New study shows public sector employees struggle to pay bills

Close to one-fifth of all public employees have reported skipping health care because they couldn’t afford it.

This statistic comes from a study by MissionSquare Research Institute, an organization that analyzes data from public sector retention and retirement. Its latest study looked at public sector employees, also known as those working in government, and their difficulties in affording health care and saving for retirement.

The study was created “as state and local governments face challenges in attracting and retaining public service employees, and against the backdrop of continued economic uncertainty and related strains on family budgets,” according to a news release. 

The research was created by Christian E. Weller, a professor at the University of Massachusetts. 

“Financial insecurity is a growing problem for most Americans, and the problem can be acute for public service workers,” Weller said. “This report is a clear indication that public sector benefits play a major role in financial wellness for the public worker. Public employers are wise to continue offering strong benefits packages that not only shore up financial and retirement security but also serve as magnets for public service workers.”

In addition to discovering the issues public sector employees have financially, the study found that oftentimes, employers have the ability to combat this if they would offer different benefit opportunities for their employees. 

Key research findings

From 2017 to 2019, 14% of public sector households—as well as 11.3% in public education—indicated they could not pay all their bills.

Almost one in three employees said they would struggle to find $400 in case of an emergency, showing that they are unable to build savings. 

In addition, around 80% of public employees worried they do not have enough money to last them throughout their retirement. 

Within Indiana, retention of public sector employees has proven a recent issue. Gov. Eric Holcomb arranged for new policies in 2022 to help keep state employees. 

To read the rest of the research, go here.