Page last updated at 09:14 GMT, Thursday, 6 May 2010 10:14 UK

Pay freezes less common as private sector picks up

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Pay is slowly improving - for private sector workers

The number of pay freezes fell in the three months to March, according to a survey from pay analysts Incomes Data Services (IDS).

It found that 31% of settlements recorded in this period resulted in no change to pay, compared with 34% in the three months to February.

Pay rises showed a small improvement, too, with the average increase rising to 1.9% from 1.8%.

Most of the pick-up came from the private sector.

Manufacturing employees registered the best pay rises, IDS said.

Ken Mulkearn of IDS said: "We are seeing a slow recovery in private sector pay awards.

"However, settlement levels are still lagging behind inflation which means that real-terms wage growth remains weak for most workers, and the picture is even worse in the public sector, where restraint has started to bite hard."

IDS monitored more than 100 pay settlements covering 313,000 people.

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