State Employee Pay Growth Below Inflation Rate for Third Straight Year
Some Positions Show Salary Improvements, Many Others Stagnant,
Seventh Annual AFT Public Employees Compensation Survey Finds

WASHINGTON, D.C. – Salaries for state-employed professionals registered a modest increase over the previous year but still lagged behind the inflation rate, according to the 2006 AFT Public Employees Compensation Survey, the only national survey that tracks such trends. 

"If states are going to attract and retain top professionals for critical state government services, they must pay a competitive wage," said AFT President Edward J. McElroy.  "At a minimum, this means paying salaries that keep pace with inflation and trends in the private sector.  Unfortunately, states appear to be falling short on both counts."

The new report reveals that median salaries across the 45 occupations surveyed increased an average of 2.5 percent from 2005 to 2006, almost a full percentage point below the inflation rate of 3.4 percent for that period. This is the third straight year that the salary increases of state employees failed to keep pace with inflation, indicating a troubling decline in real wages (wages adjusted for inflation).

 The average salary increase was also significantly below the increase in total state general fund spending, which was estimated at 7.6 percent in fiscal year 2006, according to the National Association of State Budget Officers. 

There are some positive results for state employees in the survey. A handful of positions facing shortages or challenging working conditions registered solid salary increases, such as correctional officers (11.2 percent), librarians (6.7 percent), chemists (6.3 percent) and nurses (5.6 percent). 

Yet, as has been the case every year since the survey's inception, this year's edition generally shows a significant private-public sector pay gap. For example, biologists earn an average of $71,718 in the private sector compared to $43,583 in the public sector—a 65 percent differential.  Computer systems analysts earn $77,563 in the private sector compared to $55,800 in the public sector—a 39 percent differential.  And, despite the fact that public sector librarians registered salary increases this year, they still lag their private sector peers by nearly $18,000 ($59,320 vs. $41,481—a 43 percent differential.

One undisputed factor that helps alleviate the private-public sector salary gap is collective bargaining. In the states with collective bargaining rights for public employees, public sector salaries are generally closer to private sector salaries, the report finds for the seventh consecutive year.

"Collective bargaining can help increase salaries, but it also has other important advantages that help attract and retain talented professionals," said Steve Porter, director of AFT Public Employees. "Collective bargaining gives public employees a voice to create better and safer working conditions and to improve the public services they provide. For public employees, the ability to have a say on the job is often as important as salary and benefits."

The AFT Public Employees Compensation Survey has been published annually since 2000.  The survey examines 45 representative job titles with data from 50 states and the District of Columbia, asking states to match the job description provided by AFT Public Employees. This methodology allows for salary comparisons across states for a particular job title, although cost-of-living and other factors should be considered.

"Providing high-quality public services is among the best and most cost-effective investments that taxpayers and governments can make," said McElroy.  "These services are the foundation of our communities, making possible the safe streets, clean air and water, economic development and quality healthcare we all rely on.  Public employees are the people behind these services, and they deserve our full support."

The complete results of the 2006 salary survey can be found on the AFT Web site at: http://www.aft.org/salary/2006/download/PECompSurvey06.pdf. 

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