Jobs growth fails to translate to increases in productivity and wages
8 August 2014
The UK’s economic upturn is not being reflected in salaries, with only 2% of employers reporting a significant increase, according to the Chartered Institute of Personnel and Development (CIPD) Labour Market Outlook, which was released today.
Mon, 11 Aug 2014The UK’s economic upturn is not being reflected in salaries, with only 2% of employers reporting a significant increase, according to the Chartered Institute of Personnel and Development (CIPD) Labour Market Outlook, which was released today.
Mark Beatson, chief economist at the CIPD, said: “Recruitment intentions are high, SMEs provide much of the fuel and we are seeing this all over the UK, with employers in the Midlands and the North having the highest short-term employment optimism.
“This is great news for job seekers, but we urgently need to see jobs growth accompanied by productivity growth for workers to feel the benefits of the recovery too. This would help place it on a more balanced and sustainable footing and create the economic headroom for real wage increases.”
Only two-fifths of employers report that their organisation has conducted a pay review since the start of 2014 and the number of employers that plan to freeze pay has risen to 10% in summer 2014, from 8% in the spring 2014, according to the report.
The CIPD is advocating for a concerted focus on improving productivity from employers and policy makers to lay the foundations for sustainable growth in real wages.
Office for National Statistics figures show that output per hour worked, the most common measure of labour productivity, is still around 4% lower than its pre-recession level.
Mark Beatson, chief economist at the CIPD, said: “Recruitment intentions are high, SMEs provide much of the fuel and we are seeing this all over the UK, with employers in the Midlands and the North having the highest short-term employment optimism.
“This is great news for job seekers, but we urgently need to see jobs growth accompanied by productivity growth for workers to feel the benefits of the recovery too. This would help place it on a more balanced and sustainable footing and create the economic headroom for real wage increases.”
Only two-fifths of employers report that their organisation has conducted a pay review since the start of 2014 and the number of employers that plan to freeze pay has risen to 10% in summer 2014, from 8% in the spring 2014, according to the report.
The CIPD is advocating for a concerted focus on improving productivity from employers and policy makers to lay the foundations for sustainable growth in real wages.
Office for National Statistics figures show that output per hour worked, the most common measure of labour productivity, is still around 4% lower than its pre-recession level.
