Sept 23 (Reuters) – 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.
“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 UK employees
(Reporting by Andy Bruce; editing by David Milliken)
