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Many individuals, at some point in their career, face a decision whether to transition to or from jobs in the public sector (the part of the economy that is owned and operated by local, state, and/or federal government bodies) versus the private sector (the part of the economy driven by private individuals and privately owned companies, either for-profit and not-for-profit that is not owned by the government).
According to data from the Bureau of Labor Statistics, for 2018 the public sector employed 13.9% of the workforce (Federal – 1.7%, State & Local – 12.2%) and the Private Sector employed the remaining 86.1% (Goods-Producing, Services-Providing, Agriculture, Self-Employed). It’s difficult to make the case that taking a job in one sector is better than the other. Each provides its own benefits and rewards, and it usually comes down to alignment between personal goals and professional interests.
Pros of the Public Sector:
Most job opportunities are where you already live. State and local government are the primary public sector employers and the third highest employer in the country overall. (BLS, 2018)
While public sector jobs tend not to pay as well as private sector jobs; but being a “public servant” can be rewarding and meaningful with greater work/life balance. And you serve your country or community.
The public sector is not motivated by profit, but it is more often motivated by education, ideology, and ambition. If you are an educator or leader who wants to shape, influence, or improve the world, then may be for you.
Public sector roles tend to offer more job security and financial options through instruments like credit unions (e.g. easier home loans/better mortgage rates), more robust health benefits, and retirement funds.
Pros of the Private Sector:
The private sector provides the vast majority of career opportunities.
On average, private sector workers tend to be paid more than their Public Sector counterparts. According to a Washington Post article, private sector employees exceeded federal salaries by an average of 32 percent.
If you are an entrepreneur and wish to build a company and/or fortune from scratch, while retaining ownership, the only place to do it is in the private sector.
There are 30.2 million small businesses in this country, which is 99.9% of all United States businesses (source: SBA Office of Advocacy, which defines a small business as a firm with fewer than 500 employees, 2019). Small businesses provide a great number of the career opportunities available.
If you are motivated by some kind of social or cultural passion and profit, private sector nonprofit occupations may provide a great balance between compensation and working for the benefit of others.
There is also a vital nexus between the Public and Private sectors, which have additional “Pros”:
In the sociological study of human civilizations, there is a consensus that societies with an active, symbiotic partnership between the public and private sectors have driven the most innovation and success. (Maps of Time, David Christian)
There are many careers and many opportunities in both sectors that work in partnership with another. For example, research.
Lucrative government contracts/grants/earmarks make their way from the public sector to the private sector on an annual basis.
A “revolving door” between the public and private sectors means more career choices for you based on your personal needs and desires, which evolve over time.
Each sector has its own unique way of developing your skills. It’s worth researching which may support your unique goals in the best way, but ultimately work experience gained in one sector can only strengthen your performance in the other.
Philip Roufail contributed to this article.
Scott Singer is the President and Founder of Insider Career Strategies Resume Writing & Career Coaching, a firm dedicated to guiding job seekers and companies through the job search and hiring process. Insider Career Strategies provides resume writing, LinkedIn profile development, career coaching services, and outplacement services. You can email Scott Singer at scott.singer@insidercs.com, or via the website, www.insidercareerstrategies.com.
