Survey: UK businesses plan to raise pay by most since 2012 - Reuters
|On Monday, a survey conducted by the Chartered Institute of Personnel and Development (CIPD), a human resources professional body, showed that the UK businesses plan to increase the basic wages by the most in seven years, Reuters reports.
Key Findings:
Private-sector employers planned to increase basic pay rates this year by 2.5 percent on average, the most since the survey started in 2012.
Inflation was the top reason given by firms to the CIPD for expecting pay rises greater than 2 percent, raising a question about whether this will be sustained now inflation has fallen below this level.
Recruitment and retention issues and increases in the going rate of pay elsewhere were the other main reasons for raising pay by more than 2 percent.
CIPD economist Jon Boys said: “Productivity is 22 percent lower than it would have been if the pre-financial crisis trend had continued. As a result, pay growth is woefully behind.”
The CIPD said public-sector employers expected average pay rises to drop back to 1.1 percent this year after a temporary rise to 2 percent, which had reflected a more generous settlement for hospital workers and some other staff.
As a result, the overall median wage settlement for employers across the economy remained unchanged at 2 percent.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.