UK June-August Pay Awards Steady At Median 2%: XpertHR

By Jamie Satchithanantham

     LONDON (MNI) - UK pay deals held steady at a median 2.0% in the three

months through August, a survey by XpertHR found, and now stand just under half

the pace of inflation as measured by the retail price index (RPI).

     Since the fourth quarter of 2016 pay deals in the XpertHR survey have held

steady at a median 2.0%, with half of all pay awards in the three months through

July worth between 1.5% and 2.5%. In August, RPI inflation rose to 3.9%, the

highest level since January 2012. 

     Manufacturing sector pay growth equalled that in services in June through

August, with both seeing a median 2.0%.

     The findings from XpertHR, a specialist pay and benefit consultancy, were

largely consistent with the Bank of England's Q3 Agents Report published earlier

this month, which saw little acceleration in labour cost growth despite rising

skill shortages.

     The BOE agents stated that "growth in total labour cost growth was modest

overall, with the majority of pay awards clustered around 2%-3%". 

     The Bank agents report highlighted that labour cost inflation was greatest

"across a range of IT skills and within construction, where skills shortages

were most acute".

     XpertHR last month said that over 70% of the pay deals in its databank were

effective in the first four months of the year, so the final months of 2017 will

not change the pay picture.

     According to Sheila Attwood, XpertHR pay and benefits editor, proposed pay

rises for public sector workers, for which the government is expected to review

over the coming months, will generate only limited upward inflationary pressure.

     "Public sector workers may well be in line for pay awards in excess of 1%

over the coming year, but overall restraint remains across the economy and

workers face a continued period of below-inflation pay increases," Attwood said.

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

[TOPICS: MTABLE]