Service sector pay deals at nine-year low

Pay
increases in the service sector have dropped to their lowest level in nine
years, according to the Confederation of British Industry (CBI).

CBI
research finds that average pay deals in the sector dropped to 2.8 per cent in
the three months to April.

The
figure is the lowest since April 1994 and falls well below a 3.1 per cent
average pay rise in January and a 3.2 per cent rise in April 2002.

McCafferty,
the CBI’s chief economic adviser, blamed a weak economy and falling profits.

The
manufacturing sector, however, showed a more positive trend, with pay rises
climbing slightly to 3 per cent in the three months to April.

This
follows a 2.8 per cent average rise in January and 2.7 per cent in April 2002.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today and OHW+ - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Comments

This field is for validation purposes and should be left unchanged.

Δ

It
is the first time service sector awards have been lower than those in
manufacturing for six years.

By Ben Willmott