Two Americas: Public vs. Private Sector Empoyees
From today's Detroit News: According to the Michigan Department of Labor and Economic Growth the average pay in 2006 for state government employees was $49,660. For private-sector workers, the comparable figure was $42,588. That's a difference of close to 17 percent.
And state employees often receive more generous health and retirement benefits than private sector employees. While new state employees receive 401(k)-type retirement contributions, older employees still receive pensions. Michigan civil service employees receive benefits equal on average to 54% of base payroll; nationally, private sector workers on average receive benefits equal to 41% of base payroll.
The Detroit News cites a Mackinac Center study "What Price Government?" that details higher salaries for public sector jobs compared to comparable private sector jobs.
Yes, there are Two Americas in Michigan: One for those work for the government and another for those in the private sector.