Policy Exchange is wrong on public-sector pay
It is misleading to compare private- with public-sector pay -- it’s not a like-for-like comparison.
By Nigel Stanley Published 18 June 2010 11:26
Policy Exchange has a new report out today on the public sector, and while it has tidied up its stats a little -- given the hammering that dodgy stats on the public sector have got in the past -- what the report says is still pretty misleading.
For Policy Exchange and the shrink-the-state right, every nurse, every doctor, every teacher is a drag on the economy. The rest of us know that they all play a vital role -- as do countless other public servants. Far from holding back the private sector, the public sector educates and trains its workforce, buys many of its goods and services, keeps its staff healthy and provides the infrastructure without which the UK would travel back to the 19th century.
Policy Exchange wants people to believe that public-sector wages have overtaken those in the private sector. This is simply not the case. In every year since 1984 -- the earliest year for which official statistics are available -- average hourly pay in the public sector has been higher than in the private sector. But this is because the public sector has a much greater proportion of skilled and professional workers such as teachers and doctors than the private sector.
In recent years this trend has intensified. Lower-paid jobs such as cleaners and care assistants have been privatised, while the big growth in public-sector employment under the last government was among professionals such as teachers and doctors.
To compare pay properly, you have to look at people doing similar jobs, but this is impossible, as jobs differ too much. However, you can compare the pay of people with similar qualifications. This shows that graduates earn somewhat less in the public sector while those with no qualifications earn a bit more. This is because the gap between those at the bottom and those at the top in the public sector is smaller than in the private sector. Most people would think this is a good thing.
Of course, they cannot resist citing higher levels of absence in the public sector, even though public-sector staff are more likely to work when they are ill.
And it takes chutzpah to report accurately the collapse in private-sector pension provision for most private-sector workers -- despite the retention of diamond-encrusted, platinum-plated pensions in Britain's top boardrooms -- as a reason for attacking public-sector pensions.
It would be equally logical to say that if public-sector workplaces were more dangerous than those in the private sector, this should be evened up until as many people were killed at work each year in the public sector.
Under the guise of all-round fairness, Policy Exchange seems to want to bring the worst kind of vulnerable, low-paid, no-rights employment into the public sector. We think that is a very strange notion of fairness.
Nigel Stanley is the TUC's head of campaigns and communications.
This blog is cross-posted from Touchstone.
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3 comments
The TRUTH about public sector wages is not to be found in any Right wing thinking news paper.
You basically get PROPAGANDA.
Truth and real statistics are not easy to come by as they do not sell newspapers.
Nat West Bank Pay rise last year 10 %
( whilst still in the midst of the RBS banking crisis, who own Nat West )
City bonuses this year up 40 % as average increase !
Public sector pay has always lagged and will always lag behind the private sector.
Every now and again society gets embarrassed with the low pay of nurses or teachers and they instigate a catch up review. Usually every 20 years ! In the meantime these people have their pay year on year eroded by inflation.
Though public sector job security may be greater.
I agree totally with the notion that we have too much education. not related to the benefits of society.
My brother has a degree in Science, never used it, achieved it in one year. What a waste of time, as he readily admits ! Wasted taxes !
We need a transformation in Education.
To create individuals who are encouraged to be independent free thinkers. team players and decision makers.
We have a sterile system in our schools based on so called 'invented ' standards ( levels ) that very few people, including teachers understand or actually agree with.
The real drag on the economy are the Universities, who have become so important and grown out of all context to the true needs of society.
The very successful HND and Tech Colleges were all closed or absorbed into Universities ~ cos the money was being fed in that direction ~ A BIG MISTAKE.
Labour got it wrong with its academic desire to set a target for Degree achievement. We need to let market conditions dictate the skill based requirement for degree level applicants.
And not artificially set a demand for it,
for no good purpose.
We are basically making our society too degree heavy.
Degrees do not produce ....
1/ Independent Thinkers
2/ Solution Focused Individuals
3/ Creative Thinkers
4/ Decision Makers
5/ Great Communicators
6/ Can Do People
7/ People with Great Work Ethics
8/ Applied/ Problem Solvers
9/ Cooperative Workers
10/ Entrepreneurs
etc
Sadly No A levels in these subjects !
" Of course, they cannot resist citing higher levels of absence in the public sector, even though public-sector staff are more likely to work when they are ill."
really? produce the evidence!
Utter tosh.
Of course every teacher isn't a drag on the economy but there is almost certainly a significant amount of needless drag. We have had to pay for FAR too many students to be educated in things that almost certainly will not benefit society. If the cost of higher education was shouldered by those that stand to gain or lose then we'd have spent closer to the optimal amount. Spending other people's money just isn't efficient. If these services are so good for the private sector then the private sector will pay for them (as they do in some instances when they are careful who they pay scholarships too) but they won't pay for them twice with taxes then cash.