Government Boomtowns: The New Detroit?

While the number of private sector jobs shrinks, places with higher proportions of government workers are doing quite well. It's estimated that public servants will see wage increases of 2% or more this year.

1 minute read

March 26, 2009, 4:00 AM PDT

By Judy Chang


"Last year, home building nose-dived throughout Canada-except in Ottawa, where industry is scant and one in five workers draws a government paycheck. In the Canadian capital the resale price for condos jumped nearly 12 percent in 2008 and 5.7 percent for single-family homes. No wonder, given that federal employees enjoy a 41 percent wage premium over private-sector workers. As Toronto Star columnist Jim Travers wrote recently, 'Hard times arrive here in mink slippers.'

Ditto Washington, where 28 percent of the District's paychecks are cut by the various layers of the federal bureaucracy. While the private sector has shed 4.6 million jobs since December 2007, when the economic contraction began, the federal government has hired 200,000 workers, according to the Bureau of Labor Statistics. The new administration will likely create another 400,000 temporary jobs and 180,000 permanent ones. No wonder D.C., without a factory in sight, was the nation's second-fastest-growing job market (after Alaska) in 2008."

Saturday, March 14, 2009 in Newsweek

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Aerial view of downtown San Antonio, Texas at night with rotating Tower of the Americas in foreground.

San Antonio and Austin are Fusing Into one Massive Megaregion

The region spanning the two central Texas cities is growing fast, posing challenges for local infrastructure and water supplies.

July 3, 2025 - Governing

White park shuttles with large Zion logo on side and red rock cliffs in background in Zion National Park.

Since Zion's Shuttles Went Electric “The Smog is Gone”

Visitors to Zion National Park can enjoy the canyon via the nation’s first fully electric park shuttle system.

4 hours ago - Reasons to Be Cheerful

Chart of federal transportation funding comparing Biden and Trump administration spending.

Trump Distributing DOT Safety Funds at 1/10 Rate of Biden

Funds for Safe Streets and other transportation safety and equity programs are being held up by administrative reviews and conflicts with the Trump administration’s priorities.

5 hours ago - Transportation for America

Close-up on yellow and black TAXI sign on top of beige car in central Munich, Germany.

German Cities Subsidize Taxis for Women Amid Wave of Violence

Free or low-cost taxi rides can help women navigate cities more safely, but critics say the programs don't address the root causes of violence against women.

6 hours ago - Bloomberg