This relationship between public and private labor costs here is very similar to what we find in parks. Most park agencies have about 80% labor costs, while ours for running similar facilities is between 30% and 40%.
The New York Times reports that labor currently represents 80 percent of the Postal Service’s expenses, while it accounts for 53 percent at United Parcel Service and only 32 percent at FedEx
The difference mainly lies both in productivity expectations as well as escaping civil service pay and benefits scales. The difference is typically NOT about number feet on the ground — in fact, private companies tend to have more customer contact people in the park than do state agencies.