Two-year low for pay awards

The midpoint in the range of pay increases across the whole economy has registered a second monthly fall, dropping to 2.8%, according to the latest analysis from Personnel Today’s sister publication IRS Employment Review.

The 2.8% for the three months to 28 February 2006 is the lowest rate recorded by IRS since dipping to the same rate in March 2003.

Mark Crail, editor of IRS Employment Review, said: “The fall cements our view that there is a slowdown in wage pressure at the start of 2006.”

This month’s result marks the first time the IRS Employment Review measure of pay settlements has fallen for two consecutive months since January 2002.

This decline in wage indicates “that pay settlements are settling in behind falling inflation”, added Crail.

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