Think about which of these things you value most in a job or career. Is it a higher salary \u2014 or is it knowing you\u2019ll definitely have a job tomorrow? Is it serving the public good \u2014 or is it working with the newest, most interesting technology? Both the private and public sectors have plenty to offer, but which may be a better fit for someone is a highly individual decision. Read on to find out which sector makes the most sense for you!<\/p>\n\n\n\n
\n\n\n\n
What is the Public Sector?<\/h2>\n\n\n\n
The public sector refers to organizations owned, funded, and controlled by the government, both federal and local. Jobs in this sector often have a strong focus on providing public services and are paid for by taxes, but a few operate as corporations and aim to pay for their own expenditures (i.e. the U.S. Postal Service).<\/p>\n\n\n\n
What is the Private Sector?<\/h2>\n\n\n\n
The private sector refers to the part of the economy run and owned by individuals and for-profit companies. Huge enterprises like Google fall under the umbrella of the private sector, but small mom and pop shops are classified as private sector businesses as well. Technically, non-profits fall under this designation but making money is the primary objective of a majority of private sector businesses.<\/p>\n\n\n\n
What Kind of Jobs Can You Get in Each?<\/h2>\n\n\n\n\n\nJobs in the public sector<\/strong> might be in:<\/p>\n\n\n\n- Public Education<\/li>
- Armed Services<\/li>
- Public Transit<\/li>
- Legal Services<\/li>
- Civil Servitude<\/li>
- Politics<\/li>
- Welfare<\/li>
- Law Enforcement<\/li>
- Legal Services<\/li>
- Employment<\/li>
- Natural Resources<\/li>
- Health Services<\/li>
- Emergency Services<\/li>
- Social Work<\/li><\/ul>\n<\/div>\n\n\n\n\n
Jobs in the private sector<\/strong> might be in:<\/p>\n\n\n\n- Financial Services<\/li>
- Hospitality<\/li>
- Healthcare<\/li>
- Legal Services<\/li>
- Real Estate<\/li>
- Technology<\/li>
- Retail<\/li>
- Construction<\/li>
- Manufacturing<\/li>
- Pharmaceuticals<\/li>
- Media<\/li>
- Food Services<\/li>
- Leisure<\/li>
- Travel<\/li><\/ul>\n<\/div>\n<\/div>\n\n\n\n
There are many jobs you can get in both the public and private sectors. For example, you could be a lawyer, software engineer, surgeon, or pilot in either sector. This is why it\u2019s important to consider which sector might be the best fit for you, your goals, and your values.<\/p>\n\n\n\n
Public Sector vs. Private Sector: Direct Comparison<\/h2>\n\n\n\n
There are numerous factors to consider when it comes to your public sector vs. private sector decision. Read on to see which sector takes the overall \u201cwin\u201d when it comes to each category, but keep in mind that these are generalities and there are variations in the following factors when considering specific organizations, industries, and roles.<\/p>\n\n\n\n
Benefits <\/h4>\n\n\n\n
Overall Winner: ? Public Sector <\/strong><\/p>\n\n\n\nWhile some private companies provide their employees with great benefit plans, overall, the public sector tends to win out here. Federal employees enjoy comprehensive insurance packages and generous retirement plans.<\/p>\n\n\n\n
Insurance<\/h6>\n\n\n\n
While public health insurance may be less flexible (there\u2019s a limited number of providers who accept public health insurance), it\u2019s very affordable<\/a>. There are often no co-pays required or deductibles to meet.<\/p>\n\n\n\nRetirement<\/h6>\n\n\n\n
Public sector employees are on average able to stop working three years earlier<\/a> than private sector employees. And there’s a real difference between pensions and 401(k)s<\/a>. <\/p>\n\n\n\nWhile folks with a 401(k) \u2014 the usual retirement plan for private sector workers \u2014 have early access to these funds<\/a> in an emergency, pension plans offered to public sector employees tend to be viewed as preferable. Though this money is not accessible before retirement, pensions are fully contributed by the employer (the government) and are not subject to market fluctuations. On the other hand, 401(k)s are mostly built through employee contributions and involve some market risk.<\/p>\n\n\n\nJob Satisfaction<\/h4>\n\n\n\n
Overall Winner – ? Private Sector<\/strong><\/p>\n\n\n\nAlthough working in the public sector can give you real satisfaction when it comes to serving the public good, it turns out that overall employee engagement for federal employees falls significantly below their private sector counterparts. Although there are some government agencies that score incredibly high, the engagement rating of public sector employees averages at 69 out of 100 points as compared to private sector\u2019s 77<\/a>.<\/p>\n\n\n\nOne reason for these numbers could potentially be the more dynamic nature of private sector work. Government agencies are, in a way, monopolies. They don\u2019t have to compete to become more efficient and profitable. In fact, they have a duty to ensure that things continue to run smoothly and have less capacity \u2014 and incentive \u2014 for innovation and operational evolution. It\u2019s pretty much the opposite in the private sector. If these businesses don\u2019t keep up with cutting-edge technology and new ways of doing things, they tend not to survive. <\/p>\n\n\n\n
Because of this, private sector employees may have access to a more dynamic work environment, learning new skills and constantly being challenged to grow. On the other hand, the roles of government workers tend to be rigidly defined and can involve performing similar tasks repeatedly. <\/p>\n\n\n\n
