–UK Jun-Aug Median Pay Deal 2.0%; Unchanged Vs May-Jul: XpertHR
–UK Median Pay Deal Jan-Aug 2.2%: XpertHR

LONDON (MNI) – UK pay growth has remained subdued with median pay
deals holding steady at 2% in the three months through August and it
stands at 2.2% in the first eight months of this year.

The latest analysis by XpertHR shows that pay so far in 2011 has
shown a muted response to high headline inflation outturns. In the first
eight months of this year inflation on the CPI measure has averaged
4.3%, and CPI hit 4.5% in August.

The busy months for pay deals are out of the way, as they come at
the start of the calendar year for the private sector and the start of
the fiscal year (April) for the public sector. With relatively few pay
deals left to come this year the debate over whether pay will pick-up
now rolls on to the 2012 new year pay round.

XpertHR analysed 1,482 pay awards covering 7.9 million employees,
amounting to just over 27% of the workforce, in the January through
August period.

Its research finds companies’ performance/ability to afford deals
was cited as the key determinant of pay, followed by inflation.

The XpertHR data series shows that, in the post credit crunch
world, the median pay deal was zero back in early summer 2009 and just
0.5% in its September 2009 survey.

The pay freezes that made up more than half of some of XpertHR’s
surveys in 2009 have faded away in the private sector, but have been
replaced by the very widespread public sector pay freeze.

By the April pay round last year the median pay deal was 1.4% and
it went up to 2.3% in early 2011 but has flatlined at 2% since the April
pay round this year.

Members of the Bank of England’s Monetary Policy Committee, at
least until the latest bout of market turmoil and renewed economic
weakness, had worried about high inflation passing through into pay.

The XpertHR data does show pay deals have risen markedly from their
trough, but the current median is bang-in-line with the MPC’s 2.0%
inflation target.

XpertHR was previously known as IRS.

–London newsroom: 0044-7862-7491 email: drobinson@marketnews.com

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