Thursday, January 06, 2005

Wage inflation especially for manual workers

Further evidence of the polarisation of labour demand emerged today when the UK's Daily Telegraph published an article on wage inflation.

It reports that

Basic pay rises hit 3 per cent in November, up from just 2.2 per cent in September, with particularly strong rises among manual staff. Total pay rises, including bonuses, remained steady at 2. 8 per cent, and stood below the latest official figures for October that put the growth in average earnings in both the public and private sector at 4.2 per cent

...manual staff saw their basic pay jump from 2.6 per cent to 3.6 per cent between September and November, compared with a rise from 1.9 per cent to 2.7 per cent for clerical staff and from 2.3 per cent 2.7 per cent for managers.

Andrew Walker of Croner who conducted the research commented

Basic pay rises hit 3 per cent in November, up from just 2.2 per cent in September, with particularly strong rises among manual staff. Total pay rises, including bonuses, remained steady at 2. 8 per cent, and stood below the latest official figures for October that put the growth in average earnings in both the public and private sector at 4.2 per cent


Related previous article: Technology advancement and the demand for labour