HALIFAX, Nova Scotia, Oct. 25, 2022 (GLOBE NEWSWIRE) — Government workers take pleasure in a wage premium and extra beneficiant advantages in comparison with comparable personal sector workers, finds a brand new examine revealed by the Fraser Institute, an impartial, non-partisan Canadian public coverage think-tank.
“At a time when governments are facing serious fiscal pressures, bringing government sector compensation in line with the private sector would help reduce costs without necessarily affecting services,” stated Ben Eisen, a senior fellow with the Fraser Institute.
The examine, Comparing Government and Private Sector Compensation in Atlantic Canada, 2021, finds that the wages of presidency staff in Atlantic Canada are 38.0 per cent greater, on common, than wages within the personal sector in 2021, the latest yr of accessible comparable knowledge from Statistics Canada’s Labour Force Survey.
After adjusting for variations resembling age, gender, training, tenure, kind of labor, trade, and occupation, authorities staff are nonetheless paid 11.9 per cent greater wages (7.2 per cent when unionization is taken into consideration).
But wages are solely a part of general compensation. Government workers across Atlantic Canada take pleasure in extra beneficiant non-wage advantages, too.
- Pensions: Public-sector workers in all Atlantic provinces are more likely to be lined by a registered pension plan (RPP): fewer than 30 per cent of private-sector workers have been lined by an RPP in 2021 in comparison with greater than 70 per cent of workers within the public sector. Of these lined by an RPP, the share of outlined profit pension is way greater within the public sector than the personal sector in all Atlantic provinces besides New Brunswick.
- Early retirement: Government workers in Atlantic Canada retired between 3.0 years (Nova Scotia) and 4.4 years (Newfoundland & Labrador) earlier on common than their private-sector counterparts.
- Personal go away: In 2021, full-time workers within the authorities sector have been absent from their jobs for private causes extra on common (15.2 days to 16.5 days) than personal sector workers (9.3 to 11.3 days).
- Job safety: The charge of job loss was additionally decrease in all 4 Atlantic provinces’ public sector (from 0.6 to 1.1 per cent) than their personal sectors (from 4.2 to 7.8 per cent).
“It’s important that all levels of government in Canada—municipal, provincial and federal—continuously review expenditures with an eye to producing better value-for-money to taxpayers,” Eisen stated.
“Closing the compensation gap in Atlantic Canada between the government and private sectors would reduce costs and can help ensure the long-term sustainability of government finances.”
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Ben Eisen, Senior Fellow
Fraser Institute
Alex Whalen, Senior Economist
Fraser Institute
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The Fraser Institute is an impartial Canadian public coverage analysis and academic group with places of work in Vancouver, Calgary, Toronto, and Montreal and ties to a world community of think-tanks in 87 international locations. Its mission is to measure, examine, and talk the impression of aggressive markets and authorities intervention on the welfare of people. To defend the Institute’s independence, it doesn’t settle for grants from governments or contracts for analysis. Visit fraserinstitute.org
