02 March 2011

How Does It Really Compare?: Local Gov't. Wages v. Service Industry

In reading through the Governor's budget, I began to think: What percentage do other similar businesses pay for labor?

The business that came to mind was a hospital. They have a large labor force, don't actually make anything and provide a service with minimal materials.

Here's how they stack up:

From page 38 of the Governor's budget:















From "Trends in the Use of Contract Labor in Hospital" by American Hospital Directory, Inc:



The winner is LOCAL GOVERNMENT! Local government pays 43%, hospitals pay 52.4%! Apparently we are getting a deal! And, oh yeah, hospitals are mostly profitable.

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