Bloomberg News

U.K. December Wage Growth Stalls on Manufacturing, VocaLink Says

January 12, 2012

Jan. 12 (Bloomberg) -- Take-home pay growth at Britain’s largest publicly traded companies stalled in December as wage increases in manufacturing slowed, VocaLink Ltd. said.

Incomes after tax and other deductions climbed 2.6 percent in the last quarter from a year earlier, the same increase as in the three months through November, the group said in a statement in London today.

Wage growth at manufacturers slowed to 3.6 percent, according to the report. Pay growth at services companies accelerated to 2.5 percent from 2.4 percent and remained unchanged at 2 percent in the public sector. The British Chambers of Commerce said on Jan. 10 that manufacturing export sales fell to the lowest since 2009 in the fourth quarter.

VocaLink said its data “demonstrate the acute underlying weaknesses in the labor market, placing ongoing pressure on wages and salaries.”

The company, which processes 90 percent of British salaries paid directly to bank accounts, used salary-payment data from more than 200 members of the FTSE 350 Index and more than 600 government-related organizations for the report.

--Editors: Fergal O’Brien, Eddie Buckle

To contact the reporter on this story: Colm Heatley in Belfast at cheatley@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net


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