June 2011
Featured in this insight: Financial services
Research reveals UK recruitment positive but pay freeze prevalent: A new study has revealed that while the private sector is looking positive in terms of almost a third of employers planning to hire more permanent staff before the end of the year, average wages are not seeing the same growth.
The survey was carried out by the Confederation of British Industry (CBI) and recruitment agency Harvey Nash, who together employ nearly 3.5 million people.
In total, the research figures showed that 29% of the 335 employers who took part in the survey hope to hire full-time staff in the next six months, however all employers reported that pay freezes, especially in the public sector, have increased from 14% last October to 23%.
CBI's Director-General, John Cridland, commented: "With the recovery in its early stages and inflationary pressures a worry, employers are having to take tough decisions on pay... Only a quarter of employers can afford to make an award in line with inflation. Most are trying to strike a fair balance by offering either modest awards or targeting pay rises on essential staff. As a result, we are seeing very little in the way of wage inflation in the economy."
