The results of the survey by XpertHR is likely to be of interest to the country’s central bank, which has repeatedly downgraded its forecasts for wage growth after pay growth failed to accelerate significantly.
According to the results of a survey that was released on Thursday, in the last three months there has been a dip in the average pay rise awarded by British employers. The trend underscores other recent signs of weak wage growth.
According to wage data provider XpertHR, the median annual pay award had fallen to 2.3% compared with 2.5% over the three months to June. However, the data were finely balanced, since a couple of extra pay deals could have either pushed the median to 2.5% or even down to 2.0%. It could have gone either way.
These figures are likely to interest officials at the Bank of England, which has repeatedly downgraded its forecasts for wage growth after pay growth failed to accelerate significantly.
According to official wage data which was published last week, the total annual wage growth has slowed to a 9-month low of 2.4% in the period from April to June; this is below forecast levels of 2.5%.
Significantly, the trend is despite the fact that unemployment rates have fallen to their 43-year low of 4.0%.
According to XpertHR, it has sampled 51 pay awards from April to July – a relatively quiet time of the year since most annual pay rounds take place in the first four months of the year.