Everybody on the Payroll, Then On the Pension

Sometimes it seems like a fool’s errand to keep repeating myself, but rebenchmarked annual average Current Employment Survey data has been released for 2010, and is available back to 1990 based on the current industry classifications. And Census of Population data has been released for 2010. What it shows is that while the City of New York has chosen, or been forced, to be somewhat fiscally responsible (with the exception of state deals favoring the public employees who commute in from the suburbs), the rest of the state seems to be run by 10,000 Mayor John Lindsays. Meanwhile, the substantially government-funded Health Care and Social Assistance sector (mostly the former, mostly for seniors), expands relentlessly, while State of New York agencies are downsized relentlessly.

From 1990 to 2010, New York City’s population increased by 11.6%, but its private sector employment excluding the substantially government-funded Health Care and Social Assistance sector edged down 0.5% (12,600 jobs). But its Local Government employment fell by 4.3% (20,500), with a gain of 7.7% (10,700) in Elementary and Secondary Schools (from a low base relative to population) more than offset by a decrease in other categories. The population of the rest of the state increased by just 5.0%, and its private sector employment excluding Health Care and Social Assistance fell by 4.2% (138,900 jobs). But its Local Government employment increased by (22.2%). That’s 121,400 future pension recipients, whose Florida retirement and health insurance will have to be paid for by someone. Employment grew both for the schools and other categories. No wonder New York State cut the city’s municipal aid to zero. There are lots of people elsewhere whom the world owes a living, but the world isn’t going to be paying.

Bear in mind, moreover, that New York City’s local government data includes New York City transit, whereas transit agencies elsewhere in the state – including the rest of the MTA – are classified as state government in this data. New York City’s data also includes an extensive public hospital and public housing system not present elsewhere.

State government employment fell 9.8% statewide from 1990 to 2010, while New York State’s population increased by 7.7%. State agencies have been hit disproportionately once again in the latest state budget, and reductions in state employment have hit NYC proportionately harder than the rest of the state.

Also similar statewide was soaring employment in the Health Care and Social Assistance sector, up more than 50.0% over 20 years in NYC and elsewhere in the state.

Looking at more recent data, the change in the annual average from 2009 to 2010 and the year-over-year change from February 2010 to February 2011, one finds that local government employment has started to fall in the rest of New York State, though not as much as in New York City in the former period. But by nowhere near enough to make up for the difference in trends over 20 years.

Part of the attached spreadsheet prints on one page. It is possible that NY State Department of Labor data is available in book form for the private sector as a whole, state government, and local government going back before 1990. It might make an interesting research project to append it to this file. And get some juicy newspaper quotes from politicians outside NYC from the 1960s, when then-Mayor Lindsay was begging for money in Albany while the City of New York’s public employment soared.