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Alaska’s State and Local Government Workforce is the Second “Least Productive” in 2016

Dec 05, 2017


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, Alaska has the second least productive state and local government workforce in the country.

 

Click here to view our full government workforce data app with details by state, by county, level of government, and over time.

 

 

In 2016, #Alaska had the second least productive state and local #government workforce in the country http://bit.ly/2BDEhpN  @keypolicydata #AKleg #AKgov #AKpol #AKsenate (click to tweet)

 

As shown in Chart 1, for state and local government employment in 2016, Alaska employed 24.5 employees for every 100 employees in the private sector (employment ratio) which is 56 percent above the national average of 15.7 and is third highest ratio in the country.

 

 Chart 1 Alaska State and Local Government Employees per 100 Private Sector Employees Rank 2016.jpg

 

In 2016, #Alaska state & local #government employed 24.5 for every 100 employed in private sector—the third highest ratio in the country and 56 percent above US average http://bit.ly/2BDEhpN  @keypolicydata #AKleg #AKgov #AKpol #AKsenate (click to tweet)

 

Additionally, Alaska’s employment ratio has been declining. As shown in Chart 2, between 1969 and 2016, the employment ratio fell by -13 percent to 24.5 in 2016 from 28.2 in 1969. This is in contrast to the national average which increased by 2 percent to 15.7 in 2016 from 15.4 in 1969.

 

 Chart 2 Alaska State and Local Employment Ratio vs. U.S. Average 1969 to 2016.JPG

 

As shown in Chart 3, for state and local government compensation in 2016, Alaska government employees earning 39 percent more than those in the private sector (compensation ratio) which is 189 percent higher than the national average of 14 percent and is the 2nd highest compensation ratio in the country.

 

 Chart 3 Alaska State and Local Government Compensation as a Percent of the Private Sector Rank 2016.jpg

 

In 2016, #Alaska state & local #government #compensation was 39% higher than in the private sector—the 2nd highest ratio in the country and 189 percent above US average http://bit.ly/2BDEhpN  @keypolicydata #AKleg #AKgov #AKpol #AKsenate (click to tweet)

 

 

Click here to view our full government workforce data app with details by state, by county, level of government, and over time.

 

Additionally, Alaska’s compensation ratio has been increasing. As shown in Chart 4, between 1969 and 2016, the compensation ratio increased by 45 percentage points to 39 percent in 2016 from -6 percent in 1969. This is a faster growth rate than the national average which increased by 15 percentage points to 14 percent in 2016 from -1 percent in 1969.

 

 Chart 4 Alaska State and Local Compensation Ratio vs. U.S. Average 1969 to 2016.JPG 

 

As shown in Chart 5, both wages and salaries and benefits contribute to Alaska’s high government compensation ratio. For state and local wages and salaries in 2016, Alaska employees earn 5 percent more than those in the private sector which is the 4th highest wages and salaries ratio in the country and significantly higher than the national average of -8 percent.

 

 Chart 5 Alaska Components of State and Local Compensation Ratio 1969 to 2016.JPG

 

For state and local benefits in 2016, Alaska employees earn 188 percent more than those in the private sector which is 48 percent higher than the national average of 127 percent and is the 4th highest benefit ratio in the country.

 

Overall, Alaska has the second worst state and local government workforce productivity index in the country because of both a high employment ratio and a high compensation ratio.

 

Read more about the "government workforce productivity Index" methodology here.

 

Click here to view our full government workforce data app with details by state, by county, level of government, and over time.

 

 

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?

 

 



J. Scott Moody

Scott has nearly 20 years of experience as a public policy economist. He is the author, co-author and editor of over 180 studies and books. His professional experience also includes positions at the American Conservative Union Foundation, Granite Institute, Federalism In Action, Maine Heritage Policy Center, Tax Foundation, and Heritage Foundation.


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