Pay analysts, IRS are predicting an end to wage stagnation which has seen settlements stagnate at 3% for 20 successive rolling quarters.
IRS Pay and Benefits editor, Sheila Attwood said:
“With the majority of employers still using the RPI measure of inflation to benchmark pay awards, some rise in wage settlements in the first half of 2005 remains likely. Pay settlements are now running 0.4 percentage points behind inflation and therefore not delivering real increases in pay. The festive season really could mark the end of the current run of pay stagnation.”
The latest findings show that in the last quarter, public sector awards have matched private sector settlements at 3% while manufacturing and service sector pay awards are stabilizing at the same rate.
IRS analysed pay data of 59 settlements between September and November.