Pay gap widens between public and private sectors

A clear gap has emerged between the level of pay awards in the public and private sectors due to cutbacks in the public sector and pay freezes, according to IDSPay.co.uk.

A clear gap has emerged between the level of pay awards in the public and private sectors due to cutbacks in the public sector and pay freezes, according to IDSPay.co.uk.

The median pay award for the private sector in the three months to the end of April is 3 per cent, while in the public sector it is zero, according to the analysis.

While the average pay award is 2.3 per cent, the weighted average in the three months to the end of April is just 0.1 per cent, reflecting the impact of low or zero awards at public sector organisations, which make up the largest employee groups in the sample, says IDSPay.co.uk.

It says that in the private sector settlement levels have risen gently as the economy recovers, though they still remain below the level of inflation overall.

Ken Mulkearn, Editor of IDS Pay Report, said: ‘While our headline figures show that pay settlements remain stable, the whole-economy median obscures a wider reality and clear differences between the public and private sectors. The latest figures show that private sector pay awards are where we thought they would be this time of the year, reflecting a degree of recovery in profitability and higher levels of inflation. However, the picture for 2011 is not yet complete and the outlook is difficult to assess."





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