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Outlook ‘bleak’ as private sector pay hits new low
Business digest: New report shows income increases out of step with inflation rate
Private sector pay is at a record low, confirming Bank of England governor Mervyn King's assertions that UK households are being squeezed for the longest period since the 1920s.
Annualised incomes rose 0.5 per cent in the three months leading to February, according to a survey by Vocalink. This was way out of line with the current consumer prices index (CPI) inflation rate, which stands at 4 per cent.
Manufacturing employers were worst hit, seeing a sudden drop of 0.6 per cent in their pay during the same period.
Marion King, the chief executive of Vocalink - who used data from over 200 FTSE-350 companies - said that the outlook was "bleak".
Public sector earnings increased by 1.3 per cent in the period.
Read a full report at BBC News. ·
