More inflation and debt? The private sector stagnates while the U.S. government stands out as the biggest employer

The government stands out as the biggest employer of 2023. According to the Bureau of Labor Statistics, the public sector added 327,000 jobs at the state and federal level, nearly one-fifth of all new U.S. jobs created in the first eight months of the year. Indeed, since 2001, it is the highest number of new jobs in government or a 19% increase. In other words, of the total jobs created, the public sector created its highest number in 22 years.

As reported by The Wall Street Journal, a large portion of those job offers were to fill vacancies that were generated during the Coronavirus pandemic. For example, teachers, police officers and administrators, among others.

"Other roles at government agencies languished because the public sector couldn’t effectively compete against private employers that were offering pay raises and signing bonuses to attract talent during several years of a white-hot labor market," the newspaper explained.

Border security is also increasing personnel at the state and federal levels. Since Joe Biden took office in January 2021, millions of people have entered or attempted to enter the United States illegally, so officials had to reinforce staff in different sectors.

One such agency is U.S. Customs and Border Protection, which offers hiring bonuses of up to $20,000 for positions that are generally difficult to fill.

In this competition with the private sector, government employers know that it has to interest potential employees with attractive conditions. An analysis by ZipRecruiter found that government job postings posted on its site have a 20% increase in salary figures.

For Cara Woodson Welch, who heads the Public Sector Human Resources Association, the public employer is at a disadvantage because people don't usually know about their searches. "I don't think most job seekers have discovered the public sector yet," she told the WSJ.

In addition, state bureaucracy could be undermining a surge in hiring in the sector, while overspending could encourage cuts in some agencies.

According to economists and human resources managers, "recent gains in government payrolls could prove fragile if economic headwinds create budget shortfalls, making it harder for governments to fill new positions in the future. Some job seekers see potential downsides to government work, as well. In addition to earning salaries that are lower than many in the private sector, government workers can face an advancement process that is slower and more cumbersome," WSJ stated.