Expert concerned: Pay rising more in the public sector than the private

Regional and municipal salaries outstripped private pay, but state salaries rose less

TheCopenhagenPost

Nov 30, 2015

New figures from the national statistics office show that pay is increasing faster in the public sector than the private sector, which is cause for concern according to some, Børsen reports.

In the third quarter there was a 1.5 percent increase in salaries in the private sector, whereas regional employees in the public sector saw a 2.5 percent increase and municipal employees’ pay rose by 1.9 percent. However, the salary of those employed by the central government increased by just 0.8 percent.

Competitiveness could suffer
But Tore Stramer, the chief analyst at Nykredit, sees higher pay in the regions and municipalities as a risk for the economy at large.

“It’s important going forward to keep a tight leash on public pay. It’s not appropriate that public pay growth leaves private pay growth in the dust so much,” he said.

“It increases the risk that the public sector contributes to increasing pay pressure on the private sector at a time when there should continue to be focus on keeping competitiveness on track.”

Stramer also points out that public spending is also close to exceeding the EU’s limits.

“Public spending is currently balancing on the edge of what is permissible within the EU co-operation,” he said.

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