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NewsPoor pay increases 'a sign of economic pressures'
Poor pay increases 'a sign of economic pressures'
The poor pay increases recorded across the UK of late are reflective of the economic pressures facing firms, it has been claimed.
A new survey reported by the Industrial Relations Services revealed that around four in ten of all pay deals are being settled with wage freezes.
In addition, the median rise in pay for UK workers stood at one per cent over the three months to the end of July, which is the lowest figure since the survey began in 1994.
Responding to the statistics, Tony Dolphin, senior economist at the Institute for Public Policy Research, said: "It clearly is a sign of the pressure that companies are under."
He added: "While it's not good news for demand and spending that people are getting such low pay rises ... it is keeping more people in work."
According to Mr Dolphin, it is preferable to have more people in work with no pay rises than to have increases in wages for some and other people seeking employment.
28/08/2009 16:28
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