Low retail pay awards drag salaries down

LOW pay awards in the private services sector dragged down average remuneration settlements in the three months to October, figures out today from IDSpay.co.uk claimed.

The minimum wage rose by 2.5 per cent in the month, but the report indicates many employers were not able to match that rise for other workers, thanks to low consumer demand.

Median pay across the whole economy rose 2.3 per cent in the three months to the end of October, the report showed.

Manufacturing and production workers in the private sector fared best with a 3.1 per cent rise, while public sector workers performed worst with no rise.

Meanwhile, service sector workers received increases of 2.4 per cent.

“Reduced consumer spending looks like it is having an effect on some retailers’ profits, and even those that are continuing to perform well may be using the uncertain economic outlook to hold onto their cash rather than increase their wage spend,” said IDSpay.co.uk’s Ken Mulkearn.

“The news is brighter for employees in manufacturing, but the level of inflation means that here too staff are facing a continued squeeze on their incomes.’”