Public sector workers in Quebec would earn more than workers in similar positions in the private sector, in addition to better benefits, a new study revealed Tuesday.
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According to the study, conducted by the Fraser Institute, wages for federal, provincial and local public sector employees were on average 32.2% higher than those in the private sector in 2021. Differences such as age, seniority or occupation, this rate is still 7.8% compared to 4.9% when union organization is taken into account.
The public sector employs more than one million people, or 23.8% of Quebec’s labor force, and includes civil servants at all levels of government, as well as education and health workers.
“At a time when governments are facing serious fiscal pressures, aligning public sector pay with private sector pay would reduce costs without necessarily compromising services,” said Ben Eisen, senior fellow at the Fraser Institute, in a press release.
In addition, we find that social benefits are more generous in the public sector, be it in terms of pensions, early retirement, vacation time or job security.
“It is important that all levels of government in Canada, local, provincial and federal, continuously review spending with the goal of delivering better benefits to taxpayers,” added Mr. Eisen, noting that closing this gap would contribute to “securing the sustainability of public finances in the long term”.
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