Pay settlements by British employers have cooled, adding to signs of a softer labour market as businesses said they faced higher employment costs and tighter budgets, a survey showed on Wednesday.
The median pay award by employers was revised down to 3.0% from 3.2% in the three months to July and held at that level in the three months to August, figures from human resources data firm Brightmine showed.
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“Pay awards remain stagnant, and that very much looks to be the story of 2027. Brightmine data shows pay growth settling at 3%, and there is very little reason for that to shift significantly in the medium term,” said Sheila Attwood, Brightmine’s HR insights and data lead.
- The data is likely to offer some reassurance to Bank of England officials about the extent of domestic inflation pressures as they weigh an interest rate hike in November
- Employers are forecasting median pay awards of 3% for the year ahead, compared with realised awards of 3.2% for the year to August 31
- Brightmine said pay settlements were tightly clustered, with 71% of awards between 3% and 4%
- Brightmine’s data for the three months August was based on 45 pay awards implemented between June 1 and August 31, covering more than 755,000 U.K. employees
(Reporting by Andy Bruce; editing by David Milliken)
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