Incomes Data Research said on Wednesday that the median pay settlement awarded by major employers held at 4.0% for the second month in a row.
Median pay awards in the public sector stood at 4.5%, above those in the private sector which slowed to 4.1%.
“The differing outcomes in the private and public sectors reflect the cycle of pay between the two, with the public sector currently in the ‘catching-up’ phase, after a lengthy period in which pay awards lagged behind those in the private sector,” Zoe Woolacott, senior researcher at IDR, said.
Finance minister Rachel Reeves announced above-inflation pay increases worth 9.4 billion pounds ($12.53 billion) for public sector workers including teachers and doctors shortly after the Labour Party won a parliamentary election in July.
Official figures last month showed British private sector wage growth cooled to a more than two-year low of 4.9% in the three months to July.
The BoE is monitoring wage growth, and expects private-sector pay to slow to 3% in late 2025.
The central bank, which cut its key Bank Rate in August for the first time since 2020 but kept it at 5% on Sept. 19, is expected to lower borrowing costs by a further quarter point at its November meeting.
The IDR analysis was based on 39 pay deals which covered more than 740,000 workers between June 1 and Aug. 31.
($1 = 0.7505 pounds)
Source: Economy - investing.com
