Pay has been frozen in a third of settlements this year, although other people have had rises of up to 2.9%, a study showed today.

Wage analyst Incomes Data Services said a study of 74 agreements showed average rises of 1.9%, falling to 1.4% in private firms.

Pay rises averaged 1% at food and drink manufacturers and in the retail sector, rising to 2% at aerospace and defence companies and in finance.

The report said early indications were that public sector rises would be lower this year than in 2009, with local government workers facing a wage freeze.

Organisations have generally paid lower increases in 2010 than a year ago, the research found.

Ken Mulkearn of IDS said: “Our analysis of basic pay settlements shows broadly stable, though modest, growth. If the economy recovers we would expect earnings to rise, even if some pay freezes continue.

“Inflation, which has risen sharply to stand at 3.7% in the year to January, will produce another upward pressure on earnings, through its influence on pay setting.”

Another report said rises in take-home pay fell by 0.4% last month to reach 1%, the lowest level on record.

VocaLink said the “bleak news” on pay reflects the fragile state of the labour market, which it maintained shows few signs of recovery.

Doubts about economic recovery were made worse by uncertainty caused by the impending general election, said VocaLink, which provides transaction services to banks.

A study of 100 companies showed that take-home pay increases fell from 1.9% in December to just 1% in February.