UK May-July Pay Awards Steady At Median 2%: XpertHR

By David Robinson

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

months through July, a survey by XpertHR found, and with the busy months of the

pay calendar year now past the bulk of the UK workforce looks set to see no

acceleration in pay in 2017.

     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 1.0% and 2.6%. Manufacturing sector pay growth outstripped

that in services in May through July, with the former seeing a median 2.6% pay

award and the latter just 1.8%.

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

largely consistent with the Bank of England Agents Report published this month,

which saw little acceleration in labour cost growth despite rising skill

shortages.

     The BOE agents stated that "Recruitment difficulties had edged higher, and

were gradually broadening across sectors and skill areas. Despite this, labour

cost growth had been modest, with pay awards clustered around 2%-3%."

     XpertHR 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 2018 will not

change the pay picture.

     "While most employers are awarding pay rises, the increases are subdued and

falling behind inflation. XpertHR's headline measure of pay awards remains

centred on 2%, and is expected to remain there for the foreseeable future,"

XpertHR pay and benefits editor Sheila Attwood said.

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

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