(Editor's note: This article contains a correction to the version originally published. The decline in private-sector employees' compensation is now correctly stated as 5.1 percent.)

Spokespersons for Michigan government employee unions contend that they have given up hundreds of millions of dollars in wages and benefit concessions over the past few years. The claims are in dispute, and data from the U.S. Bureau of Economic Analysis offers some support for those challenging them. It shows that since 2000, government-employee compensation in Michigan has increased 11.4 percent, while private-sector employees are getting 5.1 percent less.

Government and Private Sector Compensation in Michigan, 2000-2009

Stay Engaged

Receive our weekly emails!

The trend continued in 2009. Average compensation per employee — which includes the value of benefits — was down 2.0 percent for private sector employees but increased 3.6 percent for Michigan's state and local government employees.

Overall, the total amount spent statewide on private-sector compensation, as opposed to the average compensation per worker, was 10.2 percent lower in 2009, while total state and local government compensation increased 2.6 percent. This reflects the contraction of the Michigan private sector workforce last year, as well as the lower level of compensation per worker.


Related Articles:

Legacy Society Luncheon: The Morality of Capitalism

Legacy Society

WikiLeaks: Granholm's Obama Job Application Oversold Clean Energy Jobs

RTA Transit Tax Focuses on Old Technology, Ignores Opportunity

October 21, 2016 MichiganVotes Weekly Roll Call Report

Tilt from Tax Cutting to Corporate Welfare Renews Failed Approach to Economic Growth

Stay Engaged

Simply enter your email below to receive our weekly email:


Jim Riley got his own fiscal house in order so he could retire. Now he wonders why his city government can’t do the same for their employees, and taxpayers who could end with huge bills from the unfunded retirement liabilities.

Related Sites