State-Employee Salaries Rise But Still Trail Private Sector,
Finds Annual AFT Public Employees Compensation Survey
Salary Advance Likely Reflects Better State Finances After Years of Cutbacks

WASHINGTON, D.C.—Salaries for state-employed professionals registered modest to healthy increases from 2006 to 2007, although most state employees still earn far less than their private sector counterparts, according to the 2007 AFT Public Employees Compensation Survey, the only national survey that tracks such trends.

“We still have a long way to go to ensure that all states can recruit and retain skilled professionals for critical public service jobs, but this year’s salary uptick is encouraging,” says Edward J. McElroy, president of the American Federation of Teachers (AFT). “States that are investing in public services and public employees deserve credit for their wise stewardship of public dollars. These investments are the bedrock of safe, healthy and prosperous communities.”

The median increase in average salaries across the 45 jobs surveyed was 5.7 percent from 2006 to 2007, the highest increase recorded in the last five years, the AFT study shows. This faster salary growth likely reflects the fact that state revenues and spending rebounded significantly in the last two fiscal years, allowing states to make up for the deep program cuts enacted during the last national economic downturn.

For example, state general-fund spending grew by 8.7 percent in fiscal year 2006 and by 8.6 percent in fiscal year 2007, according to the National Association of State Budget Officers. In contrast, state spending increased by only 1.3 percent, 0.6 percent and 3 percent in fiscal years 2002, 2003 and 2004 respectively, far below the 29-year historical average of 6.5 percent. It was during these earlier years that many states were forced to slash programs, cut personnel and enact salary freezes.

Some state-employee job titles saw better salary growth than others.  Those showing the greatest increases from 2006 to 2007 were architects (9.4 percent), employee benefits analysts (9.3 percent), geologists (8.9 percent) and correctional officers (8.3 percent). Meanwhile, those seeing the smallest increases included foresters (3.5 percent), biologists (3.6 percent), senior chemists (3.6 percent) and systems analysts (3.6 percent).

Bridge inspectors have received considerable media attention lately in the wake of the tragic bridge collapse in Minnesota. While they saw a solid 6.1 percent salary increase from 2006 to 2007, their salaries have grown a mere 1.1 percent since 2002, the lowest increase recorded for any job title over the 2002-2007 period. 

State-Employee Salaries Still Lag Behind Private Sector
Despite this year’s higher-than-average salary growth, the salaries of most state-employed professionals still trail those of their private sector peers. The AFT study shows that private sector salaries exceed state-employee salaries in 17 of the 20 cases in which job comparisons were made. In six cases (biologist, buyer, chemist, economist, geologist and lawyer), the gap is 50 percent or more. Across all 20 occupations, private sector salaries are, on average, about 30 percent higher than those of state employees.

For the eighth consecutive year, the AFT report finds that collective bargaining is a key factor in reducing the private-public sector salary gap.  For example, buyers in collective-bargaining states earn 20 percent more than their noncollective-bargaining counterparts, chemists earn 19 percent more and accountants earn 17 percent more.  Across all 45 occupations, the collective- bargaining advantage averages about 14 percent.

“We keep hearing that state governments are understaffed, unable to fill key vacancies, or losing skilled employees to the higher-paying private sector,” adds McElroy. “The bottom line is that public structures and services drive our economy and way of life—roads and bridges, water and waste treatment, parks and libraries, public safety and food inspection, the list goes on. To continue to reap the benefits of these services, we must invest in them.”

 The AFT Public Employees Compensation Survey has been published annually since 2000.  The survey examines 45 representative professional job titles, 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. For the fourth year in a row, the survey includes data from all 50 states and the District of Columbia.

The full report, including supplemental tables, can be found at:
www.aft.org/pubemps/pubs-reports/PEcompsurvey07.htm.

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