‘Workers are being warned to expect meagre wage rises until at least 2020, as weak productivity and new costs such as the national living wage curb employers’ readiness to raise salaries.
Even though employment is expected to rise, pay growth is forecast to be just 1.7% over the next year, as an ample supply of labour helps employers hold back on wage rises in a “jobs-rich, pay-poor” economy, said the Chartered Institute for Personnel and Development (CIPD).
Weak pay growth has also added to pressures on households and the CIPD, the trade group for the HR industry, warned that the pattern of low rises in pay is set to continue. It is calling for more practical government measures to help employers raise productivity, a measure of output per hour worked.
“For now, there’s no sign of the economy running out of jobs, or out of people to fill those jobs,” said Mark Beatson, CIPD chief economist.
“However, the UK is now in its eighth year of productivity go-slow which continues to limit the scope for employers to pay more, and recruitment and retention problems have so far proved manageable without across-the-board pay rises.”’ - Guardian
‘In a letter to the Business Secretary, the Institute of Chartered Accountants in England and Wales (ICAEW) attacks ministers for having “no clear consensus” on how to boost growth and raise living standards.
It cautions Sajid Javid that the Government’s preoccupation with the referendum is causing ministers to neglect a pledge in the Budget to encourage investment and lift productivity. A lack of Government support meant businesses were more reluctant to make spending decisions, it says.
Ahead of the Queen’s Speech this week, where Her Majesty will set out the Government’s priorities, the ICAEW said it was vital that policies such as the apprenticeship levy were clarified to give businesses the certainty they need to invest.’ - Telegraph