Latest Trends on U.S. Employee Benefits: PTO, Health Insurance, Retirement Plans, and More

The U.S. Bureau of Labor Statistics (BLS) has just released its latest survey data as of late 2024, shedding light on the current state of employee benefits in the United States. This comprehensive report covers a range of benefits, from paid time off (PTO) to health insurance and retirement plans. Let's dive into the key findings and see how these benefits are shaping the workplace.

The data we present below for each employee benefit will show percentages based on three categories of workers: civilian, private industry, and state/local government workers. Let's first understand what each category means and who belongs to each group.

This group includes all employees in the private industry and state and local government sectors. It does not include federal government employees, military personnel, or agricultural workers. Civilian workers represent the largest category, offering a broad overview of the general workforce.

These are employees who work for private sector businesses, ranging from small companies to large corporations. They are employed by non-governmental organizations and profit-driven businesses.

This category consists of employees working for state and local government entities, such as public schools, police departments, and municipal offices. These workers are employed by government agencies and institutions that provide public services.

Imagine being able to take a well-deserved vacation or a much-needed sick day without worrying about your paycheck. That's the reality for many U.S. workers today. As discussed in our Basics to PTO, paid time off includes multiple types of employee leave, such as sick leave, holidays, vacation days, family leave, and many others. According to the U.S. Bureau of Labor Statistics, 77% of the general workforce or civilian workers have access to paid vacation leave. This refers to all workers in the private industry and state and local government sectors, excluding government employees, military personnel, and agricultural workers. Even better, 79% of these workers can enjoy paid holidays such as Christmas, Thanksgiving, Independence Day, and more. And when it comes to paid sick leave, 81% of civilian workers are covered. These benefits are essential for maintaining a healthy work-life balance and ensuring employees can recharge and stay productive.

Let’s look at these data as reported by U.S. BLS, focusing on latest data 2024.

PTO Benefit Civilian Workers Private Industry Workers State and Local Government Workers
Access to Paid Vacation in 2024 77% 80% 60%
Access to Paid Holidays (Paid Public Holidays) in 2024 79% 81% 68%
Access to Paid Sick Leave in 2024 81% 79% 92%
Access to Paid Family Leave in 2023 27% 27% 28%

source: https://www.bls.gov/ebs/latest-numbers.htm

When it comes to Paid Time Off (PTO) benefits, there are notable differences between civilian workers, private industry workers, and state and local government workers. Let's break down each category and highlight the disparities:

  • Explanation: Paid vacation refers to the days off that employees can take while still receiving their regular pay.
  • Data: In 2024, 77% of civilian workers have access to paid vacation. This is slightly lower than the 80% of private industry workers. However, only 60% of state and local government workers have this benefit.
  • Disparity: There is a 25% gap, with private industry workers having more access to paid vacation compared to state and local government workers.
  • Explanation: Paid holidays are specific days off, such as public holidays, where employees are paid even though they do not work.
  • Data: Paid public holidays are available to 79% of civilian workers and 81% of private industry workers. In contrast, only 68% of state and local government workers have access to this benefit.
  • Disparity: The gap here is 16.05%, with private industry workers having more access to paid holidays than state and local government workers.
  • Explanation: Paid sick leave allows employees to take time off when they are ill without losing pay.
  • Data: The majority of workers across all sectors have access to paid sick leave. State and local government workers lead with 92%, compared to 81% of civilian workers and 79% of private industry workers.
  • Disparity: Interestingly, state and local government workers have 16.46% more access to paid sick leave than private industry workers.
  • Explanation: Paid family leave provides employees with paid time off to care for family members, such as during childbirth or illness.
  • Data: This benefit is less common across all groups, with only 27% of civilian and private industry workers having access in 2023. State and local government workers fare slightly better at 28%.
  • Disparity: The gap is minimal at 3.70%, with state and local government workers having slightly more access to paid family leave.

Health insurance is a cornerstone of employee benefits, providing crucial support for medical needs. The BLS data reveals that 45% of private industry workers have access to medical care plans in 2024. If we are to compare that with workers in the public sector, this number jumps to 67%. That means that, in terms of health care, state and local government workers have a higher participation. These benefits not only help employees stay healthy but also reduce financial stress related to healthcare costs.

