Workplace Report October 2021

Pay and prices

Earnings stable, inflation jumps

Official earnings growth has taken a slight dip this month but remains artificially high at 5.9% (see the article on pages 18 to 19 for why this figure is distorted). However, this is in no way matched by median pay settlements on Payline, which stay between 2.0 and 2.6 (see box, below). The latest AWE regular pay figures (below right) go as high as 10% in finance and business services, and 10.7% in construction. The 6.6% overall private sector figure contrasts with a 2.5% median on known negotiated private sector pay rates in the three months to August. Importantly, inflation has also taken a jump this month, with RPI reaching 4.9%.