Two weeks ago we observed that as private sector wage growth was slowing sharply, government worker wage growth had just hit a new all time high and was gingerly moving ever higher.
Someone tell the MMT lunatics on CNBC what "the debt is buying": the highest government wage growth on record as private sector wage growth collapses pic.twitter.com/lGTl3MyKO0
— zerohedge (@zerohedge) February 28, 2024
Picking up on this topic, Mish Shedlock writes that the BLS released its employer costs report for the 4th quarter of 2023. He investigates how much state and local government workers make compared to private industry workers.
Information from the BLS report on Employer Costs.
The Employer Costs for Employee Compensation (ECEC) measures the average employer cost per employee hour worked for total compensation, wages and salaries, and benefits, and costs as a percent of total compensation. These data are collected through the National Compensation Survey (NCS) and provide information about average compensation in the economy at a point in time.
Employer Costs $ Per Hour Comparison
- State and local government worker’s total compensation is $60.56 compared to $43.11 for private industry.
- State and local government worker’s salary is $37.53 compared to $30.33 for private industry.
- State and local government worker’s benefits are $23.03 compared to $12.77 for private industry.
Employer Costs Percentage Comparison
- State and local government worker’s total compensation is 40.5 percent higher than private industry.
- State and local government worker’s salary is 23.7 percent higher than private industry.
- State and local government worker’s benefits are 80.3 percent higher than private industry.
Employer Costs Per Hour Private Industry 2023 Q4
Private Employer Costs Table
Where to Seek and Avoid Employment
- If you can get a job in government, go for it. But that does assume your city or local government will not go bankrupt with benefits slashed. So, think carefully about those promised benefits, 80.3 percent higher than private industry.
- Financial activities and information are high on the list but so are utilities. The latter is likely due to monopolies and/or government ties.
- Avoid if you can Leisure and Hospitality, especially fast food restaurants. But that is likely the only option for high school kids (except those whose parents are in government jobs and able to get high paying summer jobs for their kids. Clout matters).
- Also wait staff at upscale restaurants likely do pretty well, but local dive restaurants, not so well.
Minimum Wage for Fast Food Workers
On September 28, 2023, Mish reported Minimum Wage for Fast Food Workers Jumps 30% to $20 Per Hour in California
When it takes effect on April 1, fast food workers in California will have among the highest minimum wages in the country, according to data compiled by the University of California-Berkeley Center for Labor Research and Education. The state’s minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.
Cheering fast food workers and labor leaders gathered around Newsom as he signed the bill at an event in Los Angeles. “This is a big deal,” Newsom said.
The $20 minimum wage is just a starting point. The law creates a fast food council that has the power to increase that wage each year through 2029 by 3.5% or the change in averages for the U.S. Consumer Price Index for urban wage earners and clerical workers, whichever is lower.
California Lead the Nation
More inflation is coming your way. California leads the way. Expect unemployment in California will rise.
Metropolitan Areas Unemployment Rate
The BLS metro report released today. Unemployment rates were up in 218 of 389 metro areas. Nonfarm employment only rose in 59 areas.
For discussion, please see Unemployment Rates Rose in 218 of the 389 Metropolitan Areas
California lead the nation in minimum wages and the unemployment rate. Who could have guessed that?
A Blue State Exodus
California is not always number one. In terms of numbers fleeing the state, it is a very respectable #2. Well, I’m sure it can try harder. For discussion, please see A Blue State Exodus: Who Can Afford to Be a Liberal?
The top exodus states are New York, California, Hawaii, Alaska, and Illinois. Note that Illinois is also #7 in highest unemployment rate.
And as long as we are trashing Illinois, please note the Chicago Teachers’ Union Seeks $50 Billion Despite $700 Million City Deficit
Returning to California, the Cost of Running a McDonalds Jumps $250,000 in CA Due to Minimum Wage Hikes
California is highly dependent on technology stock options and payrolls. Yet, with the economy allegedly booming, and the stock market at an all time high, California faces a $73 billion deficit.
