Wage prospects improved but bosses still unsure
20/02/2012
While many employers are planning pay increases, some are still uncertain about workers' wages.
According to a recent survey by the Chartered Institute of Personnel and Development (CIPD), the expected mean basic pay settlement for 2012 is 1.7 per cent.
This is an increase of 1.5 per cent in the previous quarter and 1.3 per cent during the same period last year.
It is believed to be the most positive employer outlook display since 2009.
However, the CIPD warned that some businesses are showing far less certainty when it comes to employee numeration.
In the private and voluntary sectors, 55 per cent and 56 per cent of employers respectively said they were unable to predict what they would be paying their workers in the coming months.
Low and unchanged wages have taken their toll on household budgets in recent months.
Research by Lloyds TSB revealed that rising living costs and weak income growth has left one in five consumers with no discretionary income after they have paid for essentials.
As a result, many are prioritising savings and debt management above non-essential spending.
Posted by Kim Burns
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