Pay rises 'to be rare in private sector'

Pay rises for employees in the private sector look set to remain few and far between in the coming months, new research has stated.

According to a study published on Tuesday (June 21st) by the Confederation of British Industry (CBI) and recruitment firm Harvey Nash, restraint on wage increases appears to be becoming the norm for the private arena in the aftermath of the global economic downturn.

The Navigating Choppy Waters Employment Trends Survey - which involved questioning 335 companies with 3.5 million workers across the UK - found that the number of firms planning to implement a pay freeze has gone up to 23 per cent from 14 per cent last October.

John Cridland, director-general of the CBI, observed: "With the recovery in its early stages and inflationary pressures a worry, employers are having to take tough decisions on pay."

Recently, a spokeswoman from the Federation of Small Businesses said that many firms are curbing their desire to employ more staff due to concerns about the financial recovery.
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21/06/2011 14:54

News category: Employment

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