Basically, and in my opinion it is about time the "get a job in the states and your sorted for life" got knocked down to reality.
I believe that is already happening.
As far as I can see, most States jobs, pay about the same as the same job in the private sector (without taking pensions in to consideration). That would be jobs advertised. There may well be workers, who have been there a long time, who have more favorable contracts.
Also, I think the States are using sub-contractors far more than they used to, especially if you include Jersey Water, JT, and the JEC.
Employees of their sub-contractors are more easily laid-off, etc.