PAY DATA
Gap between private and public sector pay awards persists
The gap between the level of pay settlements in the public and private sectors is continuing, according to the latest data from IDSPay.co.uk. Pay deals in the private sector are running at 2.6% (as measured by the median settlement level for the three months to the end of September) up from 2.5% in the three months to August. The comparable figure for the public sector remains at zero.
Just over half of the pay freezes monitored by IDS have been for public sector organisations. Some lower-paid workers in the public sector have received small “protection” increases, mostly worth £250 or between 1.2 and 2%, but these are in the minority. Meanwhile, some zero awards have also been recorded in the private and not-for-profit sectors, as have lower awards in the 0.1 to 1.99% range, notably in the fast food, pubs and restaurants sector and parts of manufacturing.
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Summary of key settlement data
For the three months to the end of September 2011, based on 57 settlements covering 1.8 million employees in total, the key IDS statistics are these:
Whole economy median: 2.4%
Whole economy average: 2.2%
Whole economy inter-quartile range: 1.5% to 3.0%
Private sector median: 2.6%
Manufacturing and production median: 3.0%
Private services median: 2.4%
Public sector median: 0.0%
A final word
“The different experiences of the public and private sectors are shaping the difference between the level of pay settlements between the two sectors. And while pay awards are ahead in the private sector, they are still some way behind inflation, even in manufacturing where pay awards are higher in comparison to other sectors. Our own figures on pay settlement levels appear to reflect official statistics on average weekly earnings from the ONS which also show a gap between the private and public sectors.” - Ken Mulkearn, Editor, IDS Pay Report.
Want to know more?
IDSPay.co.uk is an online source of all the remuneration data collected by IDS, on pay settlements, pay levels and executive compensation. Visit www.IDSPay.co.uk to see a demonstration or to sign up for a free trial.
IDS Pay Report, published fortnightly, is the UK's “leading source of research and analysis on pay and benefits across the economy”. For details visit www.incomesdata.co.uk or tel: 0845 600 9355.
Incomes Data Services is the “leading UK information and research service on employment issues, providing a range of publications for employers, trade unions, government departments and other agencies”. For more information visit www.incomesdata.co.uk.