Week 26, 2011: UK Average Weekly Earnings

Summary: Public sector unions went on strike in the UK on Thursday (30th June) over planned reforms to their pensions. They may find little sympathy in the private sector, where average weekly earnings are almost £50 less - and the gap is growing.

What does the chart show? The red and blue lines show the average nominal weekly earnings for people in the public and private sector respectively, measured by month. This is purely the amount of money taken home each month, not real spending power, as inflation has not been taken into account. The grey line is the difference between the two, measured against the right hand axis on a smaller scale to make it easier to see how the difference has changed over the past eleven years.

Why is the chart interesting? The gap between public and private sector average pay has widened since 2000, when both were earning around the same amount per week. Since 2008, private sector nominal pay has flattened off, while public sector pay has continued to rise, leaving the average difference between the two now at almost £50 per week. It is little surprise that there is limited sympathy from the private sector over public sector complaints that their pensions are being reformed to bring them more in line with private sector equivalents.