The Wall Street Journal:
With state and local governments struggling to balance budgets in a still sluggish economy, government employment has fallen by 562,000 jobs since September 2008, a decline of 2.6%. In response, the Obama administration has called for more federal aid—on top of the $250 billion doled out in the 2009 Recovery Act—to help keep state and local government payrolls near prerecession levels.
But supporters of more federal aid implicitly assume that the size of the public sector was optimal before the recession. On the contrary, overstaffing is a serious problem in government, and the best evidence is a simple empirical fact: Government employees don't work as much as private employees. If public-sector employees just worked as many hours as their private counterparts, governments at all levels could save more than $100 billion in annual labor costs.
How do we know that? Are we just dredging up well-worn stereotypes of government employees enjoying shorter work days, prolonged sick leave and extended vacation breaks? In fact, new evidence from a comprehensive and objective data set confirms that the "underworked" government employee is more than a stereotype.