Public Sector Workers Paid 8% More Than Their Private Sector Counterparts, Figures Show

Money

First Posted: 06/07/11 08:01 BST Updated: 04/09/11 11:12 BST

PRESS ASSOCIATION - The gap in average earnings between employees in the private and public sectors has widened, with state workers paid nearly 8% more last April, figures show.

Public sector employees were paid on average 7.8% more than their counterparts in the private sector in April 2010, the Office for National Statistics (ONS) said.

In contrast, the pay difference between the two sectors was estimated at 5.3% in 2007.

The findings come just days after hundreds of thousands of teachers, lecturers, civil servants and other workers walked out in protest at changes to their pensions.

The ONS said there was a higher proportion of higher-skilled jobs in the public sector, and the gap had widened over the past decade as lower-skilled jobs had been outsourced to the private sector.

Another factor behind the difference is that the state sector contains a higher proportion of older employees, whose earnings have increased over time.

Furthermore, more people in the public sector have a degree. In 2010, some 38% of workers had a degree or equivalent qualification in the public sector, compared with 23% in the private sector.

But when employees with a degree are compared, those in the public sector earned around 5.7% less than those in the private sector, figures showed.

The gap between the top 5 of earners is greater in the private sector than the public sector, the ONS said.

The analysis, drawn from two pieces of research about pay and the UK workforce, does not include other forms of remuneration, such as pension contributions, company cars and health insurance. Moreover, the timing of the research meant that payments made in the normal bonus season of January to March were not taken into account.

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PRESS ASSOCIATION - The gap in average earnings between employees in the private and public sectors has widened, with state workers paid nearly 8% more last April, figures show. Public sector emplo...
PRESS ASSOCIATION - The gap in average earnings between employees in the private and public sectors has widened, with state workers paid nearly 8% more last April, figures show. Public sector emplo...
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soitgoes12
Thou shalt keep thy religion to thyself
05:37 PM on 07/07/2011
"
Another factor behind the difference is that the state sector contains a higher proportion of older employees, whose earnings have increased over time.
Furthermore, more people in the public sector have a degree. In 2010, some 38% of workers had a degree or equivalent qualification in the public sector, compared with 23% in the private sector.
But when employees with a degree are compared, those in the public sector earned around 5.7% less than those in the private sector, figures showed."

In case some of you missed this part while panning the headline only.
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HUFFPOST SUPER USER
saltpeter
Ayn Rand is the L. Ron Hubbard of fiscal ideology
04:48 PM on 07/07/2011
Same bogus statistic being touted in the US. Sorry but PUBLIC SECTOR WORKERS tend to be more educated and have jobs that require a higher degree of professionalism than the average PRIVATE SECTOR job. To vaguely compare them while not comparing comparable jobs with comparable jobs in both sectors is intellectually dishonest. Just like trying to convince PUBLIC SECTOR workers who went decades collecting lower rates than their PRIVATE SECTOR counterparts that they somehow got it good even though benefits are being reduced and raises are being frozen.

ALL WORKERS are being UNDERPAID in comparison with CEOs and EXECUTIVES and until both Europe and the US realize that it is their CONSUMERS (ie well-paid workers) that make their economy go around and not their handful of millionaires and billionaires, then we will continue to have economic stagnation.
06:39 PM on 07/07/2011
Well said.
03:23 PM on 07/07/2011
The point is being missed. Employers are laughing all the way to the bank while employees in both sectors fight with each other over who should be payed less. If the private sector employees see an imbalance in wages, then they need to demand higher wages. If you think private sector employers are the good guys, then you haven't been paying attention.
05:58 PM on 07/07/2011
You should try demanding higher wages in the private sector and see where it gets you.
06:35 PM on 07/07/2011
That's what unions are for.
08:07 PM on 07/07/2011
I couldn't agree more
12:55 PM on 07/07/2011
basically, we are paid less than equivalents but more than shop assistants. Not mant shop assistants in public sector.
11:09 AM on 07/07/2011
Have I stumbled onto The Daily Mail website?

