In the three months that ended in October, the median award for private sector employees fell from 4% down to 3.9%.
Incomes Data Research’s latest figures show that the percentage of increases in the sector between 4.0% and 4.99% also decreased in this time period. It dropped to two-fifths (39%), compared with almost half (47%), in the three months up to September.
The data also showed that the number of pay awards valued at 5% or higher had been reduced from 12% to 6%, largely due to the manufacturing industry.
IDR has highlighted the fact that statistics are influenced by this period of the year, when it is usually relatively quiet.
Zoe Woolacott is a senior researcher with IDR. She said that the fall in median pay in the private sector may indicate that the pressure on wages has eased a bit, along with signs of cooling down in the labour markets.
This dip in the median occurred as inflation increased, and could keep pay outcomes at or near their current levels.
The Pay and Employment Research Organisation’s analysis found that the median pay for the entire economy was 4%, which is 0.1 points lower than the median in the private sector. However, the median overall has been 4% since July 20,24.
According to the most recent research, the percentage of increases between 4,0% and 4,99% has decreased from 47% down to 37% for the entire economy. However, those with a value greater than 5% have remained at around a fifth.
Data shows that this is because the median pay in the public sector was 4.9%, higher than the average for the entire economy or the private sector.
The IDR pay settlement figures are based on 30 pay awards that will be effective between the 1 August and the 31 October 2024.
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