Pace of change set to pick up in local government

There are significant differences between local authorities that have opted out of national local bargaining and those that follow the national agreement in terms of basic pay increases, pay progression and other terms and conditions. This is the overall finding from the Survey of Pay and Conditions in Local Government 2015/16 conducted by Incomes Data Research.

Basic pay increases ranged from zero to over 5% at opted-out councils, this compares with the 1% nationally-negotiated increase in 2015. Continue reading Pace of change set to pick up in local government

Earnings grow at 2% but wide sectoral differences remain

Average weekly earnings continue to grow at around 2% across the economy, down from the 3% level seen last summer, but there are wide variations between the different sectors. In the latest figures released by the ONS on 18 May, strong earnings growth has continued in construction, while in the lower-paying sector of retail and hospitality, earnings growth has dropped sharply, to 1% in March. Continue reading Earnings grow at 2% but wide sectoral differences remain

Settlements in brief: April pay awards show rise in proportion of higher-end increases

Our next detailed analysis of pay settlements will appear in our regular Pay Climate e-bulletin at the end of the month. However, ahead of this we took a look at the figures to see what they might indicate. The figures for the three months to March, based on some 70 awards, show a median of 2%, and a fairly narrow interquartile range between 1% and 2.5%. The average is the same as the median, at 2%. Continue reading Settlements in brief: April pay awards show rise in proportion of higher-end increases

Fall in City bonuses pushes average earnings growth down to 1.8%

Average weekly earnings growth in the whole economy dropped back to 1.8% in the three months to February, from 2.1% in January, but this was almost entirely caused by a substantial fall in bonuses in the finance and business services sector. Some commentators have pointed to a shift from bonuses to basic pay in this sector. Continue reading Fall in City bonuses pushes average earnings growth down to 1.8%

Average earnings growth rises but remains modest

Average weekly earnings growth across the UK economy rose marginally in January to 2.1%, according to the latest figures from the ONS (16 March). It had been falling – from 3.0% in September to 2.4% in October, to 2.1% in November and 1.9% in December – so the latest figures could indicate a recovery in wages. However the figures will have to indicate further growth before a rising trend can be said to have been established. Continue reading Average earnings growth rises but remains modest

Earnings growth weakens to 2% as economy falters

Growth in earnings looked to have slowed considerably towards the end of last year, according to the latest average weekly earnings figures from the ONS (20 January). These show that average weekly earnings rose by 2.0% across the whole economy in the year to November 2015, down from 2.4% in October and from 3.4% in the year to September. Continue reading Earnings growth weakens to 2% as economy falters

Inflation to return to an upward trend?

shutterstock_361657682The all-items Retail Prices Index rose to 1.2% per cent in the year to December 2015, up from 1.1% in the year to November. The main factor behind the modest rise in inflation is transport costs, particularly air fares but also, to a lesser extent, motor fuels. Air fares usually rise by around a fifth at this time of year. However this year they rose by almost a half, reflecting strong demand from consumers. Meanwhile petrol prices fell, but by less than a year ago, producing an upward pressure on inflation. Looking at downward effects, food prices continued to fall, but this was not sufficient to offset the upward effects from air fares and petrol. Continue reading Inflation to return to an upward trend?

Earnings growth slips back to 2.4%

shutterstock_234775651Average weekly earnings rose by 2.4% in the whole economy in the year to October 2015, down from 3.0% in the year to September, according to figures released by the ONS on 16 December. Earnings growth in the private sector slipped back from 3.4% in September to 2.7% in October, in part because of lower pay growth in finance and business services. Meanwhile pay growth in the public sector rose slightly from 1.4% in September to 1.6% in October, but remains weak. Continue reading Earnings growth slips back to 2.4%