MNI: UK Nov-Jan Pay Deals Highest Since March 2014: XpertHR

-UK Nov-Jan Pay Median Pay Deals 2.5%; Highest Since March 2014

By David Robinson

     LONDON (MNI) - UK median pay deals in the three months through January came

in at 2.5%, up from the longstanding 2.0% level and the highest reading since

March 2014, a survey by XpertHR found.

     The early signs are that the new year pay round is resulting in higher

average pay increases, although they are still lagging below headline inflation.

The January data in the XpertHR series covered only private sector deals, with

public sector pay agreements only set to come into force in April when the new

fiscal year starts.

     The Bank of England Monetary Policy Committee's central forecast is for a

pick-up in earnings growth this year. The BOE's February Inflation projections

were based on headline average weekly earnings growth rising to 3% in 2018 from

2.5% in 2017 and on up to 3.25% in 2019.

     The XpertHR survey lends some support to this assumption. Its survey found

just over half of pay awards were higher for the same employees this year

compared to last, with 22% of awards still at the 2% level.

     December data from the ONS, released Wednesday, showed total nominal wages

up 2.5% 3m y/y for the third straight month, courtesy of a strong 2.6% regular

pay single month showing in December - the strongest since November 2016. Real

wage growth, however, remained fixed in negative territory.  

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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