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Indiana’s State and Local Government Workforce is the “Most 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, Indiana has the most 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, #Indiana had the most productive state and local #government workforce in the country http://bit.ly/2BDEhpN  @keypolicydata #INlegis #INsen #INgov (click to tweet)

 

As shown in Chart 1, for state and local government employment in 2016, Indiana employed 14.3 employees for every 100 employees in the private sector (employment ratio) which is -9 percent below the national average of 15.7 and is the 8th lowest ratio in the country.

 

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

 

In 2016, #Indiana state & local #government employed 14.3 for every 100 employed in private sector—the 8th lowest ratio in the country and -9 percent below US average http://bit.ly/2BDEhpN  @keypolicydata #INlegis #INsen #INgov (click to tweet)

 

Additionally, Indiana’s employment ratio has been increasing. As shown in Chart 2, between 1969 and 2016, the employment ratio increased by 9 percent to 14.2 in 2016 from 13.1 in 1969. This increase was faster than the national average which increased by 2 percent to 15.7 in 2016 from 15.4 in 1969.

 

 Chart 2 Indiana 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, government employees earned -3 percent less than those in the private sector (compensation ratio) which is significantly lower than the national average of 14 percent and is the 4th lowest compensation ratio in the country.

 

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

 

In 2016, #Indiana state & local #government compensation was -3% lower than in the private sector—the 4th lowest ratio in the country and well below US average http://bit.ly/2BDEhpN  @keypolicydata #INlegis #INsen #INgov (click to tweet)

 

Additionally, Indiana’s compensation ratio has been increasing. As shown in Chart 4, between 1969 and 2016, the compensation ratio increased by 12 percentage points to -3 percent in 2016 from -15 percent in 1969. This is a slower increase relative to the national average which increased by 15 percentage points to 14 percent in 2016 from -1 percent in 1969.

 

  Chart 4 Indiana 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 Indiana’s low government compensation ratio. For state and local wages and salaries in 2016, Indiana employees earn -14 percent less than those in the private sector which is the 10th lowest wages and salaries ratio in the country and significantly lower than the national average of -8 percent.

 

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

 

For state and local benefits in 2016, Indiana employees earn 45 percent more than those in the private sector which is -65 percent lower than the national average of 127 percent and is the 2nd lowest benefit ratio 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.

 

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 Indiana.

 

The Indiana counties with the highest local government employment ratios include:

  • Union County, IN (38.4)
  • Benton County, IN (32.2)
  • Greene County, IN (32.1)
  • Crawford County, IN (29.3)
  • Ohio County, IN (28.5)
  • Pulaski County, IN (28.3)
  • Henry County, IN (28.1)
  • Warren County, IN (27.7)
  • Parke County, IN (26.3)
  • Sullivan County, IN (26.0)

The Indiana counties with the lowest local government employment ratios include:

  • Steuben County, IN (8.3)
  • Kosciusko County, IN (8.1)
  • Tippecanoe County, IN (8.0)
  • Clark County, IN              (7.4)
  • Allen County, IN (7.1)
  • Dubois County, IN (7.0)
  • Elkhart County, IN (6.6)
  • Gibson County, IN (6.5)
  • Marion County, IN (6.3)
  • Vanderburgh County, IN (6.2)

The Indiana counties with the highest local government compensation ratios include:

  • Hendricks County, IN (36 percent)
  • Brown County, IN (36 percent)
  • Floyd County, IN (30 percent)
  • Delaware County, IN (29 percent)
  • Dearborn County, IN (26 percent)
  • Henry County, IN (25 percent)
  • Daviess County, IN (21 percent)
  • Boone County, IN (19 percent)
  • Cass County, IN (19 percent)
  • Greene County, IN (18 percent)

The Indiana counties with the lowest local government compensation ratios include:

  • Tipton County, IN (-17 percent)
  • Ripley County, IN (-21 percent)
  • Warren County, IN (-24 percent)
  • Owen County, IN (-24 percent)
  • Martin County, IN (-25 percent)
  • Kosciusko County, IN (-25 percent)
  • Gibson County, IN (-31 percent)
  • Vermillion County, IN (-31 percent)
  • Pike County, IN (-36 percent)
  • Posey County, IN (-38 percent)

 

Overall, it is both Indiana’s low employment ratio and low compensation ratio, driven by both low wages and salaries and benefits, that is responsible for Indiana having the best state and local government workforce productivity index.

 

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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