Earlier quoted context omitted.
Not just competitive, but better paying. Take Taiwan and other East Asian countries—government service is desirable, high paying, and a really prestigious job. And lo and behold, their government services really do work very well.
This doesn't always work out. Case in point with Greece. Decades of cushy government jobs and tons of people flocking to those positions to be lazy and do nothing, with policies that amount to tenure so they'll never be fired. I do agree that government jobs should be more competitive in the job market, just with caution.
You've identified the problem.