UK Employers Report Joint-Lowest Pay Rises Since June 2022, According to Brightmine Breakdown by Reuters

LONDON (Reuters) – Employers in the UK provided their employees with the joint-lowest pay increases since June 2022, with a median raise of 4% recorded for the three months ending in August, according to data from human resources firm Brightmine released on Tuesday.

These figures are consistent with other pay surveys and official data indicating a slowdown in wage growth as inflation aligns closely with the Bank of England’s 2% target.

The Bank of England is closely monitoring wage growth in anticipation of additional signs that inflation pressures are easing, which could lead to future interest rate cuts.

Sheila Attwood, senior content manager at Brightmine, noted, "Employers that have implemented pay awards this year have already responded to the declining inflation trend by offering smaller increases compared to last year."

The 4% annual increase during the period ending in August matches the figure from the previous three months, which was revised down from an earlier estimate of 4.5%.

Official statistics revealed that the growth in average weekly earnings, excluding bonuses, was the slowest it has been in over two years, recorded at 5.1% for the three months ending in July.

A survey by the Bank of England indicated that businesses expected to raise wages by 4.1% over the next year.

Brightmine, previously known as XpertHR, stated that its data for the three months ending in August was based on 67 pay awards affecting 900,000 employees.