Research and analysis

Impact of economic recovery on pay settlements. Incomes Data Services

An examination of the impact of economic recovery on pay settlements both across the whole economy and low-paying sectors.



This paper, written by Incomes Data Services for the Low Pay Commission, explores how economic recovery has affected pay settlements.

It considers 3 main questions:

  • to what extent has the economic recovery affected the distribution of pay settlements in 2011?
  • how does the level of increase to the National Minimum Wage (NMW) affect the distribution of pay settlements, especially the 3-month data including the month of uplift?
  • is the NMW continuing to have an effect on the timing of pay settlements, particularly at organisations in low-paying sectors?