U.K. wage negotiators agreed on the smallest salary increases since September 2006 in the quarter through October as employers gave minimum pay raises to their lowest-earning workers, Incomes Data Services said.
Salary gains for the lowest-paid slowed after the government ordered a 3.2 percent increase in the national minimum wage, the smallest gain since 2002. Bank of England policy maker David Blanchflower said Oct. 30 wage growth will stay “muted” as a record wave of immigration helps curb inflation pressures.
“It’s the lowest increase in a long time for the national minimum wage, and it’s having an impact on settlements,” Ken Mulkearn, editor of the London-based IDS’s pay report, said in an interview. The last time the minimum increase was lower was in 2002, when the gain was 2.4 percent, he said.