Report: Public employees express concern about inflation

Over the last three years, inflation in the United States has spiked by nearly 20%. And while some are weathering the economic uncertainty better than others, price increases have impacted all aspects of everyday life. 

In a new report from MissionSquare Research Institute, 34% of the more than 1,000 state and local government employees surveyed said money is tight and it’s somewhat or very difficult to make ends meet. Two in three reported they’re “extremely or very worried about inflation making it hard to keep up with the current cost of living,” reads the report, “State and Local Government Employees: Morale, Public Service Motivation, Financial Concerns, and Retention.”

“The high levels of financial anxiety and burnout that we’re seeing among public sector workers play a key role in the recruitment and retention challenges that state and local governments continue to face,” said Rivka Liss-Levinson, Ph. D, senior research manager at MissionSquare Research Institute and lead author of the research. “On the plus side, 66% of public sector workers report positive morale, and 59% are very or extremely satisfied with the quality of their colleagues/coworkers. We hope this research provides key insights and serves as a valuable tool for public service employers grappling with stubbornly high numbers of unfilled jobs.”

The findings highlight recruiting advantages specific to the public sector, as noted by the respondents. For example, 92% highlighted job security as the primary reason they took on their current job, 87% said job satisfaction enticed them to accept, and 86% cited strong retirement benefits offered by their organization.

Despite these findings and the report of positive morale, about 400 respondents said they’re considering changing jobs in the near future. The research highlights a divide in perspectives—employees aren’t ambivalent about their jobs. They are either content or they’re looking to move on. When asked what emotions they have felt about their job in the past year, respondents were most likely to report feeling stressed (49%), burned out/fatigued (47%), and grateful (43%), according to a statement about the findings, which are based on an national online survey conducted at the end of last year by Greenwald Research.

And when one employee leaves because of burnout, it puts pressure on those remaining. More than one in three respondents said they’ve experienced increased strain on their workload due to someone leaving the organization, with 34% describing it as “significant strain.”

“With all the economic turmoil and lingering inflation, it’s not surprising that so many public service employees are worried about their financial and retirement security,” said Lynne Ford, CEO and president of MissionSquare Retirement. “This survey found only 26% of public employees are confident that they are on track to financial security in retirement. Even fewer, 23%, are confident that they will have enough money to pay for their medical expenses or long-term care during retirement. Given that benefits are employee magnets, this research is a clear signal that employers must continue to offer strong benefits to public service workers.”