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There are two major elements to look at when examining a state’s state and local government workforce—the number of employees and the level of their pay. In this analysis, each element is measured relative to the national average and summed together to obtain an overall measure of workforce productivity. Based on this state and local government workforce productivity index, Hawaii has the fifth least productive state and local government workforce in the country.
As shown in Chart 1, for state and local government employment in 2016, Hawaii employed 17.6 employees for every 100 employees in the private sector (employment ratio) which is above the national average of 15.7 and is 19th highest ratio in the country.
In 2016, #Hawaii state & local #government employed 17.6 for every 100 employed in private sector—the 19th highest ratio in the country and above the US average of 15.7 http://bit.ly/2BDEhpN @keypolicydata #HIleg #HIgov (click to tweet)
Additionally, Hawaii’s employment ratio has been increasing. As shown in Chart 2, between 1969 and 2016, the employment ratio grew by 6 percent to 17.6 in 2016 from 16.6 in 1969. This is above the national average which increased by 2 percent to 15.7 in 2016 from 15.4 in 1969.
As shown in Chart 3, for state and local government compensation in 2016, Hawaii government employees earning 30 percent more than those in the private sector (compensation ratio) which is 119 percent higher than the national average of 14 percent and is the 5th highest compensation ratio in the country.
In 2016, #Hawaii state & local #government compensation was 30% higher than in the private sector—the 5th highest ratio in the country and 147% above US average of 14% http://bit.ly/2BDEhpN @keypolicydata #HIleg #HIgov (click to tweet)
Additionally, Hawaii’s compensation ratio has been increasing. As shown in Chart 4, between 1969 and 2016, the compensation ratio increased by 7 percentage points to 30 percent in 2016 from 23 percent in 1969. This is a significantly faster growth rate than the national average which increased by 15 percentage points to 14 percent in 2016 from -1 percent in 1969.
As shown in Chart 5, it is state and local wages and salaries that are responsible for Hawaii’s high government compensation ratio. For state and local wages and salaries in 2016, Hawaii employees earn 11 percent more than those in the private sector which is the 3rd highest wages and salaries ratio in the country and significantly higher than the national average of -8 percent.
For state and local benefits in 2016, Hawaii employees earn 115 percent more than those in the private sector which is -10 percent below than the national average of 127 percent and is the 16th highest benefit ratio in the country.
Of course, efficiency for local government helps to be measured on a more local scale. As such, we have also calculated the employment and compensations ratios of local government workers for every county in Hawaii.
The Hawaii local government employment ratios are (state average is 3.6, ranked from highest to lowest):
The Hawaii local government compensation ratios are (state average is 58 percent, ranked highest to lowest):
Overall, it is Hawaii’s high compensation ratio, driven by wages and salaries, that is the primary reason for Hawaii having the 5th worst state and local government workforce productivity index.
Finally, don’t forget to watch our exclusive time-lapse video of our state and local government workforce productivity index over the last 47 years! See if your state has been above or below the national average?