Medical care plans typically include a range of health-related benefits such as hospital and physician services, prescription drugs, and preventive care. These plans are essential for ensuring that employees have access to necessary medical services without incurring significant out-of-pocket expenses. Let’s break down the health insurance benefit (medical care plans) for different groups of workers in 2024 according to the U.S. Bureau of Labor Statistics.

Health Insurance Benefit Civilian Workers Private Industry Workers State and Local Government Workers
Percentage of employees with access to medical care plans in 2024 48% 45% 67%

source: https://www.bls.gov/ebs/latest-numbers.htm

This data shows that state and local government workers have better access to employer-provided health insurance compared to private industry workers and the general civilian workforce. This disparity highlights the fact that public sector jobs often come with more comprehensive benefits packages, which can be a crucial factor for job seekers.

Planning for the future is vital, and retirement benefits play a key role in financial security. The BLS survey shows that 66% of civilian workers have access to defined contribution retirement plans. In the private sector, this figure is slightly higher at 70%. While defined benefit plans are less common, they are still available to 15% of private industry workers. These plans help employees save for retirement and ensure they have a safety net for their golden years. Retirement plans are essential benefits that help employees save for their future and ensure financial security during their retirement years. These plans can be broadly categorized into two main types: defined contribution plans and defined benefit plans.

Let's find out the difference between defined contribution retirement plans vs. defined benefit retirement plans for different groups of workers in 2024 according to the U.S. Bureau of Labor Statistics.

  • Defined Contribution Retirement Plans: These retirement plans involve employees contributing a fixed amount or percentage of their paychecks to a retirement account, often with matching contributions from the employer. Examples include 401(k) and 403(b) plans. Defined contribution plans help employees save for retirement and benefit from potential investment growth.
  • Defined Benefit Retirement Plans: Also known as pension plans, defined benefit plans provide a fixed, pre-established benefit for employees upon retirement. The benefit amount is typically based on factors such as salary history and years of service. These plans offer predictable retirement income, which can be a significant advantage for financial planning.

Here's the updated table summarizing the access to defined contribution and defined benefit retirement plans among different categories of workers in 2024:

Retirement Plan Benefit Civilian Workers Private Industry Workers State and Local Government Workers
Defined Contribution Retirement Plans 66% 70% 39%
Defined Benefit Retirement Plans 24% 15% 86%

source: https://www.bls.gov/ebs/latest-numbers.htm

In 2024, access to retirement plans showed notable differences across various worker categories. Defined contribution retirement plans were more commonly available to private industry workers, while defined benefit retirement plans were predominantly offered to state and local government workers. This disparity highlights the varying approaches to retirement benefits between the private and public sectors, with public sector employees generally receiving more traditional pension plans.

Civilian Workers: 66% had access to defined contribution retirement plans, while 24% had access to defined benefit retirement plans.

Private Industry Workers: A higher percentage (70%) had access to defined contribution retirement plans compared to civilian workers. However, only 15% had access to defined benefit retirement plans, indicating a lower prevalence of these plans in the private sector.

State and Local Government Workers: Only 39% had access to defined contribution retirement plans, significantly lower than both civilian and private industry workers. Conversely, a substantial 86% had access to defined benefit retirement plans, highlighting the more generous retirement benefits typically available in the public sector.

This data underscores the differences in retirement plan access, with public sector employees enjoying greater access to defined benefit plans compared to their private sector counterparts.

The BLS survey also highlights a variety of other benefits that enhance the employee experience. For example, 44% of private industry workers have access to wellness programs. In the public sector, this number is higher at 64%. Paid family leave is also offered, with 27% of private industry workers and 28% state and local government workers having access to it, contributing to overall employee well-being.

The latest BLS survey data paints a positive picture of employee benefits in the U.S. With substantial coverage in areas like PTO, health insurance, and retirement plans, these benefits are crucial for supporting the well-being and financial security of workers across different sectors. As the workplace continues to evolve, these benefits will remain a key factor in attracting and retaining top talent.

For a more comprehensive overview on the latest statistics of PTO access in the United States, check out this guide: Comprehensive Analysis of Employee Benefits in the U.S.