Pay rises in the service sector have fallen to their lowest level in nine years, according to the Confederation of British Industry (CBI).
The figure, the lowest since April 1994, falls well below a 3.1% average pay rise in January and a 3.2% rise in April 2002.
The CBI blamed a weak economy and falling profits.
“Retailers are seeing an underlying slowdown in sales while financial services and tourism are still suffering from low profits,” said Ian McCafferty, the CBI’s chief economic advisor.
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