I switched to the public sector 5 years ago doing the same as I did in the private sphere.
I took a paycut (I disagreed with some of my former employers methods).
5 years down the line I am now almost at the same level as the colleagues I left behind (less the privatesector benefits and perks), even taking into consideration the public sector pay freeze.
03:58 PM on 07/07/2011
"I am now almost at the same level as the colleagues I left behind (less the privatesec­tor benefits and perks)"
But you haven't mentioned the extra holidays, shorter hours and the 14% pension contribution your public sector employer is making. That'll put ahead of your private sector ex colleagues.
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wa-st-concerned
07:36 PM on 07/07/2011
Those additional things are also NOT considered in the private sector wages.....

Try apples to apples.....
09:21 PM on 07/07/2011
No I didn't because I don't get any extra leave than I did with my previous employer - 20 days plus bank holidays (which I had the option to work at double time plus a day off previously).
In the public sector I get paid for 37 hours - no more no less, but work more which admittedly I can take in time owing but very rarely do - in my previous private sector job I was paid for 37 hours and anything extra was paid as overtime.
Also in my private sector job I had perks - company laptop and mobile phone, free city centre parking, bonuses, paid staff Christmas party, private healthcare, pension plan (until it was cancelled in a cost cutting exercise)
It has taken me 5 years to get anywhere close to my ex-colleagues basic salary and that is more because of the economic downturn that I have had negotiated pay rises (now frozen) whereas my previous employer cancelled all minion pay rises (strangely the execs were unaffected).
I hope that makes things a little clearer.
09:26 AM on 07/07/2011
So your headline is 'Public Sector Workers Paid 8% More Than Their Private Sector Counterparts, Figures Show'
But the reality is they don't - they earn less.
Huffington Post is just another paper!!!!!
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Sergeant2
Proud Marine, Proud Papa, Proud Grandpapa, Proud D
04:44 AM on 07/07/2011
Hello England, I'm a long time reader of the Huffington Post here in America and I'm looking forward to learning as much as possible about the issues that the average Briton deals with on a daily basis. I see from this article that one of your political party's (I don't know which) are pitting Public sector workers against Private sector workers in which the inevitable outcome will be lower wages and less benefits for both, while increasing profits for Corporations. We are dealing with the same thing here in America. Here in America we (Democrats) refer to it as a race to the bottom. I look forward to learning more about your Great Country and its people. Adios Amigos.
11:11 AM on 07/07/2011
England is only one part of Britain. Our country consists of England, Scotland, Wales and Northern Ireland.
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Errrlord
12:30 AM on 07/07/2011
This headline is like a credit card contract you have to read the small print. While saying public sector workers are paid more, it also says that most lower paid jobs in the public sector has being ousourced to the private sector. The NHS is a good eample while all the skilled staff (Doctors Nuses Technicians Physios dieticians e.t.c.) continued to be paid by the public sector the lower skilled staff like(Mantanance staff, cleaners, porters, HCA,s, security staff e.t.c.) have all being moved to the private sector.Graduate level jobs in the public sector pays less than in the private sector counterparts. It also says if compared job for job public sector workers are earn less but most people wont get past the headline thereby giving the impression that a teacher in the public sector earns 8% more than a teacher in the private sector.
10:00 PM on 07/06/2011
The public sector should not be earning more than the private sector - period.

If you want to earn loads of money then join the 'real world' and fight in the business world, work your way up where you have the potential to get rich.

If you want a half-decent wage doing a worthwhile job with a decent pension then it should be the Public Sector - I always assumed that the Public Sector wasn't very well paid but you at least got a decent pension out of it.

Now the statistics show that now only do they get a decent pension but are paid more than workers in the 'real world'.

They shouldn't be striking but should be getting their heads down and working their butts off to give the general public much better value for money.
11:10 AM on 07/07/2011
Er, the public sector aren't being paid more than the private sector when you compare like-for-like jobs and skills though. Read the article, not the headline :).

