PUBLIC EMPLOYMENT TRENDS IN NEVADA

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1 TECHNICAL REPORT UCED PUBLIC EMPLOYMENT TRENDS IN NEVADA UNIVERSITY OF NEVADA, RENO i

2 PUBLIC EMPLOYMENT TRENDS IN NEVADA Study Conducted by Manuel N. Lopez and Thomas R. Harris Manuel N. Lopez is a Research Associate in the Department of Applied Economics and Statistics at the University of Nevada, Reno. Thomas R. Harris is a Professor in the Department of Applied Economics and Statistics and Director of the University Center for Economic Development at the University of Nevada, Reno. March 1996 UNIVERSITY OF NEVADA RENO The University of Nevada, Reno is an Equal Opportunity/Affirmative Action employer and does not discriminate on the basis of race color religion sex age creed national origin veteran status physical or mental disability and in accordance with university policy sexual orientation in any program or activity it operates. The University of Nevada employs only United States citizens and aliens lawfully authorized to work in the United States. ii

3 This publication, Public Employment Trends in Nevada, was published by the University of Nevada Economic Development Center. Funds for the publication were provided by the United States Department of Commerce Economic Development Administration under University Centers Program contract # This publication's statements, findings, conclusions, recommendations, and/or data represent solely the findings and views of the authors and do not necessarily represent the views of the United States Department of Commerce, the Economic Development Administration, University of Nevada, or any reference sources used or quoted by this study. Reference to research projects, programs, books, magazines, or newspaper articles does not imply an endorsement or recommendation by the authors unless otherwise stated. Correspondence regarding this document should be sent to: Thomas R. Harris, Director University Center for Economic Development University of Nevada, Reno Department of Applied Economics and Statistics Mail Stop 204 Reno, Nevada UCED University of Nevada, Reno Nevada Cooperative Extension Department of Agricultural Economics iii

4 Public Employment Trends in Nevada Nevada residents, along with those of many other states, are presently voicing increasing aversion to continuing growth in the public sector. Government at the federal, state and local level is being strongly pressured to reduce both taxes and expenditures. One common complaint against government at all levels is the size of its payroll and the number of government employees. Contrary to public belief, Nevada s public employment figures are low compared to other states, and are actually declining as a proportion of the state s total population. Table 1. Full-Time Equivalent Employees of State and Local Governments in Nevada per 10,000 Population and Rank Among Fifty States and the District of Columbia Year Employees Rank Source: U.S. Department of Commerce. Public Employment. Various Issues Table 1 shows public employment in Nevada as a proportion of the state s population from 1978 to 1992, and compares Nevada with the other states in the nation and the District of Columbia. From 1981 to 1985, Nevada s ranking remained fairly constant, indicating that growth of employment in Nevada s public sector was similar to growth in the rest of the country. Since 1985, employees per 10,000 population have decreased in Nevada while increasing in the nation as a whole. Nevada s ranking has dropped substantially, from twenty-first in 1981 to thirty-ninth in From 1981 to 1992, the number of public employees (full time equivalent - FTE) per 10,000 population rose 10.08% nationwide, while remaining the same in Nevada. From 1986 to 1992 the number of employees increase 6.5% nationwide while it remained the same in Nevada. From 1990 to 1992 public employment nationwide decreased by 0.38%. 1

5 For the State of Nevada, public employment decreased by 2.07% for the same period. As can be seen from Table 1, Nevada s sharpest decrease occurred in It is clear, however, that the growth of state and local government employment has been slowing since Table 2 traces the trends in Nevada s public employment figures for education, public welfare, and police protection. Table 2 shows, employment per 10,000 population in these categories decreased in Nevada between 1988 and 1992, except for elementary and secondary education institutions. In the cases of higher education, public welfare and police protection, the 1992 employment figures (per 10,000 population) were even lower than those for The area which realized the sharpest decrease in Nevada from 1981 to 1992 was police protection, with the number of police protection employees per 10,000 population decreasing by 12.3%. Nationwide, police protection employees per 10,000 population decrease 7.1% during this same time period. Nevada s ranking dropped from third in 1981 to seventh in Table 2 shows that in 1992, the number of higher education instructors, and also the number of elementary and secondary education instructors together per 10,000 population in Nevada ranked forty-ninth, and forty-eighth respectively. Salaries for public employees are relatively lower in Nevada than in other states. In 1992, Nevada ranked 38th in this respect. The overall public payroll as a proportion of total state personal income has been declining in Nevada since This means a smaller portion of the total dollars earned in the state are being earned by public employees. In 1982 the Nevada state and local employment payroll accounted for 8.37 percent of state personal income. In 1988, government payroll was 7.41 percent of personal income and by 1992, it had increased to 7.80 percent of total state personal income. In summary, Nevada s state and local government employment as a proportion of the state s population has been declining since The sharpest decreases occurred between 1979 and For the nation as a whole, the total number of employees per 10,000 population continued to increase during the period , with a slight decrease in Nevada s ranking in employees per 10,000 population was thirty-ninth in For specific functions, Nevada s ranking varied. Employees per 10,000 population were low in education, last in public welfare, while relatively high in police protection. 2

6 References Public Employment, U.S. Department of Commerce, Bureau of the Census, issues. Statistical Abstract of the United States, 1994, U.S. Department of Commerce, Bureau of the Census. 3

7 Table 2. Full Time Equivalent Employees of State and Local Governments in Nevada per 10,000 Population for Specific Functions and Rank Among the Fifty State and the District of Columbia Education Elementary & Secondary Total for All Higher Education Education Public Police Functions Instruction Instruction Welfare Protection Year FTE s Rank FTE s Rank FTE s Rank FTE s Rank FTE s Rank a a a The District of Columbia is included in the state count. Source: U.S. Department of Commerce. Public Employment. Various Issues 4