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2/11/25, 2:21 PMThe State of Public Sector Employment and Unionization in the U.S.

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The State of Public Sector Employment and Unionization in the U.S. An analysis of Bureau of Labor Statistics data

SEP 25, 2024

2 Share

Since 2020, public sector employment has been on the rise, exceeding pre-pandemic levels for the <rst time in 2023. The union membership rate of government employees continues to be far greater than that of other workers: last year, 32.5 percent of public sector workers were in a union as opposed to 6.0 percent of those in the private sector. However, the addition of new jobs coincides with dropping public sector union density over the past decade.

Although many government employees already have access to unconventional bene<ts such as student loan forgiveness and Hexible work schedules (along with generous health insurance and retirement plans), unionized government workers experience better pay and bene<ts than their nonunion counterparts. Pandemic-era funding sources are coming to an end, and though much of this funding was used for one-time expenditures, state and local governments especially will be operating on tighter budgets than in previous years. Developing stronger unions in the public sector will be a key step in preventing layoNs and protecting the security oNered by jobs in public service.

JULIA TACHE

2

How Many Public Sector Workers Are There?

2/11/25, 2:21 PMThe State of Public Sector Employment and Unionization in the U.S.

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Over 23 million people were employed by federal, state, and local governments by the end of 2023, surpassing 22.9 million in February of 2020 and accounting for nearly 15 percent of U.S. employment. Although growth in most sectors has slowed, employment increased in the public sector in 2023 by a greater amount than in 2022 (709,000 jobs added compared to 299,000). Job gains were led by local governments, which added 351,000 jobs last year. Preliminary numbers for August 2024 indicate that the public sector has added 263,000 people to the payroll this year so far, totaling 23.3 million.

As hiring cooled in other areas, government sectors may have been able to hire more workers who would have previously opted to enter the private sector. Government employment provides bene<ts and security typically not found in other industries with higher salaries for commensurate positions, a trade-oN more workers seem to be

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willing to make. New initiatives taken on at the federal level in climate, infrastructure, and manufacturing may be luring individuals to take on roles created by new programs as well. Despite increases in government employment, many vacancies remain un<lled especially at the state and local level, impacting the ability of public service workers to carry out their operations.

Median national annual salaries of federal, state, and local government workers in 2022 (in 2024 dollars) were $81,670, $58,548, and $58,335, respectively, according to an analysis of Current Population’s Survey (CPS) Annual Social and Economic Supplement data. Segmenting employment sectors by race using CPS monthly data shows that a larger share of Black workers are employed by the public sector compared

Public Sector Worker Characteristics

ThepublicsectorhasthehighestshareofBlackworkers Percentageofworkersinsectorofemployment,byrace(2023)

Nonprofit PublicSector PrivateSector

78.3%

White 14.4% 7.3%

75.1% Black 17.7%

7.2%

81.7% Asian/PacificIslander 11.5%

6.8%

85•4%

Hispanic 10.3% 4-3%

77.6%

TwoorMoreRaces/Other 15% 7.4%

Author'sAnalysisofCurrentPopulationSurvey(CPS)dataaccessedthroughIPUMS|github:julia-tache

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to other races. As the Center for Economic and Policy Research noted, government professions have been an important source of economic mobility for Black workers in particular. Women are also more highly represented in the public versus private sector and make up almost 57 percent of public sector jobs.

About a third of public sector jobs oNer workers added stability and bargaining power through union representation. Unions that represent federal workers include the American Federation of Government Employees and the National Treasury Employees Union while state and local workers may be represented by the American Federation of State, County and Municipal Employees, the International Federation of Professional and Technical Engineers, the International Brotherhood of Teamsters,

2/11/25, 2:21 PMThe State of Public Sector Employment and Unionization in the U.S.

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and other groups. Local government jobs including teachers and <re<ghters tend to be highly unionized with 38.3 percent of these workers represented by a union in 2023.

While public sector hiring is on an upward trend, the share of workers covered by a union has been declining at all government levels. Unionization rates for all government workers decreased by 3.2 percent from 2014 to 2023. Certain barriers to unionization include state “right-to-work” laws and challenges independent contractors face in joining bargaining units. Along with solid bene<ts already oNered by government employment, union membership provides workers with tangible advantages.

Public Sector Union Benefits

2/11/25, 2:21 PMThe State of Public Sector Employment and Unionization in the U.S.

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Public service unions have been instrumental in helping workers secure better wages and fringe bene<ts. On average, public sector employees who are a member or at least covered by a union earned 18 percent more than those who were not union members (according to 2017-2022 data). A larger proportion of union members were part of a pension plan, with 71.1 percent of unionized or covered public employees having access to a plan as opposed to just over half of those without a union in 2022. In general, government employers pay a higher percent of health insurance costs than private sector employers. Public sector employees with a union are also more likely to have health insurance premiums paid for in full: 20.8 percent compared to 17.6 percent for nonunion employees in 2022.

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2017

2018

2019

2020

2021

2022

Publicsectorunionmembersaremore likelytobepartofapensionplan Nopensionplan Notincludedinplan Includedinplan

0.00

MemberofUnion/Covered

71.8%

71.7%

71.4%

76.5%

71.9%

71.1%

0.25 0.50

NoUnionCoverage

54.2%

54•3%

54.8%

55%

54%

56.3%

0.500.75 1.000.00 0.25 0.75 1.00

Author'sAnalysisofCurrentPopulationSurvey(CPS)dataaccessedthroughIPUMS

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Employees in public service are more likely to enjoy the bene<ts and protection of a union than those in other sectors. More can be done to support the worker power of federal, state, and local government employees who help build our roads and bridges, distribute <nancial assistance, deliver our mail, and teach our children. Government employees are excluded from the National Labor Relations Act, allowing states to enact laws that prohibit members of the public sector from going on strike. Policy changes at the federal, state, and local levels can help make it easier for these workers to unionize and advocate for improved conditions.

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State and local policymakers can pass reforms to allow all public sector employees to unionize, not just those in certain professions like law enforcement. Statutes preventing unionization such as “right-to-work” laws should be repealed. Direct- bene<t pension coverage, a hallmark of public employment, must also be protected and expanded. Employers could also collaborate with unions to develop training and informational materials on existing bene<ts with the goal of increasing bene<t uptake. Policymakers must also guarantee that any jobs created through government spending should abide by standards such as prevailing wage laws and project labor agreements.

Declining union membership among public sector workers is a threat to the middle class prosperity oNered by government employment. With budgets downsizing, union protections will be crucial in preserving job stability, retention, fair wages, and substantial bene<ts, while granting workers a voice on the job.

Integrated Public Use Microdata Series (IPUMS) Citation: Sarah Flood, Miriam King, Renae Rodgers, Steven Ruggles, J. Robert Warren, Daniel Backman, Annie Chen, Grace Cooper, Stephanie Richards, Megan Schouweiler, and Michael Westberry. IPUMS CPS: Version 11.0 [dataset]. Minneapolis, MN: IPUMS, 2023. https://doi.org/10.18128/D030.V11.0

Code: https://github.com/julia-tache/public_sector_union_eNect

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2/11/25, 2:21 PMThe State of Public Sector Employment and Unionization in the U.S.

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Oct 11

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Adriana Colovai

How does 15% of the labor force being employed by the government in the US compare to other

countries?

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