The study by IDSPay.co.uk said that a small number of pay rises are above 4 per cent, with some car and utilities industry deals being close to the days of pre-recession.
In the first quarter of 2011, pay rises for private sector workers rose from 2.5 per cent at the end of March to 3 per cent by the end of April, showing very small signs that wages are slowly climbing back up. Workers in the manufacturing sector saw their level of pay rising considerably, from 0.5 per cent to 3 per cent during the same period.
Ken Mulkearn, editor of IDS Pay Report, said: “The latest figures show that private sector pay awards are where we thought they would be at this time, reflecting a degree of recovery in profitability and higher levels of inflation .”
However, the future for workers wages continues to look bleak as inflation sores and employers not being in the position to match the rate with pay rises. Economists have warned that there is a “limited” chance pay would catch up with inflation in the near term. Therefore, workers are set to continue to struggling as their take-home income fails to match the cost of living.
Economist at BNP Paribas, Ken Wattret, said workers would continue to feel the pinch as there were a number of recent factors, including disappointing figures for manufacturing output and yesterday’s low mortgage approval levels, showing that the economy was still “really struggling”.
Mr Wattret also said employers were under little pressure to hand out pay rises to match the inflation rate, saying: “It’s going to be a very difficult period for the economy in general and the labour force. In the short run inflation will get higher.”
For more information, please visit www.milsted-langdon.co.uk
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