LONDON (Reuters) -Pay increases granted by British employers stayed at 3% in the three months to March, according to figures from human resources data firm Brightmine that are likely to be welcomed by the Bank of England.
It marked the fourth consecutive rolling quarter of pay awards at that level, and the joint lowest pace of increase since December 2021.
BoE officials are watching closely to see how employers react to an increase in social security contributions – known in Britain as national insurance – and a higher national minimum wage. Both took effect in April.
“Currently the data isn’t showing any signs of a knee-jerk reaction to recent national insurance changes,” said Sheila Attwood, Brightmine’s senior content manager.
“However, we do know that employers are taking a watch and wait approach, so we expect to see that reflected in the second half of this year.”
Britain’s minimum wage went up this month by almost 7%. Attwood said Brightmine had seen more pay deals awarded at the lower end of its range, but the overall picture was one of stability.
The BoE is watching for signs that inflation pressure in Britain’s jobs market is abating sufficiently for it to carry on cutting interest rates. It is widely expected to do so on May 8.
Brightmine analysed 125 pay settlements effective in the three months to March 31 covering around 192,000 employees.
(Reporting by Andy Bruce; editing by Suban Abdulla)
