LONDON – Pay awards by British employers rose to a 31-year high of 5% in the three months to November, but remained well below annual inflation of more than 10%, data from human resources company XpertHR showed on Wednesday,
The Bank of England is watching closely for signs that the jump in inflation is creating longer-term price problems in the British economy via elevated pay deals.
XpertHR pay and benefits editor Sheila Attwood said the cost-of-living squeeze remained a key factor for companies setting pay, along with the difficulties facing many employers in finding and retaining staff in a tight labour market.
“December will be a crucial month given the current wave of industrial action taking place in the UK,” Attwood said. “It is more important than ever that employers seek to strike the right balance between employees’ pay expectations and affordability.”
XpertHR’s measure of pay deals had remained at 4% for seven consecutive months until its November report.