectively). Education. On average, public sector employees have more years of education than private sector workers. In 2013, 53.6% of workers in the public sector had a bachelor's, advanced, or professional degree, compared to 34.9% of private sector workers. Generally, workers with more years of education earn more than workers with less years of education. Occupation. A larger share of public sector than private sector workers are employed in "management, professional, and related occupations." In 2013, 56.2% of public sector workers and 37.8% of private sector workers were employed in these occupations. In part, more public sector workers were employed in these occupations because 25.7% of all public sector workers were employed in "education, training, and library" occupations, compared to 2.3% of all private sector workers. Workers in management and professional occupations generally earn more than workers in other occupations. However, comparisons of the compensation of private and public sector workers that use broad occupational categories may miss differences between detailed occupations. Many detailed occupations are concentrated in either the private or public sectors. Nevertheless, many detailed occupations may require similar skills. Union coverage. Although the number of workers covered by a collective bargaining agreement is greater in the private sector than in the public sector, the percentage of workers covered by a collective bargaining agreement is greater in the public sector than in the private sector. Metropolitan area. Private sector workers are more likely than federal workers to live in major metropolitan areas (i.e., areas with 5 million or more people).