A salary study of Alaska’s state workforce was released Wednesday, revealing that a majority of state employees are earning wages that are competitive within the state’s labor market and similar jurisdictions in the Lower 48.
The study, conducted by consulting firm Segal and approved for funding in 2023, has been in development for over a year. The contractor went out for more data and incorporated recently bargained and statutory pay increases.
A draft was completed last summer and has undergone several months of refinement before being posted publicly.
The analysis comes amid hounding from public employee unions, which have been sure the findings will help them as they gear up for salary negotiations.
They may be disappointed. According to the final report, 72% of Alaska’s state employees, in benchmark jobs covered by the report, earn base salaries that meet or exceed comparable wages in the broader labor economy. When measured against the 65th percentile of market wages, 57% of employees were found to be at or above that level.
The study focuses on base pay and does not include differentials, bonuses, or supplemental compensation — providing a clear view of how the state pay stacks up on core salary alone.
Certain sectors stood out as particularly competitive. Employees in public safety roles, including police, fire, and corrections, are at or above market rates, as are legal and judicial workers. This aligns with Gov. Mike Dunleavy’s ongoing emphasis on public safety as a top priority for his administration.
While the results may temper some union arguments for sweeping wage increases, union leaders are still expected to use the data as a starting point to address specific pay gaps and cost-of-living concerns across different classifications.
One recommendation that Segal made was for the state to reduce the number of job classifications, which are now over 1,000. Streamlining the system would allow the State to more quickly adjust to changes in the labor market.
Plus they receive free retirement, healthcare and other fringe benefits.
Free retirement? I have a 401k equivalent. And the salary study shows I’m being paid 20k less than market rate for the work I do. But I’m not surprised one bit that Suzanne is doing everything she can to summarize the findings in the best light possible for her angle.
Does you $20k less consider any of the following:
Do you work 37.5 hour work week vs 40? That’s +16 days/year less than traditional 40 hours/week
Do you enjoy the 12 state holiday compared with 6 or 7 found in the private sector?
Did you receive 26 paid vacation days in your first year of employment compared with maybe 15 days provided by a similar private sector job?
If yes, and the ‘market rate’ is $100,000/year then the equivalent salary (excluding your Cadillac Plan of insurance benefits) should be $80k
How many of us worked for years and never received any overtime? I know I sure did Duane. You complain about state employees all the time. If that life is so impressive and envious, why don’t you get a Stare job? There’s a high vacancy rate. Must be those great benefits holding you back?
Anytime someone one uses the “studies say” usually means they don’t have an actual study to prove their claim.
Show us an actual study that compares All State of Alaska employees who are not compensated in comparison to other states.
I’m a State Employee too and I have zero complaints about my paycheck.. or my retirement.
Working for any government agency should not be considered a lucrative position. Anything funded by taxpayers should not be over competitive but a living wage. Obviously higher if the position type is unusual or demands it. If you feel you are underpaid you should leave your state job, find a private job and save the taxpayers some money. I look at state work like I look at people in my field. You have people that spend money and people that make money. In the private sector that balances out. Government jobs fall into one category. People that spend money. Demanding a raise in your position is demanding we take more money from your fellow citizens pockets.
AUSW; State unions are comparing state salaries to private sector big business, a McDonalds worker at times puts out a better product than a statie’s, and this public union stuff, state employee jobs are not hard labor, but in fact receive among the best working conditions.
Thank you for your service. I would be pissed if I earned 20k less than I think I’m worth and find a different job. Glad there are people like you who just give so much.
I have never met an under paid government worker. Maybe 30 years ago but not today. The municipality of Anchorage pays over $62,000 per employee for benefits. So, my question to you, why are you still there?
actually they don’t receive free retirement or free medical
Private sector small business deserves everything a public employee receives., either the state provides the same to all, or none at all.
No they don’t, they are on a system similar to 401k with a 5 year vestment period.
Like most of your posts, you don’t actually have a clue what you are posting about, but hey, spew away, you are always good for a laugh!
I testified against Alaska providing a pension.
Did you know that the last time we had a pension, those members ended up having to fork over 25-30% or more of their income to sustain it? Can state employees afford that? I know I can’t.
It’s ridiculous to start a pension plan for state employees given our budget and the lack of population in Alaska.
