Thursday, October 24, 2019

Low Pay Deals in Future

British employers plan to scale back their pay rises for staff next year, an industry survey showed.

Human resources data company XpertHR said the 123 private-sector employers it surveyed expect to offer a median 2.1% annual pay settlement between now and the end of August 2020, compared with an average 2.5% over the past 12 months. 

“While the strong labour market continues to put pressure on employers to raise wages, other costs and an uncertain outlook could well mean lower pay rises for employees,” XpertHR analyst Sheila Attwood said. 

Unemployment is also close to its lowest since the mid-1970s at 3.9%, but there was an unexpectedly sharp fall in hiring in the three months to August, raising concerns that the slowdown in the rest of the economy is spreading to the job market. 

XpertHR said concerns about Brexit and profits were the main factors pushing down on the pay that businesses were willing to offer, while staff retention and a desire to keep pay rates competitive were putting upward pressure on pay.

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