22 February 2002
According to IDS, average earnings growth in the public sector during the final quarter of 2001 was 5.2%, which compares very favourably with the 2.9% increase in the private sector. The economic downturn and subsequent decrease in annual bonuses had adversely affected private sector deals.
The research group predicts that the government's determination to overcome recruitment and retention problems in the public sector will ensure that the trend continues.
The report states that teachers and health service workers are likely to receive above-inflation pay deals again next year as part of the Treasury's long-term plan to encourage forward planning in the sector. 'Almost all of the long-term deals that we have examined involve substantial uplifts to pay over the lifetime of the agreements, at a time of very low inflation,' it added.
Education and health workers secured increases of 3.5% and 3.6% respectively as part of this year's pay negotiations.
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