LONDON, May 20 (Reuters) - British employers lowered their pay deals in the three months to April back to levels last seen in mid-2025, according to figures released on Wednesday by human resources data firm Brightmine which add to signs of a slowdown in the labour market.
The Bank of England is watching pay awards with a focus on the busy month of April as it gauges inflation pressures in Britain's economy, which investors view as very exposed to higher energy prices caused by the war in Iran.
Official data published on Tuesday showed average weekly earnings, excluding bonuses, rose by 3.4% in the first three months of 2026 compared with the same period of 2025, the weakest annual increase since 2020.
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Brightmine said the median pay deal was 3.0% in the three months to April, down from a revised 3.4% in the first three months of 2026 and following seven rolling quarters above the 3.0% level
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The drop in the median for the three-month period was driven mostly by settlements in April - a month when many pay deals are reached
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"The return to a 3% median pay award suggests that many organisations are settling into a more sustainable pay position after several years of elevated settlements," Sheila Attwood, Brightmine's senior content manager of data and HR insights, said.
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Brightmine based its reading on 169 pay deals introduced between February 1 and April 30, representing settlements for 2.7 million employees.
Writing by William Schomberg Editing by David Milliken
Source: Reuters