K-12 Tax & Spending Climate: Public Sector Pay Outpaces Private Pay

Mike Mandel, via a kind reader:


The top line tracks the real compensation of all state and local government workers-wages and benefits, adjusted for inflation. The lower line tracks the real compensation of all private sector workers. The data comes from the Employment Cost Index data published by the BLS.
The chart shows that public and private sector pay rose in parallel from 2001 to 2004. Then the lines diverged. Since early 2005, public sector pay has risen by 5% in real terms. Meanwhile, private sector pay has been flat.