We often hear about ‘big government’ and how it’s getting bigger.   I wanted to check the data to see if it’s hyperbole or reality.   Its not hyperbole.   According to official government data (ironic) it turns out that government - Federal, state, local and military - has the single highest payroll of any “industry.” The table below is from the Bureau of Economic Analysis’ official income data for 2008 (as of the 3rd quarter) and lists the major industry groups by total payroll.   Across all industries, the total wage disbursements were $6.5 trillion dollars.

Below is the BEA payroll breakdown.  The numbers are in millions and annualized, so you can see that government is the only “business” to pay out more than $1 trillion dollars in wages in 2008.

• Farm wage and salary disbursements $20,802
• Forestry, fishing, related activities, and other $19,415
• Mining $66,841
• Utilities $47,483
• Construction $368,519
• Manufacturing $744,233
• Wholesale trade $378,038
• Retail trade $423,009
• Transportation and warehousing $198,907
• Information $220,021
• Finance and insurance $517,190
• Real estate and rental and leasing $97,229
• Professional and technical services $622,908
• Management of companies and enterprises $181,255
• Administrative and waste services $265,270
• Educational services $109,385
• Health care and social assistance $680,833
• Arts, entertainment, and recreation $67,310
• Accommodation and food services $211,175
• Other services, except public administration $201,977
• Government and government enterprises $1,122,604

Two things surprise me in these numbers:

• Government payrolls are more than twice as large as the much-maligned financial industry, and
• Manufacturing is still the second largest industry in terms of payroll.

Not surprisingly, Washington D.C. and Maryland enjoyed some of the biggest income gains last year as evidenced by the BEA’s map below:

Apple CEO Steve Jobs directly addressing the persistent rumors about his health which have moved Apple (AAPL) shares lately.   Here is the letter he sent out:

Dear Apple Community,

For the first time in a decade, I’m getting to spend the holiday season with my family, rather than intensely preparing for a Macworld keynote. Unfortunately, my decision to have Phil deliver the Macworld keynote set off another flurry of rumors about my health, with some even publishing stories of me on my deathbed.

I’ve decided to share something very personal with the Apple community so that we can all relax and enjoy the show tomorrow. As many of you know, I have been losing weight throughout 2008. The reason has been a mystery to me and my doctors. A few weeks ago, I decided that getting to the root cause of this and reversing it needed to become my #1 priority. Fortunately, after further testing, my doctors think they have found the cause — a hormone imbalance that has been “robbing” me of the proteins my body needs to be healthy. Sophisticated blood tests have confirmed this diagnosis. The remedy for this nutritional problem is relatively simple and straightforward, and I’ve already begun treatment. But, just like I didn’t lose this much weight and body mass in a week or a month, my doctors expect it will take me until late this Spring to regain it. I will continue as Apple’s CEO during my recovery.

I have given more than my all to Apple for the past 11 years now. I will be the first one to step up and tell our Board of Directors if I can no longer continue to fulfill my duties as Apple’s CEO. I hope the Apple community will support me in my recovery and know that I will always put what is best for Apple first. So now I’ve said more than I wanted to say, and all that I am going to say, about this.

Steve