As I said below, the headline is about as informative as saying "Bankers Paid More Than Flower Sellers."
07:45 PM on 07/07/2011
Good post,I completely agree.
07:43 PM on 07/06/2011
Wage freezes, cuts, high inflation, poverty, suffering, we're all being led by the nose into the slave ships folks, get off your backsides together and act or this is where your going to end up, both private and public sector WORKERS alongside the jobless/disabled/homeless, in their eyes your an expendable commodity to be used and abused before your discarded, bickering amongst yourselves is giving those in power a right good laugh. Do you really think Osbourne, Cameron, Clegg or Ed (I'm useless and have no chance)Millibland care a jot for the worker, get real and wake up the lot of you before its all over.
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Stefan Bast
Just a punk from Hamburg, Germany.
06:45 PM on 07/06/2011
"Who is paid more, public or private sector workers?"

That is obviously a trick question. Both are paid less!
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MJinCanada
Safe from zombies until my 2nd cup of coffee
08:24 PM on 07/06/2011
Precisely! Public sector workers who have the education and time on the job get paid more than the private sector workers who don't have the education or job security and thus get rolled over and replaced by lower paid new staff. But educated public sector workers don't make as much as their equivalents in the private sector.
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Freddie27
Liberal Gay Jewish Atheist
06:34 PM on 07/06/2011
This is very interesting research. I was always under the impression that the deal between public sector workers and the government was that public sector workers accepted lower pay than the private sector in return for more generous pensions and retirement benefits. It seems that while private sector workers have accepted pay freezes over the last few years, public sector workers have seen their pay rise. This is unaffordable in the current economic climate and makes me much more amenable than I had been before to the government's reforms of public sector workers' pensions and retirement age. Having said that, 68 is an absurd retirement age for teachers.
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Stefan Bast
Just a punk from Hamburg, Germany.
06:48 PM on 07/06/2011
But isn't one of the main causes for the "current economic climate", that US pay is stagnant since at least the 1980s, thereby choking the domestic market?
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MJinCanada
Safe from zombies until my 2nd cup of coffee
08:25 PM on 07/06/2011
Or perhaps the real problem is that private sector employees are getting screwed.

You don't improve your own condition by shooting someone else down.
08:56 PM on 07/06/2011
But it helps the private sector employers if they can make the public sector the enemy, rather than than themselves, now it seems this is also government policy and it is pushed through the compliant media, e.g. Daily Mail and the Murdoch empire, and we all know how morally correct they are!
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WWII
Former college Dem to SMB ownin' Conservative
05:27 PM on 07/06/2011
Benefits for votes isn't fair to the private sector either.
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HUFFPOST COMMUNITY MODERATOR
missjulz
05:17 PM on 07/06/2011
Unless you're after a race to the bottom the way to view this is:

The problem is in the private sector pay.
06:35 PM on 07/06/2011
A race to the bottom is capitalism's end-game.
08:57 PM on 07/06/2011
They are nearly there with this government.
04:28 PM on 07/06/2011
These statistics bear little relevance to the problem at hand.

The important issue is not average salaries, but the top-end salaries. The money given to the highly skilled and highly valued workers, who perform the most important roles.

These workers are valued in both the public and private sector. In the private sector, companies are willing to pay a lot of money to get these workers. In the public sector, these workers face a mountain of bureaucracy and a "do your time" attitude. Where do you think they end up going?

The word meritocracy is an unpleasant, overused, and misused word, but unfortunately it is precisely what the public sector needs to become. There need to be more incentives for the highly skilled. The civil service is already an unappealing place to go for skilled workers. To cut salaries and the final salary pension (the one silver lining in a very grey cloud) is only going to turn away more of these highly desirable workers.

So, the result of this situation is that the workers that are really vital to the civil service end up going to the private sector. Many become consultants. Private sector companies then turn around and sells these workers back to the public sector as consultants, at ten times their salary, pocketing the difference.

These proposed cuts may reduce 'resource' costs in the short term, but it will increase dependence on private sector consultants and the costs therefore incurred.
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Freddie27
Liberal Gay Jewish Atheist
06:35 PM on 07/06/2011
Proud to be your first fan!
08:59 PM on 07/06/2011
Fanned and Faved!