The Pros and Cons of Public and Private Sector Careers: Making the Right Choice for You

When it comes to work, positions generally fall into either the private sector (i.e., companies) and the other side is the public sector (i.e., government). In 2021, 21.1 million people worked in the public sector, which includes active military, and federal, state, and local government, including teachers, healthcare, and law enforcement. Last we checked, there were currently 44,878 public sector job openings on Indeed.com and, according to averagesalarysurvey.com, the average salary for public sector professionals is $71,420, the most typical salary being $52,000.

What are the benefits and drawbacks of a career in the public sector? Let’s start with the “cons”: 

The most obvious con to working in the public sector is (for the most part) public-sector professionals earn less money than their private-sector counterparts. When your salary is paid by taxpayers, you’re not going to be making a million dollars with an expense account, company car, or stock options. The majority of the approximately 21.1 million public sector workers hover around that $52,000 mark.

And speaking of compensation, if you don’t want people to know how much money you make, stick to the private sector. When you work for the public, your salary is public. This is to promote transparency, ensure accountability, and prevent corruption. There are entire watchdog organizations that spend their time tracking taxpayer dollars, including salaries, to those ends (or partisan ones).

Also, Don’t expect a quick hiring process. Time isn’t money. Hiring for public sector jobs may take a long time, especially if it’s a job that involves sensitive areas and requires invasive background/security clearance checks. The military, education, health care, law enforcement, and government administration have their own onboarding processes (e.g., basic training, police academy, advanced degrees/teaching certifications, etc.,) and all of them take time. Patience and tenacity are required.

Additionally, unlike corporate America with its well-defined hierarchy and org charts, upward mobility may not be as clearly defined and it may take longer to move into higher positions of influence, power, and compensation. In the public sector, performance isn’t measured by the accounting department. It’s measured by less tangible criteria unique to its sector. For example, a private in the Marines, a public school teacher, and a police officer have very different missions and performance standards, but they are united by the fact they are taxpayer-funded and “rising in the ranks” isn’t based on profit. Patience and tenacity are required.

What if you’re a technologist? Unless you’re working for DARPA designing cutting edge systems, state-of-the-art technology doesn’t necessarily define the public sector. There is less money to spend on hardware, training, research, and development. 

On the other hand, a life of public service can be very rewarding. Here’s the “pros”:

The public sector is mission-driven, not profit-driven. You’re there to serve people. Personal happiness is often greatly enhanced by meaningful work and meaningful professional relationships. The public sector is designed to promote those two ambitions. Your work directly impacts your community – hopefully in a positive way!  

While the public sector’s base compensation and earnings potential is lower than the private sector, the compensation package may have its silver linings. Government benefits such as pensions, 401ks, health insurance, life insurance, etc., tend to be relatively robust. Schedules and vacation time may be more flexible. Since everybody knows the economic trade-off when working in the public sector vs. the private sector, the public sector will provide as many extras and perks as it can. 

Also, there tends to be greater job security in the public sector. There will always be a military, children who need to be educated, veterans who need health care, and cities and states that need dedicated and talented professionals to keep the lights on and roads paved. Public sector workers are less vulnerable during recessions. Nobody is going to buy out the local government and move it overseas. Everybody needs government services on an ongoing basis.

When it comes to overall performance, instead of slogging through a year-end financial report to know whether the company had a good or bad year like a private sector company, public sector professionals see the results of their work all around them every day. They interact with their customers – aka neighbors – all the time. The public sector is public service, so if you love to help people, the public sector may be your calling.

Then there’s the unique career opportunities which come available due to the nature of the services the public sector provides. you may get a chance to perform work that would otherwise be closed off to you. There are things that only the government can do and there are even more that only the federal government can do on a large scale. For example, emergency management. For all its public sector faults (e.g., slow), if you work for FEMA, you’re saintly. You go to where the disasters are and help people who need it the most. The National Guard does that too. And cops, firefighters, and every type of first responder. That’s pretty great and those kinds of opportunities are mostly found in the public sector.

And last, due to the nature of the federal government, many public sector jobs are overseas, so you may get to see the world. The U.S. military and federal agencies operate around the world. Bon voyage!

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.insidercs.com.