Public vs private pay · US

Public vs private sector pay in US 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 US earned $32.23 an hour against $30.09 in the private sector, a gap of +7%. At the 90th percentile the government wage was $63.40 against $75.21 privately (-16%). 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 (-18%), Finance (-12%), and Management (-5%), and government pay holds up best in Protective service (+66%) and Education (+14%). That is the national pattern too: a high floor, a low ceiling.

Public vs private pay in US 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$30.09+7%$63.40$75.21-16%
Admin and clerical$26.14$23.64+11%$44.05$42.98+2%
Education$30.09$26.33+14%$52.80$52.650%
Engineering$53.72$53.720%$80.59$96.70-17%
Finance$37.61$42.98-12%$67.16$104.76-36%
Healthcare$40.83$40.59+1%$87.15$88.65-2%
Legal$51.58$51.580%$94.56$181.23-48%
Management$42.98$45.37-5%$77.36$107.45-28%
Protective service$35.69$21.49+66%$64.47$48.89+32%
Skilled trades$30.09$26.86+12%$52.11$51.04+2%
Software and IT$44.05$53.72-18%$74.14$107.45-31%

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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