{"id":418,"date":"2011-07-05T12:58:26","date_gmt":"2011-07-05T12:58:26","guid":{"rendered":"http:\/\/www.the-finance-zone.co.uk\/?p=418"},"modified":"2011-07-05T12:58:26","modified_gmt":"2011-07-05T12:58:26","slug":"pay-gap-between-public-and-private-sectors-widens","status":"publish","type":"post","link":"https:\/\/the-finance-zone.co.uk\/index.php\/2011\/07\/05\/pay-gap-between-public-and-private-sectors-widens\/","title":{"rendered":"Pay gap between public and private sectors &#8216;widens&#8217;"},"content":{"rendered":"<p>The pay gap between workers in the public sector and those in the private sector has widened, statistics show.<\/p>\n<p>Public sector employees were paid 7.8% more on average than private sector staff in April 2010, the Office for National Statistics (ONS) said.<\/p>\n<p>This was a bigger gap than the 5.3% difference in 2007, the figures show.<\/p>\n<p>Other benefits such as bonuses and pensions could alter the gap. The ONS added that many lower skilled jobs had been outsourced to the private sector.<\/p>\n<p>Other factors that could account for commanding higher pay were the average age of public sector workers, and their qualifications.<\/p>\n<p>The statistics are likely to feed into the debate and dispute over public sector pensions, which led to a walk-out by teachers and some other public sector workers last week.<\/p>\n<p>Timing<\/p>\n<p>The analysis is drawn from two pieces of research from the ONS about pay and the UK workforce.<\/p>\n<p>Simon Gompertz Personal finance correspondent, BBC News<\/p>\n<p>Critics of the public sector will be grinding their teeth at the sight of the pay gap widening even further.<\/p>\n<p>This is extra ammunition for those calling for cuts and lower pensions.<\/p>\n<p>However, the bald figures come with a health warning.<\/p>\n<p>After years of contracting out, staff are more likely to be teachers or nurses than cleaners and caterers and many more have degrees.<\/p>\n<p>Statisticians have to try to adjust for that.<\/p>\n<p>Plus, they warn that most private sector bonuses and perks are not counted and nor are self-employed lawyers, businessmen and entrepreneurs.<\/p>\n<p>It does not include some factors that could influence people&#8217;s remuneration and standard of living, such as pension contributions, company cars and health insurance.<\/p>\n<p>The timing of the research, related to April, meant that payments made in the bonus season of January to March were ignored &#8211; as were the earnings of the self-employed.<\/p>\n<p>Key to the difference in pay was the higher proportion of higher-paid jobs in the public sector, the ONS said.<\/p>\n<p>Over the past 10 years, the trend for low-skilled jobs to be outsourced to the private sector has continued, pushing up the average wage among public sector workers.<\/p>\n<p>The public sector also employed a larger proportion of older workers, whose pay has increased over time.<\/p>\n<p>In 2010, some 38% of workers had a degree or equivalent qualification in the public sector, compared with 23% in the private sector.<\/p>\n<p>Comparing the pay of these graduates flips the pay gap around, with public sector workers earning 5.7% less than those in the private sector.<\/p>\n<p>Within the two sectors, the gap between the highest earners &#8211; in the top 5% &#8211; and the lowest 5% of earners is greater in the private sector than in the public sector.<\/p>\n<p>&#8220;What the figures show is that the public sector is fairer than the private sector,&#8221; said TUC general secretary Brendan Barber.<\/p>\n<p>&#8220;Public sector high-flyers are paid 6% less than those at the top of the private sector, while those in less skilled jobs on lower pay earn 6% more in the public sector.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pay gap between workers in the public sector and those in the private sector has widened, statistics show. Public<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[9,38],"tags":[],"class_list":["post-418","post","type-post","status-publish","format-standard","hentry","category-companies","category-public-sector"],"_links":{"self":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=418"}],"version-history":[{"count":0,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/418\/revisions"}],"wp:attachment":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}