New data on worker pay in the government and private sector has been released by the Bureau of Economic Analysis. There is good news: the pace of federal pay increases slowed during 2015, while the pace of private‐​sector pay increases picked up.


After increasing 3.9 percent in 2014, average compensation for federal government civilian workers increased 1.9 percent in 2015. Meanwhile, average private‐​sector compensation increased 1.4 percent in 2014, but then sped up to a 3.8 percent increase in 2015.


Private workers thus closed the pay gap a little with federal workers in 2015, but there is a lot of catch up to do. In 2015 federal workers had average compensation (wages plus benefits) of $123,160, which was 76 percent higher than the private‐​sector average of $69,901. This essay examines the data in more detail.


Average federal compensation grew much faster than average private‐​sector compensation during the 1990s and 2000s. But the figure shows that federal increases have roughly equaled private‐​sector increases since 2010. President Obama modestly reined in federal pay increases after the spendthrift Bush years. Will the next president continue the restraint?



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For background on federal pay issues and the BEA data, see here.