Median pay gains ground on inflation

The median pay rise achieved in unionised workplaces in the three months to July was 8% according to LRD Payline. This figure was the same for workers on all grades. This puts the growth in wages above the government-preferred measure of CPI inflation at 6.7% but still behind the union-preferred measure of RPI at 9%. The latest official earnings figures also show regular pay (excluding bonuses) went up by 7.8% over the year to June. However, while wages are gaining ground on inflation, it is not consistent across the economy, nor enough to end the current wage squeeze.

In average weekly earnings, the private sector is still faring better, with 8.3% the median rise (up from 7.4%), while in the public sector workers achieved 6.5%.