Stagnant Pay

Survey by the Chartered Institute of Personnel and Development shows few bosses giving staff more money.

Starting salaries are expected to remain low for the rest of the year after a wide ranging jobs survey found only 2% of employers handed an above-inflation pay rise to new recruits in the last year. Only 20 out of 1,000 employers said they had paid a significant rise to new workers, adding to concerns that a surge in job creation over the last 18 months and skills shortages have failed to increase take-home pay.

 The debate over wages growth will return when official data on Wednesday is expected to show stagnated in June. A majority of City economists believe figures from the Office for National Statistics could even reveal a fall of 0.1% in wages.  Most analysts have dismissed the ONS's figures, arguing they are skewed by a sharp rise in bonuses last year following the cut in the top rate of tax to 45p. They point to surveys showing workers have received pay rises worth between 2% and 2.5% in some sectors, reflecting staff shortages in some industries.

 Private sector firms expected to pay no more than 2% in the coming months. Public sector employers said they had pencilled in only 1% average rises. FTSE 100 directors have increased their wages 27% in 2012 and 14% in 2013 - whilst peoples wages have been held down or cut. Let's face it, according to our masters, we employees don't really deserve increased pay and should think ourselves damn lucky to have a job of any sort. After all it is  more important to reward the share-holders with the returns on their investment they so desperately need.