Finally, there\u2019s simply more diversity of industries and roles in the private sector. You\u2019re more likely to find something that fits your exact interests there. Think about it \u2014 you\u2019d be hard pressed to find something as niche as theater design work in the public sector. <\/p>\n\n\n\n
Work Culture<\/h4>\n\n\n\n
Overall Winner – ? Public Sector<\/strong><\/p>\n\n\n\nThere\u2019s another side of the coin when it comes to the agile nature of private sector business. While the ever-optimizing aspect of competitive business may keep things interesting for employees, it can also come at a cost. <\/p>\n\n\n\n
You may be looking at a more demanding environment: longer hours and a performance-based, competitive culture. This is not for everyone. While some thrive in competitive conditions and are willing to put in extra hours to prove themselves and rise through the ranks, many find this extraordinarily stressful and would prefer a more reliable, less intense work culture.<\/p>\n\n\n\n
Advancement Opportunities<\/h4>\n\n\n\n
Overall Winner – ? Private Sector<\/strong><\/p>\n\n\n\nThe private sector is the clear winner in this category because promotions tend to happen more often and more quickly. While career advancement in the government relies on regulations around time served, promotions in the private sector can happen faster through negotiations with management and strong performance. You may find yourself moving swiftly up the ladder in this sector while federal employees must wait years for \u201ctheir turn.\u201d<\/p>\n\n\n\n
Also worth noting is that there\u2019s often more area for growth in the private sector. There can be a top level you reach working in the public sector from which there\u2019s nowhere further to advance.<\/p>\n\n\n\n
Job Security<\/h4>\n\n\n\n
Overall Winner – ? Public Sector<\/strong><\/p>\n\n\n\nThis time, the public sector wins in a landslide. In the private sector, you can be fired for any reason other than discrimination, retaliation, or whistleblowing. For example, if your company had a bad fiscal year, you may be unceremoniously terminated. <\/p>\n\n\n\n
In contrast, it\u2019s very difficult to lay off government employees after they pass a short probationary period. In fact, many federal positions are permanent. Public sector employees can only be fired if just cause is proven during a special hearing.<\/p>\n\n\n\n
An extra public sector bonus is that you cannot be fired for using your right to freedom of speech. While private sector employees can be demoted or let go for publicly expressing opinions viewed as harmful to the firm, government employees can say what they wish as long as the functioning of their agency isn\u2019t compromised.<\/p>\n\n\n\n
Pay<\/h4>\n\n\n\n
Overall Winner – ? Private Sector<\/strong><\/p>\n\n\n\nNow this category is actually pretty tricky because there\u2019s some real variation in pay across private and public sector positions. But we\u2019re giving the win to the private sector because on average, federal salaries lag 22.5% behind the private sector<\/a>.<\/p>\n\n\n\nUnfortunately, government employees have less ability to negotiate pay \u2014 wages and bonuses are generally set in stone and everyone tends to be given the same across the board. While it can be nice to know your job is safe and your salary predictable, private sector employees have more access to raises and higher bonuses. Many private sector businesses earn more profits than governmental agencies and therefore have more funds to reward their employees with.<\/p>\n\n\n\n
When it comes to direct public sector vs. private sector pay comparison, in general<\/em>, blue-collar or trade workers tend to be paid more in the public sector, and degreed white-collar or tech positions tend to be paid more in the private sector. <\/p>\n\n\n\nCheck out this breakdown of public sector vs. private sector salaries for 5 different jobs:<\/p>\n\n\n\n
Jobs in the public sector<\/strong> might be in:<\/p>\n\n\n\n Jobs in the private sector<\/strong> might be in:<\/p>\n\n\n\n There are many jobs you can get in both the public and private sectors. For example, you could be a lawyer, software engineer, surgeon, or pilot in either sector. This is why it\u2019s important to consider which sector might be the best fit for you, your goals, and your values.<\/p>\n\n\n\n There are numerous factors to consider when it comes to your public sector vs. private sector decision. Read on to see which sector takes the overall \u201cwin\u201d when it comes to each category, but keep in mind that these are generalities and there are variations in the following factors when considering specific organizations, industries, and roles.<\/p>\n\n\n\n Overall Winner: ? Public Sector <\/strong><\/p>\n\n\n\n While some private companies provide their employees with great benefit plans, overall, the public sector tends to win out here. Federal employees enjoy comprehensive insurance packages and generous retirement plans.<\/p>\n\n\n\n While public health insurance may be less flexible (there\u2019s a limited number of providers who accept public health insurance), it\u2019s very affordable<\/a>. There are often no co-pays required or deductibles to meet.<\/p>\n\n\n\n Public sector employees are on average able to stop working three years earlier<\/a> than private sector employees. And there’s a real difference between pensions and 401(k)s<\/a>. <\/p>\n\n\n\n While folks with a 401(k) \u2014 the usual retirement plan for private sector workers \u2014 have early access to these funds<\/a> in an emergency, pension plans offered to public sector employees tend to be viewed as preferable. Though this money is not accessible before retirement, pensions are fully contributed by the employer (the government) and are not subject to market fluctuations. On the other hand, 401(k)s are mostly built through employee contributions and involve some market risk.