Collectively bargained pay raises in recently signed union contracts are on the rise in 2018. First-year wage increases negotiated in labor contracts through Jan. 28 averaged 2.9 percent, up from 2.8 percent at this time last year, according to biweekly calculations from Bloomberg Law’s database of wage settlements.

Private sector wage increases showed smaller growth than in 2017, while public sector raises showed improvement, according to a report based on data compiled from 46 union contracts.

The manufacturing sector is showing lower wage increases in 2018 than in 2017. Manufacturing unions negotiated an average 1.8 percent wage increase in the...