PAY DATA
Pay awards centred on 2.5% for first half of 2013, says IDS
Pay settlements have held steady at 2.5% in the three months to June, according to the latest data from IDSPay.co.uk.
However, pay awards in manufacturing continue to be higher than those in private services, a trend first monitored at the start of the April pay bargaining round. In manufacturing, the IDS headline measure of pay awards (the median) is 2.8%, while in private services it is 2.5%.
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Within manufacturing, the energy and water and vehicles and components sectors are leading the way, with median pay awards at 3%. Meanwhile, within private services sectors, median pay increases in financial services, leisure, IT, telecoms and media are at 2.5%.
Outlook for pay
So, what are the prospects for pay settlements in the months ahead? IDS reckons inflation may have an impact, with the latest RPI figure rising to 3.3% and City forecasters expecting it to remain above 3% in the short term. For private services, the comparatively low rise in the national minimum wage (1.9%) may have a bearing on future pay awards.
IDS says:
“But pay awards have been lagging inflation for some time now. Of course, affordability is still key and employers will need to look at this alongside addressing any concerns around employee engagement and motivation."
Summary data
For the three months to the end of June 2013, based on 177 settlements covering 2,200,040 employees in total, the median settlement figures are:
A final word
“Our latest figures indicate signs of a recovery in manufacturing, as pay rises here continue to settle ahead of those in private services in the second quarter of the year. So far pay increases in private services appear unaffected by slightly higher rates of inflation but whether this gap can be bridged depends on the economic recovery in the months ahead.” - Ken Mulkearn, IDS Head of Pay & Research.
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