A new study from the Fraser Institute says government workers in British Columbia receive higher wages and more generous benefits than workers in the private sector.
The report, Comparing Government and Private Sector Compensation in British Columbia, looks at federal, provincial, and municipal employees using 2024 data from Statistics Canada’s Labour Force Survey.
According to the study, government workers in BC earned an average of 4.4 per cent more in wages than private-sector workers. After accounting for differences such as union membership, the wage gap was still 2.8 per cent.
The study also highlights differences in benefits. It says more than 84 per cent of public-sector workers were covered by a registered pension plan, compared to about 16 per cent in the private sector. Public-sector workers were also more likely to have defined-benefit pensions, retired earlier on average, took more personal leave days, and were less likely to experience job loss.
Jake Fuss, director of fiscal studies at the Fraser Institute, says the findings are important as the BC government is forecasting a deficit of more than 11 billion dollars this year. He says narrowing the compensation gap could help governments control costs while maintaining services.
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