Workplace Report June 2017

Bargaining news

Outloook for pay in 2017


The TUC has published a report on pay trends in 2016 and the outlook for 2017 compiled by Incomes Data Research which suggests that far too many employers still plan to give the same pay rise as they did last year, clustering around 2.0%. 


Higher inflation is likely to be an upward pressure on pay, but with a time lag, and it will only be realised if the economy and labour market both remain in robust shape. 


Annual uplifts in the statutory National Minimum Wage and National Living Wage (aligned in April from now on) are seen as an upward pressure in low-paying areas of the economy.


Brexit effects have yet to be realised, apart from the fall in the value of sterling, prompting inflation to rise, but negative predictions have been important in “conditioning the responses of many economic actors”.


As the TUC puts it: “Britain still needs a pay rise and it must get one soon.”


https://www.tuc.org.uk/sites/default/files/Pay%20trends%20in%202016%20and%20outlook%20for%202017.FINAL_.pdf