Looking for work? Try Uncle Sam
A former colleague who was let go from a large financial institution recently called. I thought they wanted to ask whether I knew of any opportunities in the industry. But instead, they're considering applying to the Federal government for a job.
The federal government is hiring. In fact, they've increased their employees by 15.6%. In a down market, with and average 600,000 people losing their jobs every month, this is a big, BIG number. Even if you back out the temporary hires for the census (one is due in 2010), there is still a net gain of 2%.
Average salary? $75,419 - up from $72,800 last year. (All stats courtesy of CBS Econowatch.)
One part of me thinks: how nice; people are losing their jobs and the government's picking up the slack. Or, gosh, college grads can get gainful employment instead of moping around the house this summer.
But the other part knows that government employment means bigger government payrolls, bigger bureaucracy, none of which actually produces anything in our economy. Yes, more employed people making money means more money to spend. But guess what? Consumer spending is declining. So any gain is being muted by the trend in reduced spending.
And for those who are hired and spend their careers in government, there's the pension benefits that must be paid out from - right, our tax dollars. With all the contingent liabilities the government has teed up for our future, add this one.
And to the extent our resources are directed to paying for more government employees and their (rather generous) benefit and pension packages, fewer resources are directed to economic growth. (The government doesn't "produce" anything.)
Oh, and to the extent that our economy is shrinking (in a recession, the economy shrinks) and the government grows, that's a kind of double-whammy on the taxpayer - many of whom are either losing their jobs, having their salaries frozen, or paying more taxes.
Then again, I sure hope my colleague gets that job with the government. They really do need a job. Ah, forget I brought the whole thing up.
The federal government is hiring. In fact, they've increased their employees by 15.6%. In a down market, with and average 600,000 people losing their jobs every month, this is a big, BIG number. Even if you back out the temporary hires for the census (one is due in 2010), there is still a net gain of 2%.
Average salary? $75,419 - up from $72,800 last year. (All stats courtesy of CBS Econowatch.)
One part of me thinks: how nice; people are losing their jobs and the government's picking up the slack. Or, gosh, college grads can get gainful employment instead of moping around the house this summer.
But the other part knows that government employment means bigger government payrolls, bigger bureaucracy, none of which actually produces anything in our economy. Yes, more employed people making money means more money to spend. But guess what? Consumer spending is declining. So any gain is being muted by the trend in reduced spending.
And for those who are hired and spend their careers in government, there's the pension benefits that must be paid out from - right, our tax dollars. With all the contingent liabilities the government has teed up for our future, add this one.
And to the extent our resources are directed to paying for more government employees and their (rather generous) benefit and pension packages, fewer resources are directed to economic growth. (The government doesn't "produce" anything.)
Oh, and to the extent that our economy is shrinking (in a recession, the economy shrinks) and the government grows, that's a kind of double-whammy on the taxpayer - many of whom are either losing their jobs, having their salaries frozen, or paying more taxes.
Then again, I sure hope my colleague gets that job with the government. They really do need a job. Ah, forget I brought the whole thing up.
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