Thursday, September 30, 2010
Healthy recovery, echo of weaker pound, or 1970s wage-price spiral?
Fewer firms are freezing their workers' pay and more are paying rises of between 2% and 3%, according to research. A study of 300 companies by IDSPay.co.uk showed that settlements have averaged 2% this year, with half of employers not freezing pay. IDS said the number was similar to last year, suggesting that pay freezes were never as widespread as initially portrayed. Higher pay rises of at least 3% were recorded in both the private services and manufacturing sectors, reflecting the continuing recovery of both, but settlements were lower in the public sector.