I work for the government (Department of the Navy) and the job security is really nice, especially with the economy crashing. I'm on 25% mandatory overtime while other people are losing their jobs on the outside. The healthcare benefits are nice, but I can't say that the insurance is the best. The last year our rates have gone up and what is covered seems to have gone down.
I wouldn't recommend going into business with your friend, working with friends when you have expectations can lead to former friends and disappointment. If you think the Home Depot gig will last a while I'd take that over promises from a friend. There is a say that you shouldn't do business with family and friends are just the next step.
My uncle was "let go" by a long time friend a while back, it sounded like an ugly situation. If the economy continues to struggle another shop may close making it difficult to expand or advance.