New government statistics confirm that public sector workers earn more on average than those who work in the private sector.
The Treasury’s annual earnings survey has found that average pay for full-time employees rose by 1.3 per cent, to £620 per week (the equivalent of an annual salary of £32,240), between June 2012 and June 2013.
The average person in the public sector earned £676, while in the private sector that figure was £608.
Public sector workers also worked shorter hours. On average, they were at work for 37 hours, compared with 39 hours in the private sector.
Male public sector manual workers earned £581, compared with £499 in the private sector.
Their equivalents in non-manual jobs earned £838 (public) and £770 (private).
For women, manual workers earned £552 (public) and £399 (private). For non-manual women the figures were £620 (public) and £582 (private).
Public sector workers tend to be older than private sector workers.
Statistics in the UK, where the public sector workers also earn more, reveal that around 15 per cent of employees in the private sector are aged 16 to 24 compared with around 5 per cent of employees in the public sector – and around 44 per cent of public sector workers are aged 35 to 49 compared with around 38 per cent of private sector workers.
In the UK, the Office for National Statistics says that earnings tend to increase with age in both the public sector and the private sector.
Assuming the same sorts of conditions apply for the Isle of Man, that might be part of the explanation of why there is a difference.
However, one reason posited in the UK for public sector earning more than private sector, that a lot of manual jobs have been contracted out, would have less effect in the Isle of Man, which has not gone through that process in such a comprehensive programme of privatisation.
Overall, manual workers worked longer hours on average than non-manual. For men the figures were 39.2 hours for manual and 37.1 for non-manual. For women the figures were 37.2 and 35.8.
Meanwhile, the statistics also show that pay rises for Manx workers are not keeping pace with the UK.
And the amount of disposable income for people in the island is falling because average pay increases are lower than inflation.
Manx average earnings across the whole economy rose less than in the UK (1.3 per cent compared with 2.2 cent) to now stand at exactly the same as the UK figure.
The annual rate of inflation in the Isle of Man, as measured by the Retail Prices Index (RPI), showed an increase in December to 2.9 per cent up from 2.5 per cent in November.
The annual rate shown by the Consumer Prices Index (CPI), which excludes mortgage interest payments and household expenditure such as buildings insurance and is the measure the UK government tends to use, was 1.5 per cent in December 2013 compared with 1.2 per cent in November.
While people in the Isle of Man might pay less income tax than those in the UK, the question of whether people here have more disposable income than those across the water is determined by what they spend their money on.
Rent, fuel and food tend to be more expensive in the Isle of Man on average than in the UK and poorer people are likely to spend more, as a proportion of their income, on those basics than richer people.
They are being hit twice because inflation for rent and food is far outstripping the general rate of inflation.
So poorer people in work are more likely to be feeling the economic squeeze in the island than richer people.
Among other results were that median earnings (the earnings level which half of the full-time workforce exceeds) fell by 1.5 per cent to £504 (£26,208 per year).
This statistic removes the distorting effect of the super-rich on the average figure and suggests that, since average wages have risen but median ones have fallen, the gap between the rich and poor must be widening.
The median figures also show a greater disparity between the incomes of Manx people and those in the UK.
Overall, the median weekly wage for the Isle of Man is £504.11, while in the UK it was £517.50. For men, the figures are £531.47 (Isle of Man) and £556 (UK) and for women they’re £480 (Isle of Man) and £458.80 (UK), so Manxwomen are better off the UK women, but Manxmen are poorer than UK men.
That was also borne out when looking at averages.
While a man in the island earns £658.13 on average in a week, in the UK the figure is £676.70.
The figures for females are £562.20 in the island and £532.90 for the UK.
There was a slight widening of wage differences between the sexes, with the rates of average weekly earnings between males and females changing from 115.4 per cent in 2012 to 115.7 per cent.
Female average earnings are at 105.5 per cent of those of the UK.
Split into different sectors, the average male weekly wage varied from £432 in distributive trades, restaurants and hotels to £853 in financing, insurance and business services.
The figures were worked out after a sample of employees was drawn at the economic affairs division of the Treasury from income tax records and a questionnaire sent out to the last known employer of each of the selected employees.
Gross earnings were split into basic pay, overtime pay, incentive payments and shift and other payments.
The information related to the pay period including June 11, 2013.
The Treasury approached 35 public sector employers, all of which took part in the survey, and 707 private sector employers, 700 of which took part.
The UK figures relate to April rather than June and are subject to revision.