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UK employers give joint-lowest pay rises since June 2022, Brightmine says
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LONDON (Reuters) – British employers gave staff the joint-lowest pay rises since June 2022 in the three months to the end of August, offering a median raise of 4%, figures from human resources data company Brightmine showed on Tuesday.
LONDON (Reuters) – British employers gave staff the joint-lowest pay rises since June 2022 in the three months to the end of August, offering a median raise of 4%, figures from human resources data company Brightmine showed on Tuesday.
The figures are in broadly line with other pay surveys and official data showing a continued slowing of pay growth now inflation has returned to near the Bank of England’s 2% target.
The BoE is watching pay growth closely as it awaits further signs that inflation pressures are weakening before it cuts interest rates again.
“Employers that have made pay awards so far this year have already reacted to the falling inflation environment by putting in place lower pay awards than made last year,” said Sheila Attwood, senior content manager at Brightmine.
The 4% annual increase in the three months to August was the same as the figure for the three months to July, which was revised down from an earlier estimate of 4.5%.
Official figures showed that growth in average weekly earnings, excluding bonuses, was the slowest in more than two years in the three months to July at 5.1%.
A BoE survey of businesses over the three months to August expected to raise wages by 4.1% over the next 12 months.
Brightmine – formerly known as XpertHR – said the data for the three months to August was based on 67 pay awards covering 900,000 employees.
(Reporting by David Milliken; Editing by William Schomberg)
A pay rise is an increase in an employee's salary or wages, often given as a reward for performance or to keep up with inflation.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, maintaining monetary stability, and overseeing the financial system.
Average weekly earnings refer to the average amount of money earned by workers in a week, excluding bonuses and overtime pay.
A median raise is the middle value of pay increases received by employees, indicating the typical raise amount within a specific period.
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