Editor's message: HR and reward professionals need to keep track of inflation rates, labour market data and other key indicators to understand the context in which their organisation is recruiting, retaining and rewarding their employees.
Official statistics from the Office of National Statistics show that despite slow economic growth, the labour market has held up well and unemployment has fallen. Despite both CPI and RPI inflation rising, this has yet to feed through into upward pressure on pay awards or earnings.
Sheila Attwood, managing editor, pay and HR practice
Pay awards across the private sector are worth a median 2% in the year to the end of August 2017, but some variation exists by industry.
Low pay growth continues in the charity sector.
The chemicals sector, once renowned for awarding higher pay rises than others, is now awarding increases at the same level as other parts of the economy.
The construction industry has recorded one of the highest median pay awards of any sector over the past year.
More pay deals pitched at a higher level than last year as median in the utilities sector rises to 2%.
Engineering sector pay awards are flat at 2% despite more buoyant trading conditions.
Finance sector pay awards remain at 2.5%, despite a robust operating background.
Pay awards in the general manufacturing sector hold steady, but questions remain over future trading conditions.
The hotels, catering and leisure sector made pay awards in line with the private sector as a whole over the past year.
While the headline pay award in the information and communications sector remains steady, more employers froze pay in this more than any other sector.