Private firms slowly close pay gap
Median pay rises have fallen back to 2.8% because of wage freezes in the public sector, but are higher in private firms, according to a new report.Pay analysts Incomes Data Services (IDS) said the trend for pay awards in the private sector to run at 3% at the median was continuing into the second quarter of the year.
In contrast, one in five recent settlements in the public sector involved a pay freeze, up from one in 12 last month.
Ken Mulkearn of IDS said: "Private sector pay awards are continuing in the 2.5% 3.5% range, despite the economy slipping back into recession.
"After a two-year period in which wage rises trailed behind increases in the cost of living, it looks like the gap with inflation is closing, but very slowly.
"Recent high inflation has hit real wages hard, and is a worry for companies too. Concerns about falling living standards haven't gone away and are feeding a debate over consumer spending and the broader economy."
A study of more than 100 private and public sector settlements showed the median rise slip back from 3% to 2.8% in recent weeks.
"Recent high inflation has hit real wages hard, and is a worry for companies too. Concerns about falling living standards haven't gone away and are feeding a debate over consumer spending and the broader economy."
A study of more than 100 private and public sector settlements showed the median rise slip back from 3% to 2.8% in recent weeks.
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