Pay awards above 3% are becoming the exception rather than the rule (PDF format, 276.2K) (external website) in 2009 as the recession takes hold, according to latest research from the Bank of England.
The Bank of England's April 2009 Agents' summary of business conditions finds that:
Across all sectors of the economy, per capita labour costs were widely reported to be lower than a year earlier. [...] [B]onus and commission payments were well down on the previous year. Pay pressures had also eased. Reports of settlements in excess of 3% were rare, while pay freezes were widespread. And a few contacts had either imposed cuts in salaries or were planning to do so.
This is in stark contrast to the situation a year ago (subscription required), when the Industrial Relations Services (IRS) headline pay award measure was enjoying a period of comfortable stability at 3.5%.
Tomorrow (Friday 24 April 2009) we will be publishing the latest monthly analysis of whole economy pay trends from IRS, covering the three months to 31 March 2009. Visit Employment Intelligence or the XpertHR Pay and Benefits homepage tomorrow to find out the latest movements in whole economy pay awards.
- Has your organisation recently carried out an annual pay review? If so, and if it has now been settled, please get in touch so that we can add your organisation's pay award to the IRS database.
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