Workplace Report November 2021

Pay and prices

Earnings growth remains modest

Official earnings growth was down across the board in August, continuing its two month dip. The figure for the whole economy still remains artificially high at 5%, impacted by the effects of the pandemic on comparator data. Payline, which shows actual pay settlements, indicates earnings growth achieved 2.2% in September – although this figure masks a wide range of deals (see pages 15-19). The latest AWE regular pay figures are still high at 7.8% (down from 9.8%) in finance and business services, and 5.9% (down from 7.7) in construction. The 5.6% overall private sector figure contrasts with a 2.7% median increase in the public sector. Importantly, inflation has also taken a jump this month, with RPI reaching 4.9%.