Uncle Sam is Hiring
Sunday, June 6th, 2010Apparently, the road to economic recovery runs through Washington, D.C. The federal government seems to be the only recipient of the “quick jolt” promised by Barack Obama and the leading Democrats in Congress. According to the Associated Press, the latest employment figures show that 390,000 government jobs were added in May, aided by temporary Census-related positions. This number far exceeds the 41,000 private sector jobs added during the same period. Furthermore, there were 35,000 jobs lost in the construction industry, 12,000 jobs lost in financial services, and 6,600 jobs lost in retail trade.
Is this what economic recovery is all about? The White House can try to take credit for some uptick in job creation, but the fact remains that the government is adding jobs at the expense of most other industries. It is also true that both the percentage increase in unemployment, and the length of time from peak employment, surpass those from every recessionary period since World War 2.
McClatchy Newspapers reports that the full-time federal civilian work force (except postal workers) is expected to top 2.1 million in fiscal year 2010. More than 560,000 new workers will be hired in the next four years. Moreover, average compensation for federal civilian workers increased nearly twice as much as for the private sector from 2000 to 2008. Their average annual compensation is $119,982, including earnings and benefits. This ranks federal civilian workers seventh among 72 occupation categories, behind only high finance, energy and company management professions.
The problem is, 98 percent of working Americans are not federal employees. While many people keep losing their jobs—incidentally, another manufacturer here in southwest Ohio closed, putting 57 folks out of work—there is a growing number of people who wonder why the government isn’t cutting back like every other employer.
The answer is relatively simple. The government keeps expanding because it keeps adding layer upon layer of services and programs, with commensurate increases in federal bureaucracy. It will soon get to the point at which our economy will grind to a halt under all of the new taxes, laws, and regulations. Companies trying to conduct business here at home will soon find an economic climate favoring government oversight instead of productivity. We may, by the end of Obama’s first (and hopefully only) term, revisit the economic malaise brought on by the Carter administration: double digit unemployment, high inflation, and escalating interest rates. Even if inflation and interest rates never reach those levels, economists aren’t expecting the job market to reach pre-recession hiring levels until 2015.
It comes down to this: if you want to prosper, get a job working for Uncle Sam. Otherwise, get ready for an extended rough ride.