William Eichler 13 March 2017

Public sector workers earn more than their private sector peers, analysis reveals

Public sector workers earn more than their private sector peers, analysis reveals image

Public sector workers are still paid more than their private sector counterparts despite nearly a decade of central government cuts, financial experts say.

A new report by the Institute of Fiscal Studies (IFS) has revealed that during the financial crisis the pay premium experienced by public sector workers relative to those in the private sector grew from 3.7% in 2006-07 to 6% in 2010-11.

However, following the squeeze on public sector pay since 2010-11, this gap has come down to about 3.6% in 2015-16 - just 0.1% below pre-crisis levels.

Despite the fact that public sector workers are still paid more on average than their private sector counterparts, the report’s author Luke Sibieta warned ‘public sector pay is set to decline more rapidly relative to that in the private sector.’

The IFS’ report, funded and published by the Office of Manpower Economics, also discovered there was little change in the educational achievement of new graduate entrants to teaching and health.

This may not continue, however, if the public sector squeeze continues, Mr Sibieta said.

‘Despite the squeeze on the pay and pensions of public sector workers since 2010, there has been no decline in the prior educational achievement of graduates going into teaching or health occupations,’ he said.

‘However, between 2015 and 2020 public sector pay is set to decline more rapidly relative to that in the private sector. It is hard to believe this won’t affect the willingness of highly qualified individuals to choose these occupations.’

Developing a cohesive council workforce image

Developing a cohesive council workforce

With council workers, increasingly being asked to deliver more with less, Alexander Carlton discusses the role of technology in creating a cohesive workforce.
Re-write the rules of recruitment image

Re-write the rules of recruitment

Anne-Marie Scott offers her predictions for public sector recruitment challenges for 2020 and asks, ‘how do we recruit the right candidates?’
SIGN UP
For your free daily news bulletin
Highways jobs

Assistant Director Property

East Sussex County Council
Up to £86,000 (pay award pending)
Your track record of leading change will equip you to position Property Services as a true, collaborative partner delivering a... East Sussex
Recuriter: East Sussex County Council

Hylands Manager

Chelmsford City Council
Grade 10 - Starting at £43,836 per annum and rising to £48,309
This is a rare and exciting opportunity for an exceptional candidate to create and deliver a vision for Hylands House to ensure it can reach it’s f... Chelmsford, Essex
Recuriter: Chelmsford City Council

Assistant Traffic Management & Road Safety Engineer

North Yorkshire County Council
£22,021 to £26,999
We are looking for an Assistant Engineer to join our Traffic Engineering team. The Traffic Engineering Team forms part of... Northallerton, North Yorkshire
Recuriter: North Yorkshire County Council

Regulatory Lawyer Solicitor - Selby

Selby District Council
£32,029 to £42,683 pro rata.
We are looking for a Solicitor/Barrister who can join our supportive team to provide legal support to Selby District Council and... Selby, North Yorkshire
Recuriter: Selby District Council

Trainee Solicitor

North Yorkshire County Council
£22,021 to £24,313
To be successful you must... Northallerton, North Yorkshire
Recuriter: North Yorkshire County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue