British pay holds at two-year low, survey shows


Incomes Data Research said the median pay settlement awarded by major employers held at 4% for the second month in a row. — Reuters

LONDON: Pay settlements awarded by British employers held at their lowest in two years in the three months to August, according to a survey that could reassure the Bank of England (BoE) as it considers whether to cut interest rates again.

Incomes Data Research (IDR) said yesterday that the median pay settlement awarded by major employers held at 4% for the second month in a row.

Median pay awards in the public sector stood at 4.5%, above those in the private sector which slowed to 4.1%.

“The differing outcomes in the private and public sectors reflect the cycle of pay between the two, with the public sector currently in the ‘catching-up’ phase, after a lengthy period in which pay awards lagged behind those in the private sector,” Zoe Woolacott, senior researcher at IDR, said.

Finance minister Rachel Reeves announced above-inflation pay increases worth £9.4bil (US$12.53bil) for public sector workers including teachers and doctors shortly after the Labour Party won a parliamentary election in July.

Official figures last month showed British private sector wage growth cooled to a more than two-year low of 4.9% in the three months to July.

The BoE is monitoring wage growth, and expects private-sector pay to slow to 3% in late 2025. — Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

Kelington posts RM33mil profit in 3Q24
Uptrend in performance for construction players
Guocoland braces for challenges
Hartanah Kenyalang seeks ACE Market IPO
Carimin wins five-year oil and gas job
Dexcom opens new RM2.8bil manufacturing facility in Penang
Heineken to sustain growth momentum
Sarawak’s infrastructure growth to boost KKB Engineering
Pioneering car chip design
Solarvest unit secures TNB contract

Others Also Read