A cap on public servants’ wages growth imposed for almost a decade by the NSW government has stifled pay increases for a host of private sector workers across the state.

A study by analytics firm AlphaBeta reviewed wages growth in private sector occupations which have a “high connection” to the public sector – such as jobs in education and health – and compared that to wages in occupations with less connection to the public sector – such as construction and retail.

Treasurer Dominic Perrottet defends public sector wage caps but a new study finds they suppress wages across the economy

Treasurer Dominic Perrottet defends public sector wage caps but a new study finds they suppress wages across the economy Credit:AAP

It revealed that since a 2.5 per cent annual growth cap on public sector wages was introduced in 2011, private sector workers in occupations with a high connection to the public sector had wages growth one third slower than jobs with little connection to the public sector.

Private sector occupations affected by slower wage growth due to the public sector cap included private school teachers, vocational trainers, child carers, personal carers, administrators, information officers, security workers, nurses, midwives and other health workers.



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