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, Texas has the eighth most productive state and local government workforce in the country.
In 2016, #Texas had the 8th most productive state and local #government workforce in the country http://bit.ly/2BDEhpN @keypolicydata #TXpolitics #TXpol #TXleg #TXsen #TXgov (click to tweet)
As shown in Chart 1, for state and local government employment in 2016, Texas employed 16.2 employees for every 100 employees in the private sector (employment ratio) which is 3 percent above the national average of 15.7 and is the 25th lowest ratio in the country.
In 2016, #Texas state & local #government employed 16.2 for every 100 employed in private sector—the 25th lowest ratio in the country and 3% above US average of 15.7 http://bit.ly/2BDEhpN @keypolicydata #TXpolitics #TXpol #TXleg #TXsen #TXgov (click to tweet)
Additionally, Texas’s employment ratio has been increasing. As shown in Chart 2, between 1969 and 2016, the employment ratio increased by 7 percent to 16.2 in 2016 from 15.2 in 1969. This is a faster growth rate than 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, Texas government employees earned 1 percent more than those in the private sector (compensation ratio) which is significantly lower than the national average of 14 percent and is the 7th lowest compensation ratio in the country.
In 2016, #Texas state & local #government compensation was 1% higher than in the private sector—the 7th lowest ratio in the country and well below US average of 14% http://bit.ly/2BDEhpN @keypolicydata #TXpolitics #TXpol #TXleg #TXsen #TXgov (click to tweet)
Additionally, Texas’s compensation ratio has been increasing. As shown in Chart 4, between 1969 and 2016, the compensation ratio increased by 6 percentage points to 1 percent in 2016 from -5 percent in 1969. This is a slower 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, both wages and salaries and benefits contribute to Texas’s low government compensation ratio. For state and local wages and salaries in 2016, Texas employees earn -15 percent less than those in the private sector which is the 8th lowest wages and salaries ratio in the country and significantly lower than the national average of -8 percent.
For state and local benefits in 2016, Texas employees earn 88 percent more than those in the private sector which is -31 percent lower than the national average of 127 percent and is the 14th lowest 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 Texas.
The Texas counties with the highest local government employment ratios include (state average is 12.6):
The Texas counties with the lowest local government employment ratios include (state average is 12.6):
The Texas counties with the highest local government compensation ratios include (state average is -4 percent):
The Texas counties with the lowest local government compensation ratios include (state average is -4 percent):
Overall, it is Texas’s low compensation ratio, driven by both low wages and salaries and benefits, that is responsible for Texas having the 8th best state and local government workforce productivity index.
Read more about the "government workforce productivity Index" methodology here.
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?
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.