If they want people to come to Alaska and work, they need to work on business incentives!!! Not more government debt.
Manda; can the State afford to pay a pension?
Lame take lady! We don’t appreciate it
Why does it take that much? My pension from Texas Teachers retirement system took about 9% from my pay. It even provides medical, dental, and vision plans for an inexpensive amount each month taken from my payment
“[The Report] …has undergone several months of refinement before being posted publicly.”
SO, is this is not the First “final” report initially done, completed and paid for by the State. Now it has been revised since the State did not like the first (FINAL) version they paid for? What was revised exactly betwee the first report and the “final” revised report on salary studies? Or will we ever know since I don’t suppose there was a redline strikeout version provided for comparison.
The lawsuit ASEA filed and APEA just joined is trying to get those exact documents thankfully.
So, why do they need a union?
We expect to take care of them.
There should be no Public Employees Union.
Slugs.
My husband and I grew up in very different types of families and yet we both were told the same thing about government jobs. “If you work for the government, you will get paid less but you will have better benefits and job security.” I’m not sure when it became normalized to expect to be paid the same as a non gov job. My father-in-law was offered a job with the City of Mesa, AZ as a surveyor over a hundred years ago but then he got a chance to work on the Roosevelt Dam being constructed. He always kicked himself over that because it would have been a better job in the long run to get on with the City but he was tempted by more money.
Except the benefits and job security isn’t better these days. That’s an antiquated perspective.
Can you provide some insight and facts re the total benefit package that you receive? That would be enlightening and help clear the air of false information. Thanks, I look forward to the data.
Dear “underpaid”:
I too am A State of Alaska employee and want to know exactly how you’re “underpaid”. I cannot show my 401k plan.. or my paycheck, but I know that I am compensated enough to pay rent, buy groceries AND have enough left over to buy frivolous items AND put money in savings and a Money Market account.
To me, it sounds like you have a personal budgeting problem.
If state employees are fairly compensated, why did our legislature vote for big ol’ raises for themselves and the governor last year? Dunleavey is in the top 10 of highest paid governors at a cool $176k salary. Meanwhile the people that actually do the work are paid at the middle of the road. Hypocritical much?
Can you name one time a politician who’s never voted a raise for themselves in American history?
“When measured against the 65th percentile of market wages, 57% of employees were found to be at or above that level.” – This is actually the reverse of what’s been stated elsewhere, including in an ADN article on the study: 57% of State of Alaska employees are paid below the 65th percentile. 32% of employees are paid below the 50th percentile, according to the same article in ADN.
Additionally, health insurance premiums are very far from free for State employees, and we have copays and deductibles comparable to what I’ve had with insurance plans in the private sector. Our retirement plan, as stated in other comments, is essentially a 401(k), also comparable to retirement plans I’ve had in private.
My main reason for staying in my current state job is that I love the work I do. I’m certainly not here for the pay or the benefits, and I hope that the governor’s office wakes up and realizes that his staffing problems are, in fact, due to subpar pay and average benefits, at best.
What do you research in your analyst role for the state? Hopefully nothing to do with numbers, because you show an astonishing lack of understanding about pay rates and benefits. This study shows that the average state worker is compensated at a higher hourly rate than those in the private sector. Since it does not include additional benefits, that we all know is more generous than that offered in the private sector, we can’t compare like to like to show just how much more state worker are compensated than those in the private sector.
The average state workers pay is not subpar according to this study. And it is common knowledge that benefits are well above the average private sector.
This study explains why there’s such a a high vacancy rate. The entry pay for most positions does not compete with the private sector, even when accounting for benefits. Many SOA new-hires stick around long enough to get trained and then grab a better paying job elsewhere. We’ve experienced this for nearly a decade in the SOA workplace. It’s quite alarming. And Administration snatches back unfilled PCNs, so extra duties stack up for those who do stay on the job. A career with the State of Alaska is nowhere near as attractive as it once was.
Jim,
Did you read the report? If you did, do you need help understanding because your comment here suggests you wither didn’t read or don’t understand it.
Thank you for this gentle reminder to the unions that union employees must stay in the general area of pay rates for other similar private sector jobs.
