Bank Of Baku

Federal workers cool to freeze

Federal workers cool to freeze
# 30 November 2010 10:01 (UTC +04:00)
Baku - APA-Economics. A two-year freeze of pay in federal government will make a small dent ($5 billion) in the nation’s deficit. But what President Barack Obama’s announcement will really accomplish is sending a message to the private sector: Government is sharing in the sacrifice, Anderson Independent Mail reported.

And, in these days of displeasure with government, it’s a good marketing move.

Although some studies will claim that federal workers make twice what their counterparts in the private sector bring in, comparing those salaries is the proverbial apples and oranges. The higher paid employees in both generally have heavier responsibilities and the jobs require more education.

Salary comparisons are always debatable, even comparing within the private sector. A reporter in Anderson, S.C., will make considerably less than a reporter in Atlanta, Ga., and it has little to do with talent or bigger employer pockets. It’s the going rate, based on the cost of living and doing business in a metropolitan area.

Even if federal employees do make higher salaries, one has to consider that many of those salaries are earned in one of the nation’s most expensive cities. The cost of living in Washington is higher than the national average.

But benefits are higher at the federal level and, while federal employees are also subject to layoffs –– and, at the highest levels, political upheaval –– their jobs are nowhere near as precarious as jobs in the private sector.
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