Public vs private pay · Michigan

Public vs private sector pay in Michigan by occupation (2023)

Data snapshot 2023-12-31 · part of High Floor, Low Ceiling: How Public-Sector Wage Compression Erodes Public Service

In 2023, the median state and local government worker in Michigan earned $32.23 an hour against $28.48 in the private sector, a gap of +13%. At the 90th percentile the government wage was $53.72 against $64.47 privately (-17%). Both figures are real hourly wages from the same-state ACS sample, unadjusted for education and experience.

The gap is widest in Healthcare (-5%), Management (+6%), and Skilled trades (+9%), and government pay holds up best in Protective service (+72%) and Education (+25%). That is the national pattern too: a high floor, a low ceiling.

Public vs private pay in Michigan by occupation, 2023

Public vs private median real hourly wage by state and domain. Private comparator is same-state PUMS (place-of-residence). * marks a small unweighted cell in at least one sector; treat those rows as rough. Source: acs_pums.
Occupation domainGovernment median $/hrPrivate median $/hrGap at medianGovernment 90th pctPrivate 90th pctGap at 90th
All occupations$32.23$28.48+13%$53.72$64.47-17%
Admin and clerical$26.86$22.56+19%$41.07$40.83+1%
Education$32.23$25.79+25%$48.35$50.71-5%
Engineering *$53.72$51.58+4%$66.30$77.48-14%
Finance *$36.81$38.68-5%$65.01$83.32-22%
Healthcare$36.67$38.68-5%$113.68$76.40+49%
Legal *$49.43$40.72+21%$85.59$123.98-31%
Management$45.63$42.98+6%$68.77$94.40-27%
Protective service$33.95$19.73+72%$53.72$39.53+36%
Skilled trades$31.16$28.65+9%$48.03$50.15-4%
Software and IT *$37.61$48.35-22%$64.79$75.27-14%

How to read this

Raw medians compare different people: government employs more teachers, nurses, and degree-holders than the private sector does. The parent piece adjusts for education and experience nationally (federal pay 7% above comparable private workers, state pay 17% below, local pay 17% below) and shows the gap opening at the top of the ladder, where private pay in software, law, finance, and engineering has pulled away. This state table is the unadjusted view; the methodology appendix explains both.

Sources

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