I know quite a few State of Alaska employees. Can’t help it when our state employs so many. Many are simply bureaucrats or functionaries who do a job as little as they can to avoid being fired while complaining they could make more money in the private sector. Yet, they never leave their state job. No company will put up with their entitlement and low productivity. I work in private industry. I seldom see state workers come to work here. I also know some state workers who bust their tails with a motivation and ambition to make Alaska a better place to live, drive the economy forward and secure a brighter future for their kids and grandkids. Those employees know exactly who the foot-draggers and slackers are. They can do nothing about it. And it is the single most frustrating part of their job to put up with people whose work product or production is about 20% of theirs, thanks to the state workers’ unions. I’ve also watched how these high performers move on to much more lucrative jobs in private industry because they are valued for the ingenuity, productivity, drive to perform – and results.
Bingo.
As a state worker and former laid-off private sector worker, I can say that the majority of us work hard with the tools we are provided, on a shoestring budget.
We don’t have the convenience of integrating new efficiencies into our protocols without months of vetting. This is because we are stewards of taxpayer money.
We are constantly working to make our procedures and functions as efficient as possible without sacrificing quality, breaking the law, or risking national security.
Every industry has individuals that are burnt out and do as little as possible to get by. Unfortunately, even if you do sacrifice greatly for work, there’s little loyalty these days to show for it.
My parents, both private sector workers, were just laid off this year. Their respective companies gave them no loyalty for their hard work. They often worked well outside their normal duties and hours, only to be let go after decades of dedication. People are burnt out from the fear of an economic downturn.
At the end of the day we all want the same things in life. We all want to be valued, properly compensated for our time, and to reduce our own individual suffering. It’s what makes us human. We should be looking at our commonalities, fight for our basic rights, and work together.
Ya I agree with under paid state worker, I worked for Ahtna on the pipeline 43$ hr plus retirement bennies, cruze on the slope 43+/- plus retirement. Then last summer ran prentice ax for a short time at our local DOT camp. Fun job but 30$ hr. Didn’t mind as I’m retired now, but medical as long as you work just like other trades, retirement 401 k and state SBS, no free life med though. As you’re step increase’s, wage goes up, but it takes a decade to reach what I made with 302 and teamsters. The other problem is they can’t attract skilled workers unless they get a guy who wants to stay around to raise a family because as we know slope work is hard on family life. As a result you have a bunch of guys, young an old, with not much experience tearing up iron and they aren’t fired like the private sector. I wouldn’t want to be in DOT now or a political position to try to figure out this mess they created.
Steve,
You didn’t read the report either did you.
A link to the report would be helpful – I wonder where it can be seen?
Privatize everything we can. Dot being the first. Private sector builds our roads they can surly maintain them.
Yes please. AK DOT has no business being involved in managing construction of any type, our roads are the proof of this.
Did you notice that there was no mention of teachers on this report? I wonder why that is. In 2006 when the state dropped tier 2 and added the illustrious tier 3 we started to see a rapid decline in teachers and in teacher salaries. Yes 72% of the unions in the state are compensated adequately, let’s not forget those that taught them how to be functioning members of society. Give teachers what they deserve!
It’s not a good sign that those “teaching” our children do not know that they aren’t employed by the state. Increasing the BSA for this level of education provided by an uneducated person is insanity at its finest.
Tell them to go to their unions for a raise in salary, that is where all of the excess funding is going.
The saying “lies, damned lies, and statistics” came about for a reason.
If 32% of state workers make less than the 50th percentile that means that 68% are paid at or above the 50th percentile…last time I checked 68 is greater than 32 by more than double. So more than twice as many state employees are paid greater than the average private employee in similar job classifications, as opposed to those who are paid less than the average. Likewise if 57% of state employees are at or below the 65th percentile of their contemporaries in the private sector that means more state employees are paid at a higher rate than the average private employee in the same job classification.
In otherwords it is more likely than not, and in some cases more than twice as likely, that you are paid an hourly rate higher than those in the private sector doing a similar job. It’s almost certain that your other compensation such as paid time off, retirement benefits, medical benefits, life insurance, and other compensation is much higher than those holding similar occupations in non-governmental work.
More division nonsense. If State employment is so wonderful, why don’t those of you wailing and gnashing your teeth about it get a State position? There’s a lot of jobs available. Stare government has a very high vacancy rate. Go for it! Be wealthy. Be powerful. Then grow up and live in reality.