As the busy period in the pay bargaining calendar draws to a close, IRS Pay and Benefits Bulletin takes a look at how wages have fared in some of the largest parts of the economy.

Our round-up of pay awards in the finance sector reveals that this sector is so far defying the credit crunch. Pay settlements in the finance industry are currently almost half a percentage point higher than they were this time last year.

Elsewhere, pay awards in the manufacturing sector are running at 3.5%, again higher than the previous year. Our report is based on information on almost 400 pay awards in the manufacturing industries.

However, commentators for both sectors told IRS that prospects for the year ahead look less rosy. In the finance sector, bonuses due to be paid in early 2009 are predicted to be worth less than those received this year, while the manufacturing sector is feeling the pinch from energy price rises, which commentators say will contribute towards lower pay awards in 2009.

Other top stories in this issue:

• Migrants have no impact on UK wages or unemployment, says DWP
• Executive pay: all sides "unhappy" with the status quo
• Online tool calculates economic benefits of investing in health

If you are interested in the factors that will shape the wage bargaining environment over the coming year, you can register now to take part in our annual pay prospects research. Respondents will receive a full copy of the forecasting report.

Sheila Attwood,
Editor,
Pay and Benefits Bulletin

Pay reports recently added to the site:

Western Power Distribution: new deal generates 5.1% increase

Lloyds TSB: 3.8% paybill budget increase

Pay review update: 15 August 2008

The latest pay review update table contains pay settlements at News International, Nottingham Textile Group, Rolls-Royce Aerospace, Tesco Customer Service Centre and many more.

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Statistics and forecasts

The datafile contains the most recent inflation, earnings and labour market statistics, pay settlement data and inflation and earnings forecasts. Our panel of City and academic forecasters is currently expecting headline inflation to peak at 4.4% in the third quarter of the year, before falling to 4.1% in the last three months of 2008. Average earnings growth is expected to remain stable, averaging 4% in 2008 and 3.9% in 2009.

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From the blog

Launched and run by the editorial team that produces XpertHR and the IRS e-journals, the Employment Intelligence blog is regularly updated with news, comment and links to the latest employment developments. Recent posts include:

• Grim times for recruiters
• Why pay remains a serious business in the silly season
• An end to top-up tips
• Equal pay complaints overtake unfair dismissal complaints

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