-IDS: UK May-Jul Private Sector median pay deal 2.5% vs 3% Q2

LONDON (MNI) – The median pay award in the UK private sector
continued to languish at low levels in the three months to July,
according to an IDSPay.co.uk survey.

Private sector pay deals fell to 2.5% in May through July from 3%
in Q2 and employee-weighted pay deal were just 2.0%. This latest survey
from IDS solely covers the private sector, as public sector pay deals
are typically settled in April and in August outside the survey dates.

The 2.5% median pay deal was the same rise as seen in the three
months to July 2011.

The employee-weighted average pay increase rose slightly on the
year, climbing to 2.0% from the 1.7% increase seen in the three months
to July 2011.

UK earnings growth remains extremely subdued and these data
underline that.

Commenting on the data, Ken Mulkearn, Editor of IDS Pay Report,
said:

“The slight fall in the median basic pay award, while it comes
outside the main April pay-setting period, highlights the squeeze in
living standards that has been in evidence for the past few years.”

These data will add to the extensive evidence the Bank of England’s
Monetary Policy Committee has that the higher-than-expected inflation
outturns seen early in 2012 have not fed through into higher pay deals.

-London newsroom: 0044-7862-7492 email: wwilkes@marketnews.com

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