§ Mr. Beaumont-Darkasked the Chancellor of the Exchequer if figures are available to compare public sector pay relative to private sector earnings which give comparisons with previous years.
§ Sir Geoffrey HoweIt is possible to compare relative earnings in the public and private sectors for both manual and non-manual workers only for the period since 1970. It is estimated that public sector earnings levels moved in relation to private sector levels between 1970–72 and 1980 as shown in the table below.
Public sector earnings as a percentage of private sector earnings in 1970–72 and 1980 (full-time adult males, pay unaffected by absence) 1970–72 (average) 1980 percentage (improvement) Manual workers 95 104 (+9) Non-manual workers 103 102(*104) (*+l) Source: New Earnings Survey 1980.
*Adjusted to include the increase for teachers resulting from the report of the Standing Commission on pay comparability, which was paid from September 1980.
Before 1970 the statistics collected do not permit precise comparisons between public and private sector earnings. But the evidence available indicates that, for manual workers at least, the relationship between public and private sectors was fairly stable, and that 1970–72 represents the most favourable position for the public sector relative to the private sector since 1950 (see National Institute Economic Review, November 1975, p. 63).