Pay deals 'lag behind inflation'

wotsthat

The median settlement in the three months to the end of September was 2.6% in the private sector, Incomes Data Services said.

This compared with a pay freeze on average in deals within the public sector, the report said.

http://www.bbc.co.uk/news/business-15477736

If I'd had to guess what the figure was it would have been something around that level. Obviously in reality the median pay rise across combined private and public sector would be lower.

Graham_Devon

My guess was spot on too.

Wonder what the mean figure is though, as it's slightly more relevant.

wotsthat

Weighted average 1.2%. Good news for the BoE - not so good if you are on the receiving end of a crap payrise.

http://www.incomesdata.co.uk/news/press-releases/paysettlements1084.pdf

System

Sounds realistic, we got 2-3.5 depending on performance back in April.

Graham_Devon

wotsthat wrote: »

Weighted average 1.2%.

Tells a completely different story!!

wotsthat

Graham_Devon wrote: »

Tells a completely different story!!

The median average is ok, but it will be including those who got a £600,000 pay rise and the like.

Not really - it's telling the same story in a different way. The median 2.6% was for the private sector only don't forget. The public sector got close to nothing.

The average across the economy therefore is bound to be somewhat lower.

nearlynew

So much for the debt-junkies wet dream of wage inflation making their debts smaller.

:rotfl:

Graham_Devon

nearlynew wrote: »

So much for the debt-junkies wet dream of wage inflation making their debts smaller.

:rotfl:

Aye, but don't forget, just like they all have the 0.03% above base tracker mortgage, they also have the 5% pay deals.

wotsthat

nearlynew wrote: »

So much for the debt-junkies wet dream of wage inflation making their debts smaller.

:rotfl:

Inflation makes the debt smaller. Wage inflation makes it more affordable.

Aberdeenangarse

Workers in private firms received a median pay rise of 2.6% in recent months, while those in the public sector received no increase, revealing a "clear gap" between the two groups of employees, a new study showed.

http://money.uk.msn.com/news/city-news/gap-in-public-and-private-pay-6

RenovationMan

To try and find a silver lining.. At least this means that internal inflation remains low and so the BoE has no incentive to raise interest rates.

Another few months of 0.5% and therefore a few more months of mortgage overpayments for people who are on low trackers.