Public vs private pay · New Jersey

Public vs private sector pay in New Jersey 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 New Jersey earned $40.29 an hour against $37.61 in the private sector, a gap of +7%. At the 90th percentile the government wage was $69.84 against $96.70 privately (-28%). Both figures are real hourly wages from the same-state ACS sample, unadjusted for education and experience.

The gap is widest in Software and IT (-28%), Legal (-15%), and Healthcare (-6%), and government pay holds up best in Protective service (+87%) and Education (+42%). That is the national pattern too: a high floor, a low ceiling.

Public vs private pay in New Jersey 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$40.29$37.61+7%$69.84$96.70-28%
Admin and clerical$29.26$26.86+9%$49.26$53.72-8%
Education$39.91$28.18+42%$58.56$53.72+9%
Engineering *$55.34$54.76+1%$80.59$107.45-25%
Finance *$53.25$53.72-1%$101.65$143.27-29%
Healthcare$45.44$48.35-6%$81.52$93.84-13%
Legal$54.71$64.47-15%$94.02$171.92-45%
Management$53.72$56.51-5%$85.96$128.94-33%
Protective service$48.35$25.79+87%$80.59$64.50+25%
Skilled trades$32.23$33.31-3%$58.59$63.40-8%
Software and IT$46.20$64.47-28%$89.46$110.22-19%

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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