Workplace Report May 2021

Pay and prices

Wage growth masks skewed economy

Official figures for average weekly earnings in February for regular pay (excluding bonuses) in the whole economy continue to show growth at 4.5%. However, this growth continues to be inflated by the elimination of lower-paying jobs. Underlying growth is more like 2.5%.

The financial and business services sector is still enjoying a bonanza at 6.7%, while manufacturing remains flat, at 1.7%.

LRD Payline data on agreed deals for March shows a flat, across the board median increase at 2.0% ,but this is still based on very thin data. The biggest growth has largely been in public sector pay.