Garden State Initiative on Thursday analyzed the latest employee compensation data from the U.S. Bureau of Labor Statistics and found major differences in compensation costs between the public and private sectors.
In particular, GSI said government costs for pensions and medical benefits far exceeded the private sector, especially when looking at how New Jersey spends. The analysis said there’s a 50% differential in cost between the state and the rest of the U.S.
“As policymakers in Trenton debate modernizing public employee benefits, having a firm grasp of the facts over political rhetoric is essential” Regina M. Egea, president, GSI, said. “This data laden analysis clearly shows that the cost of public employee benefits in New Jersey far-exceeds those of other state government entities, let alone private sector employers. Any unwillingness to adapt New Jersey to the market realities of what it takes to compete with other states for jobs and residents just inhibits the growth of our economy. New Jersey must significantly lower the cost of benefits of its public workforce if we are serious about attracting and retaining jobs.”
Read the full report here.