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Average pay rises have jumped to 3.5%, as higher inflation feeds through to wage settlements, a new report shows. The average level of deals has risen from 3% in the first quarter of the year to 3.5% at the start of the second three-month period. However the pay picture remained mixed, with wage freezes being imposed in parts of the manufacturing sector, while rises of up to 7% were being agreed by construction firms.

Pay analysts Incomes Data Services said increases in private firms were running slightly ahead of those in the public sector. Public sector increases in April ranged from 2.9% for teachers in England and Wales to 4% for local government workers in Scotland. The 47 private sector deals recorded this month, covering half a million workers, were mainly worth between 3% and 4%.

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