Heven’t they Heard we have a Recession On?

When many people need money now, a report by USA Today about federal salaries shows a huge increase in the number of federal employees making over 6 figures. The numbers make it seem as if these workers are far from feeling the effects of the recession.

Employees previously making $ 100,000 or more saw an increase of between 14 and 19 percent in their salaries, before factoring in bonuses and overtime pay. That’s an awful lot of money for those that already are well off – and at a time when more people are hurting than ever.

And the Rich Get …Well, You Know the Rest

The number of civilian employees in the Defense Department earning $ 150,000 salaries increased from 1,868 at the end of 2007 to 10,100 in June of the current year. This sort of thing is nothing short of infuriating when millions are out of work, struggling to make ends meet, and especially when the president had promised more jobs all around. A lot of people would love to be working, but can’t find even a basic job.

Conversely, federal hiring has been on a steady rise in recent months. In the past 18 months, the Transportation Department has moved 1,689 employees into the $ 170,000 range, as compared to only one person earning this amount before this time.

Is this where it Ends?

Perhaps this would be easier to stomach if this were the extent of it. The truth is that the entire federal government is raising salaries, which is asinine considering we have a record deficit and debt. Six figure salaries are less common in these areas. Meanwhile, just about else is hard up for money now.

How is this Justified?

According to Jessica Klement, the government affairs director for the Federal Managers Association, these employees work in industries that require greater amounts of training or skills, and are working for less then their private sector counterparts. In fact, the USA Today article reports that Klement says that these workers make a whopping 26 percent less than private employees working in the same fields.

Is this Bogus?

USA Today also looked at federal employee salary stats from the Office of Personnel Management (except workers in Congress, Postal Service, the White House, the military, and at “intelligence” agencies – their track record justifies quotes). From the study they found that the average private sector salary was $ 41,331 and the average federal employee is making $ 71,206.

Shocking, but True

For the majority of Americans who really need money now, this is going to be some tough news to hear. The previous administration approved pay increases of 3 percent in January of 2008 and 3.9 percent in January 2009 for federal employees. The recommendation of President Obama is to take this down to 2 percent for the beginning of 2010, which may still sound high but is actually the lowest increase since 1975. These raises, among others and modified pay systems, have led to these egregious salary increases.