Having been in the PR profession for nearly 17 years, I have been able to experience working for government agencies and as a freelancer. While I may not be the best person to post on this topic as my experiences are probably different from most practitioners, I wanted to put my thoughts out there.
I have held full-time positions at several state agencies over the nearly 18 years since I graduated from Ohio Northern University. I began doing freelance work when I was in-between positions and did not want to rely only on unemployment wages. It was also a great way to keep honing my communication skills and relationships with media personnel.
During my various employment ventures, I realized for me having a full-time job for an organization was better. While I really enjoyed learning about various topics and having new projects thrown at me, I prefer the stability of a government entity. I also like not being tasked with keeping track of what hours I have spent on which project/client or having to log time just to take a phone call. However, I do see advantages to either working freelance or owning your own business such as setting your own hours and being able to choose whether to take on a project/client or not.
So really, while there is a choice to be made between a permanent position somewhere and being a freelance practitioner, there is no right or wrong decision. For some a permanent position is better, for others the best choice is freelance work.
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