<\/p>\n\n\n\n Overall Winner – ? Private Sector<\/strong><\/p>\n\n\n\n Although working in the public sector can give you real satisfaction when it comes to serving the public good, it turns out that overall employee engagement for federal employees falls significantly below their private sector counterparts. Although there are some government agencies that score incredibly high, the engagement rating of public sector employees averages at 69 out of 100 points as compared to private sector\u2019s 77<\/a>.<\/p>\n\n\n\n One reason for these numbers could potentially be the more dynamic nature of private sector work. Government agencies are, in a way, monopolies. They don\u2019t have to compete to become more efficient and profitable. In fact, they have a duty to ensure that things continue to run smoothly and have less capacity \u2014 and incentive \u2014 for innovation and operational evolution. It\u2019s pretty much the opposite in the private sector. If these businesses don\u2019t keep up with cutting-edge technology and new ways of doing things, they tend not to survive. <\/p>\n\n\n\n Because of this, private sector employees may have access to a more dynamic work environment, learning new skills and constantly being challenged to grow. On the other hand, the roles of government workers tend to be rigidly defined and can involve performing similar tasks repeatedly. <\/p>\n\n\n\n Finally, there\u2019s simply more diversity of industries and roles in the private sector. You\u2019re more likely to find something that fits your exact interests there. Think about it \u2014 you\u2019d be hard pressed to find something as niche as theater design work in the public sector. <\/p>\n\n\n\n Overall Winner – ? Public Sector<\/strong><\/p>\n\n\n\n There\u2019s another side of the coin when it comes to the agile nature of private sector business. While the ever-optimizing aspect of competitive business may keep things interesting for employees, it can also come at a cost. <\/p>\n\n\n\n You may be looking at a more demanding environment: longer hours and a performance-based, competitive culture. This is not for everyone. While some thrive in competitive conditions and are willing to put in extra hours to prove themselves and rise through the ranks, many find this extraordinarily stressful and would prefer a more reliable, less intense work culture.<\/p>\n\n\n\n Overall Winner – ? Private Sector<\/strong><\/p>\n\n\n\n The private sector is the clear winner in this category because promotions tend to happen more often and more quickly. While career advancement in the government relies on regulations around time served, promotions in the private sector can happen faster through negotiations with management and strong performance. You may find yourself moving swiftly up the ladder in this sector while federal employees must wait years for \u201ctheir turn.\u201d<\/p>\n\n\n\n Also worth noting is that there\u2019s often more area for growth in the private sector. There can be a top level you reach working in the public sector from which there\u2019s nowhere further to advance.<\/p>\n\n\n\n Overall Winner – ? Public Sector<\/strong><\/p>\n\n\n\n This time, the public sector wins in a landslide. In the private sector, you can be fired for any reason other than discrimination, retaliation, or whistleblowing. For example, if your company had a bad fiscal year, you may be unceremoniously terminated. <\/p>\n\n\n\n In contrast, it\u2019s very difficult to lay off government employees after they pass a short probationary period. In fact, many federal positions are permanent. Public sector employees can only be fired if just cause is proven during a special hearing.<\/p>\n\n\n\n An extra public sector bonus is that you cannot be fired for using your right to freedom of speech. While private sector employees can be demoted or let go for publicly expressing opinions viewed as harmful to the firm, government employees can say what they wish as long as the functioning of their agency isn\u2019t compromised.<\/p>\n\n\n\n Overall Winner – ? Private Sector<\/strong><\/p>\n\n\n\n Now this category is actually pretty tricky because there\u2019s some real variation in pay across private and public sector positions. But we\u2019re giving the win to the private sector because on average, federal salaries lag 22.5% behind the private sector<\/a>.<\/p>\n\n\n\n Unfortunately, government employees have less ability to negotiate pay \u2014 wages and bonuses are generally set in stone and everyone tends to be given the same across the board. While it can be nice to know your job is safe and your salary predictable, private sector employees have more access to raises and higher bonuses. Many private sector businesses earn more profits than governmental agencies and therefore have more funds to reward their employees with.<\/p>\n\n\n\n When it comes to direct public sector vs. private sector pay comparison, in general<\/em>, blue-collar or trade workers tend to be paid more in the public sector, and degreed white-collar or tech positions tend to be paid more in the private sector. <\/p>\n\n\n\n Check out this breakdown of public sector vs. private sector salaries for 5 different jobs:<\/p>\n\n\n\nPublic Sector vs. Private Sector: Direct Comparison<\/h2>\n\n\n\n
Benefits <\/h4>\n\n\n\n
Insurance<\/h6>\n\n\n\n
Retirement<\/h6>\n\n\n\n
Job Satisfaction<\/h4>\n\n\n\n
Work Culture<\/h4>\n\n\n\n
Advancement Opportunities<\/h4>\n\n\n\n
Job Security<\/h4>\n\n\n\n
Pay<\/h4>\n\n\n\n
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