There are various industries and jobs in the world. These jobs can be classified into those that fall under either the public or private sectors. One of the first considerations for many job applicants is whether to choose to be a relatively safe public official or to be in a private company that can provide the opportunity. Public sector jobs usually focus on providing services for the public, while the private sector is characterized by its focus on creating profits for individuals and companies. Each of the two types of jobs has its advantages, and their differences are clear.
What is the private sector?
Private sector business refers to a company owned and operated by individuals or companies. The size of the company varies widely, from small regional businesses to global companies, and these companies play a crucial role in a country’s economy. The goal of a private sector company is to generate revenue. The benefits of the private sector include opportunities for promotion and bonuses depending on employees’ work performance. In addition, depending the business performance, employees can have opportunities to raise their salaries through salary negotiations. For these reasons, the private sector, which does not have an income limit, can be said to open doors of opportunity for employees to succeed.
What is the government sector (public sector)?
Government sector jobs are in institutions run and owned by the government. These institutions generally aim to provide public benefits for people rather than to profit. A typical advantage of employees working in this public sector is job security. Government agencies do not have to compete in the market, unlike the private sector, which has to compete continuously in the market. In addition, it provides higher job security because it is the goal of institutions to provide continuous services to the public.
What are the differences between the private sector and the government sector?
The two types of jobs have very different tendencies. The following explains their differences.
- Job security – As explained above, the two types of jobs also show a big difference in terms of job security. Government jobs provide more employment stability than private sector jobs do. Because the government will always exist without going out of business or merging with other companies, employees will always be needed. However, private sector jobs can change at any time. For example, if a company is restructured due to a merger with another company or closes its business due to economic problems, jobs may disappear.
- Employment benefits – There are benefits that all companies offer to their employees, but the ways in which they offer benefits can vary. Representative employment benefits for private-sector companies include salary increases, promotion opportunities, and bonus payments based on performance. However, the benefits provided by small private companies may be insufficient. Benefits of public sector jobs include job security, housing provision, and retirement pensions.
- Source of capital – Public sector institutions generally receive funding for projects from the government. The government can use taxes collected from individuals and businesses to fund them. On the other hand, private sector companies usually raise funds from the property of their owners, profits earned by the company, stock issuance, and loans.
- Industrial sector – These two types of jobs also show differences in the industrial sector. Public sector institutions that focus on providing public goods and services include education facilities, military facilities, and public transport, and infrastructure services. However, private sector companies, whose main purpose is to generate profits, have a wide variety of industries. Representative examples include financial services, manufacturing, and real estate.
In addition to the above description, the two types provide different working hours, reputations, job satisfaction, and purpose.
Conclusion
Choosing a job is one of the factors that most people should sincerely consider for their lives. Because for most people, a job is an essential factor in making a living. For this reason, jobs must be chosen carefully. There are some factors to be considered preferentially. Firstly, job applicants should evaluate their needs before applying for a job. For example, they should find out how much salary they need to maintain their lifestyles and consider what kind of work schedule they prefer. Secondly, they should recognize what they enjoy because it can help maximize work efficiency. Finally, they need to think about their career goals. It means that they need to consider what they hope to accomplish with their career. For instance, if they are interested in creating their own business later, a private sector job can be a good option. These factors should be considered with prudence in deciding future jobs.
References
Murray, J. (2021). Public Sector vs. Private Sector: What’s the Difference? [online] The Balance Small Business. Available at: https://www.thebalancesmb.com/public-sector-vs-private-sector-5097547 [Accessed 14 July 2022].
RAJPUT, F. (2021). What is Difference Between Private Jobs and Government Jobs? [online] Journal. Available at: https://vocal.media/journal/what-is-difference-between-private-jobs-and-government-jobs [Accessed 13 July 2022].
Surbhi, S. (2018). Difference Between Public Sector and Private Sector (with Comparison Chart) – Key Differences. [online] Key Differences. Available at: https://keydifferences.com/difference-between-public-sector-and-private-sector.html [Accessed 15 July 2022].
