Modest pay rises 'set to help UK economy'

Posted by Mark Cunningham

Modest pay rises are set to provide a boost to the British economy in the wake of the recession, new financial forecasts have stated.

According to revised predictions published today (July 13th) by the Chartered Institute of Personnel and Development (CIPD), reserved hikes in the salaries of many employees across the UK will help to stunt the country's unemployment rate.

Earlier in the year, the CIPD estimated that the nation's gross domestic product would expand at a rate of 1.6 per cent in 2011, with unemployment levels to reach 9.5 per cent by the middle of next year.

However, both these figures have now been downgraded - to 1.4 per cent and 8.7 per cent respectively - by the body.

Dr John Philpott - chief economic advisor at the CIPD, which has around 135,000 members worldwide - observed: "Just as pay freezes and pay cuts protected jobs in the recession, the ongoing pay squeeze is helping our anaemic economy support employment."
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13/07/2011 15:25

News category: Employment

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