The median pay award across the economy remained at 4% in the three months to October 2024, according to figures from Incomes Data Research (IDR).
The figures are based on 30 pay awards from across the economy between 1 August and 31 October 2024, covering 830,000 workers.
The overall median has been at 4% since July. The proportion of increases worth between 4% and 4.99% fell from 47% to 37% across the economy as a whole, while the number of increases worth 5% or more remained steady at 20%. One-quarter (27%) of pay awards were worth between 3% and 3.99%, 13% were worth between 0.01% and 2.99%, and 3% were pay freezes.
The median pay award across the private sector has fallen from 4% to 3.9%, with the largest cluster of awards continuing to occur between 4% and 4.99%. However, the proportion of outcomes in this bracket decreased from half in the three months to September to 44% in October.
The median pay award in the public sector rose from 4.8% to 4.9%. The median has been equal to, or higher than, the private sector median throughout 2024, due to a number of higher-level rises worth 5% or more for thousands of public sector workers.
Meanwhile, analysis of awards in the manufacturing sector revealed that the median fell steeply from 4% to 3% in the three months to October, mostly due to fewer awards at 4% or above in the current period.
Zoe Woolacott senior researcher at IDR, said: “The fall in the private sector median may be an indication that pay pressures are easing a little, together with signs of cooling in the labour market. However, this dip in the median has occurred at the same time as an uptick in inflation and this could maintain pay outcomes at, or around, their current level.”
