State and Local Government Employment Overview

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1 State and Local Government Employment Overview Katharine G. Abraham University of Maryland and NBER April 17, 2018

2 Introduction General background for today s discussion How large is the state and local government workforce? How has it evolved over time? What are its demographic characteristics (sex, age, education)? How does this compare to the private sector workforce? What is the occupational distribution of the state and local government workforce? How does this compare to the private sector workforce? How much do state and local government workers earn? How do their earnings compare to those of workers in the private sector? Draw on several Bureau of Labor Statistics data sources Current Employment Statistics (CES) Current Population Survey (CPS) Occupational Employment Statistics (OES)

3 Trends in State and Local Government Employment

4 25 State and Local Government Employment, Millions, 1990 to Current Employment Statistics Current Population Survey

5 16% State and Local Government Employment, Percent of Nonfarm Wage and Salary Employment, 1990 to % 12% 1 8% 6% 4% 2% Current Employment Statistics Current Population Survey

6 Demographics of the State and Local Government Workforce

7 7 Percent of Employment Female, Private Wage and Salary versus State and Local, Private Wage and Salary State and Local

8 3 Employment by Age Group, Private Wage and Salary versus State and Local, % 2 15% 1 5% plus Private Wage and Salary State and Local

9 3 Employment by Age Group, Private Wage and Salary versus State and Local, % 2 15% 1 5% plus Private Wage and Salary State and Local

10 3 Employment by Age Group, Private Wage and Salary versus State and Local, % 2 15% 1 5% plus Private Wage and Salary State and Local

11 3 Employment by Age Group, Private Wage and Salary versus State and Local, % 2 15% 1 5% plus Private Wage and Salary State and Local

12 35% Employment by Education, Private Wage and Salary versus State and Local, % 2 15% 1 5% Less than High School High School Some College College Graduate Degree Private Wage and Salary State and Local

13 35% Employment by Education, Private Wage and Salary versus State and Local, % 2 15% 1 5% Less than High School High School Some College College Graduate Degree Private Wage and Salary State and Local

14 35% Employment by Education, Private Wage and Salary versus State and Local, % 2 15% 1 5% Less than High School High School Some College College Graduate Degree Private Wage and Salary State and Local

15 Long-Term Changes in State and Local Government Workforce Demographics

16 Percent of Employment Female, Private Wage and Salary versus State and Local, 1990 and Employment 2017 Employment Private Wage and Salary State and Local Private Wage and Salary State and Local

17 16% State and Local Minus Private Wage and Salary, Percent of Employment Female, 1990 and % 12% 11.5% 13.4% 1 8% 6% 4% 2%

18 Employment by Age Group, Private Wage and Salary versus State and Local, 1990 and employment 35% 3 25% 2 15% 1 5% 2017 employment 35% 3 25% 2 15% 1 5% Private State and Local Private State and Local

19 1 8% 6% 4% 2% -2% State and Local Minus Private Wage and Salary, Percent of Employment by Age Group, 1990 and % 2% 6% plus 5% 2% 2% 1% 1% 1% -4% -6% -8% -1-7% -6% -4% -12% -11%

20 Employment by Education, Private Wage and Salary versus State and Local, 1990 and Employment 2017 Employment 4 35% 3 25% 2 15% 1 5% 4 35% 3 25% 2 15% 1 5% Private State and Local Private State and Local

21 2 15% State and Local Minus Private Wage and Salary, Percent of Employment by Education, 1992 and % 16% 1 5% 8% 5% -5% -1 LTHS HS SOMECOLL COLL GRAD -3% -4% -6% -9% -11% -1-15%

22 Occupations of the State and Local Government Workforce

23 Employment by Occupation, Private Wage and Salary versus State and Local, 2017 Management and Related 5% 1 15% 2 25% 3 35% Teachers and Related Other Professional and Technical Sales Administrative Protective Service Other Service Craft, Operatives, Laborers and Farmers Private Wage and Salary State and Local

24 Employment by Occupation, Private Wage and Salary versus State and Local, 2017 Management and Related 5% 1 15% 2 25% 3 35% Teachers and Related Other Professional and Technical Sales Administrative Protective Service Other Service Craft, Operatives, Laborers and Farmers Private Wage and Salary State and Local

25 Employment by Occupation, Private Wage and Salary versus State and Local, Men, 2017 Management and Related 5% 1 15% 2 25% 3 35% 4 Teachers and Related Other Professional and Technical Sales Administrative Protective Service Other Service Craft, Operatives, Laborers and Farmers Private Wage and Salary State and Local

26 Employment by Occupation, Private Wage and Salary versus State and Local, Men, 2017 Management and Related 5% 1 15% 2 25% 3 35% 4 Teachers and Related Other Professional and Technical Sales Administrative Protective Service Other Service Craft, Operatives, Laborers and Farmers Private Wage and Salary State and Local

27 Employment by Occupation, Private Wage and Salary versus State and Local, Women, 2017 Management and Related 5% 1 15% 2 25% 3 35% 4 Teachers and Related Other Professional and Technical Sales Administrative Protective Service Other Service Craft, Operatives, Laborers and Farmers Private Wage and Salary State and Local

28 Employment by Occupation, Private Wage and Salary versus State and Local, Women, 2017 Management and Related 5% 1 15% 2 25% 3 35% 4 Teachers and Related Other Professional and Technical Sales Administrative Protective Service Other Service Craft, Operatives, Laborers and Farmers Private Wage and Salary State and Local

29 State and Local Government Wages

30 Average Annual Mean Wages State and local government average annual mean wage somewhat above average for private sector $49,500 private sector $59,270 state government $52,250 local government Averages do not account for differences in education, experience, occupation or other factors across sectors Do not address question whether state and local government employees overpaid or underpaid Mean wages for occupations concentrated in state and local government differ considerably across states Elementary school teachers: $40,530 to $80,540 Middle school teachers: $42,040 to $80,940 High school teachers: $41,880 to $85,420 Police and sheriff s patrol officers: $35,520 to $100,090 Source: Occupational Employment Statistics, May 2017

31 Summary

32 Some Takeaways After many years of steady growth, since the start of the Great Recession, state and local government employment has leveled off and declined as a share of overall employment State and local government employees more female, older and more educated than private sector employees Since 1990, some growth in difference between state and local government versus private sector with respect to female share Over same period, some convergence between state and local government and private sector in age and education Teaching and protective service occupations account for more than 40 percent of all state and local government employment Teaching occupations especially important for women Protective service occupations especially important for men Average annual wages of state and local government employees somewhat above the private sector average

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