Government employment in the United States has surpassed Florida’s population, raising questions about economic impacts and workforce dynamics.
At a Glance
- Government employees in the U.S. reached 23,421,000 in September 2023, exceeding Florida’s population of 22,610,726.
- Government workers now comprise 14.7% of the total non-farm workforce.
- State and local government employment levels have hit all-time highs.
- Government spending increased from $5.7809 trillion in fiscal 2015 to $9.0129 trillion in fiscal 2023.
- Florida’s economy continues to outpace national growth rates in various sectors.
Record-Breaking Government Employment
The United States has reached a significant milestone in government employment, with the number of government workers surpassing the population of Florida, the nation’s third-largest state. As of September 2023, government employees totaled 23,421,000, while Florida’s population stood at 22,610,726 in July 2023. This unprecedented level of government employment accounts for 14.7% of the total non-farm workforce in the country.
Government Employees Exceed Population of Floridahttps://t.co/GQ1QxLDm2g
— vannschaffner (@vannschaffner) October 9, 2024
The surge in government employment is particularly notable at the state and local levels, which have reached all-time highs. Local government employment alone includes 8,139,700 workers in education and 6,799,500 in non-education roles. While the number of government employees has increased since 1979, it’s worth noting that the percentage of the workforce they represent has actually decreased compared to previous peaks.
There were 15.3 million government employees in a defined benefit pension plan in 2023.#CensusEconData estimates that 4,570 state & local government defined benefit pension plans held cash and investments totaling $5.52 trillion in 2023.https://t.co/tlbWw3Ykuo pic.twitter.com/zpqZAYopHe
— U.S. Census Bureau (@uscensusbureau) June 13, 2024
Economic Implications of Expanding Government Workforce
The growth in government employment coincides with a significant increase in government spending. From fiscal year 2015 to 2023, government expenditures rose from $5.7809 trillion to $9.0129 trillion. This substantial increase in both employment and spending raises questions about the long-term economic sustainability and potential impacts on the private sector.
While government employment expands, it’s crucial to consider the broader economic context, particularly in states like Florida that are experiencing robust growth. Florida’s economy has been outpacing national averages in several key areas, potentially offering insights into alternative approaches to economic development and job creation.
Florida’s Economic Performance
Despite the national trend of increasing government employment, Florida’s economy presents a contrasting picture of private sector-led growth. In January 2024, Florida’s private sector job growth rate increased by 0.4%, double the national rate. The state’s labor force grew by 2.2% over the year, also surpassing the national growth rate.
Florida’s economic success extends beyond job growth. The state is creating one in every 11 new U.S. jobs and adding approximately 750 net new residents daily. It ranks 4th in the nation for tech jobs and 14th for R&D funding, indicating a diversified and innovation-driven economy. However, challenges remain, such as a tight labor market where 93 people are looking for work for every 100 open jobs, highlighting a potential skills gap.
Balancing Public and Private Sector Growth
The contrast between the national trend of expanding government employment and Florida’s private sector-led growth raises important questions about the optimal balance between public and private sector job creation. While government employment plays a crucial role in providing essential services, an over-reliance on public sector jobs may potentially crowd out private sector growth and innovation.
As policymakers navigate these complex economic dynamics, they must consider the long-term implications of government workforce expansion, including its impact on fiscal sustainability, economic competitiveness, and overall economic health. The example of states like Florida, which have focused on creating a business-friendly environment to drive private sector growth, may offer valuable lessons for achieving a more balanced and sustainable economic model.
