Public sector pay racing ahead in the recession?

Posted on | January 6, 2010 | Author: | jont | No Comments

According to a report in the Sunday Times published on Sunday 3^rd January 2010 “Public sector workers earn 7% more on average than their peers in the private sector — a pay gulf that has more than doubled since the recession began.”

Figures quoted from the ONS (Office for National Statistics) show that the average annual earnings of public sector workers rose to £22,405 during 2009, compared with £20,988 for private sector workers. They go on to suggest that the public sector workers have enjoyed a “golden age” during the last decade during which salaries and add-on’s such as pensions and holidays have grown substantially against those offered in the private sector.

Current figures suggest that private sector salaries are rising at an average of 1.1% during these challenging times whilst the public sector wage bill is increasing at 2.8%.

Analysis at this level of salaries and perks is always “interesting” when you consider that the Public sector employs roughly 6 Million people or 20% of the workforce. As in any basket you would imagine that many people are actually earning below the average with a not insignificant number earning a large multiplier of the £22.4k quoted.

In previous Arras People Project Management Benchmark reports we have always seen a differential between the Public and Private sector in terms of pay, rewards and work life balance. When compared to the ONS average salaries we see a large proportion of the PPM community earning substantially more than the UK average.

This year we look forward to seeing at a micro level how the PPM community has fared against the average when we publish the 5^th Arras People Project Management Benchmark report. As ever we are dependent upon the UK PPM community to help us by completing the annual survey from which the report is compiled.

If you haven’t yet given your perspective on the marketplace please visit http://www.arraspeople.co.uk/PMReport/ where you will find the survey.

The full Sunday Times article can be seen on-line at http://business.timesonline.co.uk/tol/business/industry_sectors/public_sector/article6974029.ece

Related posts:

1. Book Review – Public-Sector Project Management #pmot
2. Permanent placements in Dec 09 UP whilst one in three workers ‘ready for change’!
3. Final chance to have your say
4. The Survey For Project Managers To Close Wednesday
5. PBR 2009 into PMBR 2010

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