LONDON (Reuters) – Pay awards by British employers held at a 30-year high of 4% in the three months to October, well below annual inflation of more than 11%, data from human resources company XpertHR showed on Wednesday,
The Bank of England is watching closely for signs that the jump in inflation is creating longer-term price problems in the British economy via elevated pay deals.
XpertHR pay and benefits editor Sheila Attwood said employers were caught between seeking to retain staff in a very tight labour market and worries about an expected recession.
“It is likely that affordability will continue to be the driving factor in final pay decisions as economic uncertainty looms at the forefront of many businesses’ concerns,” she said.
XpertHR’s measure of pay deals has remained at 4% for seven consecutive reports. In the three months to October last year, the median pay award was worth 2%, it said.
(Writing by William Schomberg, editing by Andy Bruce)