Gap Narrows Between Public And Private Sector Pay But Large Divergence Still Remains

The gap between public sector and private sector pay has narrowed here in Northern Ireland recently, but there is still quite an astonishing gap, with public sector workers on average being paid 30% more than their private sector counterparts. And that is more than any other region of the UK. On top of that the real value of wages has dropped faster than any other time on record, largely due to the rising cost of living.

Real Weekly Earnings Have Fallen 4.5%

Real weekly earnings in Northern Ireland fell 4.5% last year. Speaking about these statistics from the Northern Ireland Statistics and Research Agency (NISRA), Ulster Bank chief economist Richard Ramsey is quoted in an article in the Belfast Telegraph saying:

“The 7.1% year-on-year real terms fall in full-time public sector median earnings took the April 2022 annual wage to £34,361… that represents the lowest full-time public sector median wage since 2000,” he said.

He went on to say:

“The latest Northern Ireland earnings survey reveals the impact of the cost of living crisis on household incomes… a look beneath the headlines reveals that while the scale of the recent fall in real earnings is unprecedented the trend in falling real terms earnings is not – and is expected to continue for the foreseeable future.

“Today’s release highlights that Northern Ireland’s poor earnings growth performance continues and without improvements in productivity this trend is set to continue.”

Gender Pay Gap In Favour Of Women

One interesting statistic coming forth is that there is a 4.6% difference in pay gaps in favour of women, even though men on average earn a total of £13.99 an hour with women on £12.82 an hour. In the same article, according to the Office for National Statistics, it says that:

“in the case of Northern Ireland in particular, the gender pay gap is affected by a higher proportion of women working in the public sector where pay rates for some jobs are higher than in the private sector”.

The research says the gender pay gap is “calculated as the difference between average hourly earnings (excluding overtime) of men and women as a proportion of men’s average hourly earnings (excluding overtime)”.

“It is a measure across all jobs in the UK, not of the difference in pay between men and women for doing the same job.”

Overall the current economic conditions are proving difficult for households, workers and employers, with no signs of any positive news on the horizon.