UK employers’ pay awards cool to 3%, Brightmine data shows

British employers have recently shown a cooling in their pay settlements, as indicated by data from human resources firm Brightmine. The median pay award by employers has been revised down to 3.0%, down from 3.2% in the three months to July and remaining at that level in the three months to August. This trend of stagnant pay growth has become the defining characteristic of the labor market in 2027, according to Sheila Attwood, Brightmine's HR insights and data lead.

The data from Brightmine may provide some relief to Bank of England officials as they consider raising interest rates in November. Employers are projecting a median pay award of 3% for the year ahead, compared to actual awards of 3.2% for the year ending August 31. Approximately 71% of pay settlements were found to be within the range of 3% to 4%.

Brightmine's data for the August quarter was compiled from 45 pay awards implemented between June 1 and August 31, covering more than 755,000 UK employees.