Stable pay awards signal easing inflation pressures amid persistent tight labor market conditions.
UK private sector pay awards remained unchanged at 3.5% in the three months to March, matching the prior quarter’s pace. The figure aligns with recent trends but remains above pre-pandemic averages, reflecting ongoing wage pressures in a tight labor market.
Analysts had anticipated a slight uptick, though consensus estimates varied. The stability follows a period of elevated wage growth, which peaked at 6% in mid-2023 before moderating. Comparable data from the Bank of England shows public sector pay awards lagging at 3.1% over the same period.
Markets showed muted reaction, as the print reinforces expectations of steady monetary policy in the near term.