WIDENING GAP Average hourly wages: Year Public Private 2007 $39.50 $26.09 2004 $34.72 $23.76 Source: Bureau of Labor Statistics

The gap is widening every year, rising by an average $1.02 an hour last year and $2.45 an hour over the past three years. The better pay and benefits for public employees come as private-sector workers face stagnant wages and rising unemployment.

State and local government workers now earn an average of $39.50 per hour in total compensation, reports the Bureau of Labor Statistics (BLS). Private workers earn an average of $26.09 an hour.

Benefits are a big reason for the gap.

Companies have trimmed pension benefits and asked employees to pay a greater share of medical costs.

Few governments have imposed similar cuts on teachers, snowplow drivers, lawyers and other civil servants.

From 2000 to 2007, public employees enjoyed a 16% increase in compensation after adjusting for inflation compared with 11% for private workers.

The nation has 20 million state and local government employees. About 116 million people work in the private sector. The 2.7 million federal workers are not included in the BLS compensation data.

Traditional pensions and medical coverage for retirees are among the benefits making it more lucrative to work in government, says Ken McDonnell, program director of the non-partisan Employee Benefit Research Institute of Washington, D.C.

State and local governments have more than $1 trillion in unfunded liabilities for pensions and retirement medical benefits for public employees. A few governments are discussing how to cut costs:

•Rhode Island. Gov. Donald Carcieri, a Republican, wants to limit benefits and increase hours for state workers.

•Ohio. Gov. Ted Strickland, a Democrat, plans to sign legislation next week that will reduce the value of retiree medical benefits for newly hired school employees, excluding teachers. The law would push back early retirement ages for bus drivers, custodians and other school workers.

•California. The Orange County Board of Supervisors voted Tuesday to sue to repeal pension increases granted earlier to sheriff's deputies.

"If there's a benefit gap, it's because the private sector is going the wrong way by cutting benefits," says Paul McKenna, research director of the Oregon Public Employees Union.