Statistics gathered in September 2007 by the Employee Benefit Research Institute (EBRI) show that state and local government spends more on employee benefit programs than the private-sector.


In September of 2007, benefit spending for the private sector was $7.66 per employee per hour worked, while in state and local government programs it was $13.24. In providing voluntary benefits of heathcare and retirement savings, the private sector spent only $1.85 and 92 cents, respectively, while the state and local sector spent $4.35 and $3.04.


The report attributed differences in workforce composition and nature of work to be the major divergence in public versus private benefit spending. Public employees typically work in education and public safety, which require physical fitness, high levels of education and risk—characteristics not all present in the private sector.

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