Public sector pay rises continue to lag well behind the private sector according to latest figures from the Office for National Statistics (ONS).
While average annual total pay growth for the private sector was 5.9% in April to June 2022 it was only 1.8% for the public sector. The gap will fuel demands by public sector unions for higher pay settlements. Local government employers have offered a flat rate rise of £1,925.
However in real terms, adjusted for inflation, average weekly earnings actually fell by a record 3% during April to June 2022, A larger fall on the year was last seen in 2009 at 4.5%.
The wholesaling, retailing, hotels and restaurants sector saw the largest pay growth at 7.7%, followed by the finance and business services sector and construction sector, both at 6.3%; partly because of strong bonus payments.
Average weekly earnings were estimated at £611 for total pay, and £568 for regular pay in June 2022.
Resolution Foundation senior economist Nye Cominetti, said: ‘Near double-digit inflation has brought about the biggest pay squeeze in Britain since 1977 as pay packets shrink by around 3%. The scale of this pay pain is even deeper than official figures suggest too, as pay growth estimates are still artificially boosted by the effects of the furlough scheme last year.’
This article originally appeared in The MJ (£).
