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Latest News

Service sector pay deals at nine-year low

by Personnel Today 30 Jun 2003
by Personnel Today 30 Jun 2003

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.

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

By Ben Willmott

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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